Synopsys Trading Volume Drops 61% Despite Strong Q2 Earnings and AI Expansion

On June 2, 2025, Synopsys (SNPS) saw a trading volume of $600 million, marking a 61.18% decrease from the previous day. The stock price rose by 0.47%, marking the second consecutive day of gains, with a total increase of 2.45% over the past two days.

Synopsys's second-quarter fiscal year 2025 results highlight its critical role in the semiconductor value chain, driven by the increasing demand for AI, advanced computing, and system integration. The company is expanding into AI and multichip systems, with a strategic $35 billion acquisition of Ansys aimed at creating a broader design platform. This acquisition offers significant synergy potential, although it also brings challenges.

Synopsys has halted sales and services in China due to new U.S. export restrictions, as revealed in an internal memo. This move is in response to the U.S. Commerce Department imposing new restrictions on sales to China, leading to the withdrawal of financial guidance for the full fiscal year 2025. The company received a letter from the Bureau of Industry and Security (BIS) regarding these restrictions, which has created uncertainties and impacted its stock performance.

Synopsys's second-quarter fiscal year 2025 financial results showed strong performance, with quarterly revenue of $1.604 billion, exceeding the midpoint of guidance. The company reported GAAP earnings per diluted share of $2.24 and non-GAAP earnings per diluted share of $3.67, both exceeding expectations. Despite these positive results, the company's stock has faced volatility due to the new export restrictions and the suspension of its annual and quarterly forecasts.