Synopsys Inc. (SNPS Quick QuoteSNPS - Free Report) recently reinforced its collaboration with Taiwan Semiconductor Manufacturer Company (TSM Quick QuoteTSM - Free Report) and Ansys (ANSS Quick QuoteANSS - Free Report) for the design and manufacture of multi-die systems.

Multi-die systems integrate heterogeneous dies in a single package, providing a path for designers to efficiently deliver innovative products with unprecedented functionality. By reusing proven dies, designers can reduce risk, accelerate time to market and rapidly create new product variants with optimized system power and performance.

Synopsys is currently leading the industry transformation from monolithic system-on-chips to multi-die systems with a comprehensive and scalable solution for fast heterogeneous integration. Multi-die systems enable early architecture exploration, rapid software development and system validation, efficient die/package co-design, robust and secure die-to-die connectivity and improved manufacturing and reliability. The solution, including electronic design automation tools and intellectual property, is integrated with Ansys’ multi-physics analysis technology and developed on Taiwan Semiconductor's 7-nanometer (nm), 5nm and 3nm process technologies with support for TSM’s 3DFabric technologies and 3Dblox standard.

Synopsys has been benefiting from strong design wins owing to a robust product portfolio. The company’s penetration into new and growing artificial intelligence chip companies is a major growth driver. With the increasing need for enhanced security measures, considering the rising security threats in interconnected systems laden with software, demand for Synopsys’ solutions is shooting up. Robust growth in software-based verification at both traditional semiconductor and emerging system companies focused on its own in-house design is an upside.

In April, SNPS introduced a first-of-its-kind ZeBu Server 5 emulation system, which can deliver up to 30 billion gates capacity, two times higher throughput and improved energy use with less than half of the power consumption compared with its predecessor.

In October 2022, the company, in collaboration with Keysight Technologies, announced the availability of its new millimeter wave radio frequency design flow for Taiwan Semiconductor’s 16nm FinFET compact technology. In the same month, Synopsys announced the general availability of its Code Sight Standard Edition solution for IntelliJ. It also launched the breakthrough golden signoff ECO solution that addresses lengthy engineering design closure times through a separate deal.

In the first quarter of fiscal 2023, the Synopsys Electronic Design Automation segment reported revenues of $874.3 million, gaining 12.3% on a year-over-year basis. Total revenues jumped 7.2% year over year to $1.36 billion in the last quarter. For second-quarter fiscal 2023, the Zacks Consensus Estimate for revenues is pegged at $1.38 billion, which suggests an increase of 7.7%.

Zacks Rank & Stocks to Consider

Synopsys and Ansys currently have a Zacks Rank #3 (Hold), while Taiwan Semiconductor carries a Zacks Rank #4 (Sell). Shares of SNPS and ANSS have climbed 29.1 and 14.4%, respectively, in the past year. Meanwhile, shares of TSM have plunged 12.1% during the same time frame.

A better-ranked stock from the broader Computer and Technology sector is Meta Platforms (META Quick QuoteMETA - Free Report) , flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta Platforms' first-quarter 2023 earnings has been revised a penny downward to $1.96 per share over the past seven days. For fiscal 2023, earnings estimates have moved south by 2 cents to $10.24 in the past seven days.

META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 8.6%. Shares of the company have gained 13.7% in the past year.