Synopsys (SNPS) Drops to 5-Month Low on Dismal Earnings

We recently published 10 Stocks Melt Down in Hours. Synopsys Inc. (NASDAQ:SNPS) is one of the worst performers on Wednesday.

Shares of Synopsys fell by 35.84 percent on Wednesday to a new five-month low, as investor sentiment was dampened by a dismal earnings performance in the third quarter of fiscal year 2025.

In intra-day trading, Synopsys Inc. (NASDAQ:SNPS) dropped to its lowest price of $380.84 before paring losses toward the end of the session.

This followed the release of its earnings performance in the third quarter, where Synopsys Inc.’s (NASDAQ:SNPS) net income declined by 40.56 percent to $242.5 million from $408 million in the same period last year, despite total revenues growing by 13 percent to $1.7 billion from $1.5 billion year-on-year.

“Q3 was a transformational quarter. Against a challenging geo-political backdrop, we closed the Ansys acquisition—expanding our portfolio, customer base, and opportunity. Now more than ever, Synopsys is the mission-critical partner technology R&D needs to design and deliver AI-powered products,” said Synopsys Inc. (NASDAQ:SNPS) President and CEO Sassine Ghazi.

“While I’m proud of how our team navigated external challenges in the quarter, our IP business underperformed expectations. We are taking action to enhance our competitive advantage and drive resilient, long-term growth,” he added.

While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.