Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

Equity Bottom-Up

<ul>
<li>For "Factory 2" engagements, Synopsys collects upfront priority/customization fees and secures volume-based royalties once chips enter production. Royalties carry 100% gross margin and will begin ramping in FY28/FY29</li>
<li>Outcome-Based Revenue Sharing (Lane 3): OpenAI hosts the model/compute, and Synopsys splits revenue on a service basis derived from the Power, Performance, and Area (PPA) improvements achieved by the model</li>
<li>AI models cannot validate physics; they require Synopsys’ core software (and Ansys sign-off tools) for fidelity checkpoints, placement, routing, and GDSII sign-off. Consequently, AI increases rather than decreases EDA usage.</li>
</ul>


For "Factory 2" engagements, Synopsys collects upfront priority/customization fees and secures volume-based royalties once chips enter production. Royalties carry 100% gross margin and will begin ramping in FY28/FY29
Outcome-Based Revenue Sharing (Lane 3): OpenAI hosts the model/compute, and Synopsys splits revenue on a service basis derived from the Power, Performance, and Area (PPA) improvements achieved by the model
AI models cannot validate physics; they require Synopsys’ core software (and Ansys sign-off tools) for fidelity checkpoints, placement, routing, and GDSII sign-off. Consequently, AI increases rather than decreases EDA usage.


Synopsys Investor Day Q&A Session. Key Takeaways & Full Transcript

<ul>
<li>Synopsys is expanding from its traditional “Factory 1” model (standardized IP: build once, sell many times) to a “Factory 2” model focused on Application-Optimized IP (AOIP).</li>
<li>Synopsys raised its long-term revenue CAGR through 2030 to mid-teens (up from low/double-digits), targeting $9.7B in FY26 and driving toward ~$11.15B in FY27 (+15% YoY).</li>
<li>Synopsys announced a $1 billion, multi-year, IP licensing agreement with Amazon as well as a multi-year agreement to collaborate with OpenAI as preferred partners to develop and deliver GPT-Synopsys</li>
</ul>


Synopsys is expanding from its traditional “Factory 1” model (standardized IP: build once, sell many times) to a “Factory 2” model focused on Application-Optimized IP (AOIP).
Synopsys raised its long-term revenue CAGR through 2030 to mid-teens (up from low/double-digits), targeting $9.7B in FY26 and driving toward ~$11.15B in FY27 (+15% YoY).
Synopsys announced a $1 billion, multi-year, IP licensing agreement with Amazon as well as a multi-year agreement to collaborate with OpenAI as preferred partners to develop and deliver GPT-Synopsys


Synopsys Investor Day 2026. Elliott’s Fingerprints Are Everywhere.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Synopsys Incorporated reported strong third-quarter fiscal 2026 results, exceeding the high end of guidance for revenue, non-GAAP operating margin, and EPS.</li><li>Revenue reached $2.477 billion, up approximately 42% year-over-year, including about $711 million from Ansys, acquired one year earlier.</li><li>Non-GAAP operating margin was 41.6%, while non-GAAP EPS reached $3.91.</li></ul>

Synopsys Incorporated reported strong third-quarter fiscal 2026 results, exceeding the high end of guidance for revenue, non-GAAP operating margin, and EPS.Revenue reached $2.477 billion, up approximately 42% year-over-year, including about $711 million from Ansys, acquired one year earlier.Non-GAAP operating margin was 41.6%, while non-GAAP EPS reached $3.91.

Synopsys Goes All-In On Multiphysics As NVIDIA And AMD Validate The Shift!

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>
Sub-8nm foundry license mix surged from 47.6% to 79% in 1Q26, a real-time read on advanced-node platform demand across TSMC, Samsung, and the leading-edge foundry stack.</li>
<li>
A Tier-1 US foundry engagement (likely Intel Foundry or TSMC Arizona in our view) could be confirmed 2Q26, a leading indicator of which US fab attracts external fabless customers first.</li>
<li>
First 3nm royalties landed in 4Q25; sub-16nm royalty +~700% YoY in 1Q26, confirming the AI accelerator supply chain's transition to leading-edge nodes is now live.</li>
</ul>



Sub-8nm foundry license mix surged from 47.6% to 79% in 1Q26, a real-time read on advanced-node platform demand across TSMC, Samsung, and the leading-edge foundry stack.

A Tier-1 US foundry engagement (likely Intel Foundry or TSMC Arizona in our view) could be confirmed 2Q26, a leading indicator of which US fab attracts external fabless customers first.

First 3nm royalties landed in 4Q25; sub-16nm royalty +~700% YoY in 1Q26, confirming the AI accelerator supply chain's transition to leading-edge nodes is now live.


TechChain Insights Q&A: Inside TSMC, Intel and SMIC's Advanced-Node Pipeline - M31 (6643 TT)

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>US – China: Restrictions on Semiconductors are relaxed. EDA tool (Cadence, Synopsys) already relaxed, Nvidia says export license will come, this implies that HBM can be sold to China.     </li>
<li>It’s really hard to “guess” what comes next as US restrictions on technology export to China are just one bargaining tool in much broader negotiations (trade deficit, fentanyl, etc).   </li>
<li>For Cadence and Synopsys, China is 12% of revenues. For Nvidia, China is US$ 30-35bn revenue in 2025 (15-17%).  Positive to Samsung, supplying HBM3 (Nvidia’s H20), GDDR7 (RTX PRO).</li>
</ul>


US – China: Restrictions on Semiconductors are relaxed. EDA tool (Cadence, Synopsys) already relaxed, Nvidia says export license will come, this implies that HBM can be sold to China.     
It’s really hard to “guess” what comes next as US restrictions on technology export to China are just one bargaining tool in much broader negotiations (trade deficit, fentanyl, etc).   
For Cadence and Synopsys, China is 12% of revenues. For Nvidia, China is US$ 30-35bn revenue in 2025 (15-17%).  Positive to Samsung, supplying HBM3 (Nvidia’s H20), GDDR7 (RTX PRO).


Jensen Went to the White House, and to China

United States

Synopsys, Inc. supplies electronic design automation solutions to the global electronics market.  The Company provides design technologies to creators of advanced integrated circuits, electronic systems, and systems on a chip. Synopsys also provides consulting services and support to its customers to streamline the overall design process and accelerate time to market.

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Synopsys Inc (SNPS US)

Synopsys Investor Day Q&A Session. Key Takeaways & Full Transcript

With "Factory 2", Synopsys collects upfront priority/customization fees & secures volume-based royalties post chip production. Royalties carry...

William Keating

Synopsys Investor Day 2026. Elliott’s Fingerprints Are Everywhere.

Synopsys announced a $1 billion, multi-year, IP licensing agreement with Amazon as well as a multi-year agreement to collaborate with OpenAI as...

William Keating

Synopsys Goes All-In On Multiphysics As NVIDIA And AMD Validate The Shift!

Synopsys Incorporated reported strong third-quarter fiscal 2026 results, exceeding the high end of guidance for revenue, non-GAAP operating...

Baptista Research

TechChain Insights Q&A: Inside TSMC, Intel and SMIC's Advanced-Node Pipeline - M31 (6643 TT)

Advanced-node platform demand on the rise, with sub-8nm licenses dominating 1Q26. Tier-1 US foundry engagement could be confirmed 2Q26, signaling...

Vincent Fernando, CFA

Jensen Went to the White House, and to China

US eases restrictions on semiconductor exports to China, allowing for potential sales of HBM technology, positive to Samsung. China represents 12...

Nicolas Baratte

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Market Cap (USDm)

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Synopsys Investor Day Q&A Session. Key Takeaways & Full Transcript

With "Factory 2", Synopsys collects upfront priority/customization fees & secures volume-based royalties post chip production. Royalties carry...

William Keating

Synopsys Investor Day 2026. Elliott’s Fingerprints Are Everywhere.

Synopsys announced a $1 billion, multi-year, IP licensing agreement with Amazon as well as a multi-year agreement to collaborate with OpenAI as...

William Keating

Synopsys Goes All-In On Multiphysics As NVIDIA And AMD Validate The Shift!

Synopsys Incorporated reported strong third-quarter fiscal 2026 results, exceeding the high end of guidance for revenue, non-GAAP operating...

Baptista Research

TechChain Insights Q&A: Inside TSMC, Intel and SMIC's Advanced-Node Pipeline - M31 (6643 TT)

Advanced-node platform demand on the rise, with sub-8nm licenses dominating 1Q26. Tier-1 US foundry engagement could be confirmed 2Q26, signaling...

Vincent Fernando, CFA

Jensen Went to the White House, and to China

​US eases restrictions on semiconductor exports to China, allowing for potential sales of HBM technology, positive to Samsung. China represents 12...

Nicolas Baratte

US eases restrictions on semiconductor exports to China, allowing for potential sales of HBM technology, positive to Samsung. China represents 12...