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.

Equity Bottom-Up

<ul><li>Synopsys Inc. reported a robust second quarter for fiscal year 2025, showcasing substantial strength in revenue growth and operational execution.</li><li>The company achieved a 10% year-over-year revenue increase, reaching $1.6 billion, surpassing the midpoint of its forecast.</li><li>Non-GAAP earnings per share (EPS) also exceeded expectations, underlining the efficacy of Synopsys’ business model amid challenging market conditions.</li></ul>

Synopsys Inc. reported a robust second quarter for fiscal year 2025, showcasing substantial strength in revenue growth and operational execution.The company achieved a 10% year-over-year revenue increase, reaching $1.6 billion, surpassing the midpoint of its forecast.Non-GAAP earnings per share (EPS) also exceeded expectations, underlining the efficacy of Synopsys’ business model amid challenging market conditions.

How Is Synopsys Thriving Globally While China Sales Decline—What’s the Real Strategy?

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. </li>
<li>China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. </li>
<li>Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.</li>
</ul>


China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. 
China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. 
Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.


President Trump “orders US Chip Software Suppliers to Stop Selling to China”

<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

Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

<ul><li>Chip design has long been a paradoxical craft.</li><li>On one hand, engineers must trust sophisticated software to help them craft circuits of mind-boggling complexity; on the other, they maintain a healthy skepticism, knowing a single flaw can doom a chip.</li><li>The old mantra "trust, but verify" could well have been coined for this process. </li></ul>

Chip design has long been a paradoxical craft.On one hand, engineers must trust sophisticated software to help them craft circuits of mind-boggling complexity; on the other, they maintain a healthy skepticism, knowing a single flaw can doom a chip.The old mantra "trust, but verify" could well have been coined for this process. 

<ul><li>Synopsys Inc. delivered a notable performance in the first quarter of fiscal year 2025, showing resilience amidst shifting market dynamics and broader economic uncertainties.</li><li>Synopsys reported revenue of $1.46 billion, slightly under its previous year's performance due to one less week in the quarter.</li><li>However, the company's non-GAAP earnings per share were above the guidance range, indicating solid financial management and operational execution.</li></ul>

Synopsys Inc. delivered a notable performance in the first quarter of fiscal year 2025, showing resilience amidst shifting market dynamics and broader economic uncertainties.Synopsys reported revenue of $1.46 billion, slightly under its previous year's performance due to one less week in the quarter.However, the company's non-GAAP earnings per share were above the guidance range, indicating solid financial management and operational execution.

Synopsys Inc.: How Is The Adoption of AI & Agentic AI Technologies Are Helping Them Aplify Their Efficiency In Electronic Design Automation?

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)

How Is Synopsys Thriving Globally While China Sales Decline—What’s the Real Strategy?

Synopsys Inc. reported a robust second quarter for fiscal year 2025, showcasing substantial strength in revenue growth and operational...

Baptista Research

President Trump “orders US Chip Software Suppliers to Stop Selling to China”

US could restrict US chip design software vendors to sell to China. China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

Nicolas Baratte

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

Synopsys: Harnessing Complexity

Chip design has long been a paradoxical craft. On one hand, engineers must trust sophisticated software to help them craft circuits of mind...

MBI Deep Dives

Synopsys Inc.: How Is The Adoption of AI & Agentic AI Technologies Are Helping Them Aplify Their Efficiency In Electronic Design Automation?

Synopsys Inc. delivered a notable performance in the first quarter of fiscal year 2025, showing resilience amidst shifting market dynamics and...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

How Is Synopsys Thriving Globally While China Sales Decline—What’s the Real Strategy?

Synopsys Inc. reported a robust second quarter for fiscal year 2025, showcasing substantial strength in revenue growth and operational...

Baptista Research

President Trump “orders US Chip Software Suppliers to Stop Selling to China”

US could restrict US chip design software vendors to sell to China. ​China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

Nicolas Baratte

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

Synopsys: Harnessing Complexity

Chip design has long been a paradoxical craft. On one hand, engineers must trust sophisticated software to help them craft circuits of mind...

MBI Deep Dives

Synopsys Inc.: How Is The Adoption of AI & Agentic AI Technologies Are Helping Them Aplify Their Efficiency In Electronic Design Automation?

Synopsys Inc. delivered a notable performance in the first quarter of fiscal year 2025, showing resilience amidst shifting market dynamics and...

Baptista Research

US could restrict US chip design software vendors to sell to China. China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

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