Nov 29 (Reuters) - Synopsys (SNPS.O) on Wednesday forecast first-quarter revenue above Wall Street expectations, as artificial intelligence (AI) adoption boosted demand for the company's chip designing software.
Synopsys forecast current-quarter revenue between $1.63 billion and $1.66 billion, above analysts' average estimate of $1.60 billion.
The rise in custom chip design efforts by firms like Microsoft (MSFT.O) and Alphabet (GOOGL.O) has also boosted demand.
"You need a very specific silicon in order to power that (AI) training," Sassine Ghazi, the company's president and chief operating officer, said of the boom in AI chips in an interview.
Ghazi told Reuters that increased use of Synopsys AI services helped boost the value of some of its contracts by 20% at renewal time.
Persons:
Sassine Ghazi, Ghazi, Aart de Geus, Synopsys, Harshita Mary Varghese, Shailesh Kuber, Deepa Babington
Organizations:
Design, Microsoft, Intel, Mercedes, Benz, Reuters, Revenue, Thomson
Locations:
Sunnyvale , California