On July 23, Synopsys declined 3.04% in regular trading, trading at $377.25/share, with turnover of $314 million, erasing the prior session's 3.14% gain.

On the news front, lingering concerns over China's Kimi K3 AI model — which demonstrated a complete chip design workflow in just 48 hours using open-source EDA tools — continued to weigh on traditional EDA leaders. The market remains cautious about the potential erosion of the commercial monopoly long enjoyed by incumbent EDA vendors. The initial shock from the Kimi K3 announcement on July 18 had already triggered intraday declines exceeding 12% for both Synopsys and Cadence Design Systems.

While Needham reiterated its Buy rating on Synopsys on July 22, arguing that agentic AI will re-accelerate EDA software licensing growth rather than disrupt incumbents, the stock failed to sustain the resulting bounce. The broader backdrop of customer attrition fears — stemming from Synopsys's strategic decision to discontinue its fab process control software suite — has compounded selling pressure in recent sessions.

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