Chip design software provider Synopsys exceeded fourth-quarter revenue expectations due to high demand for its chip design tools, with shares rising 5% in extended trading. The company has benefitted from increased investment in artificial intelligence and advanced computing, as well as partnerships with Nvidia, Intel, and Qualcomm. Synopsys recently announced layoffs of 10% of its workforce to focus on growth areas like AI-driven design. The company’s acquisition of Ansys contributed $667.7 million in revenue. Competing with Cadence Design Systems and Siemens, Synopsys posted quarterly revenue of $2.26 billion, exceeding estimates. Adjusted profit was $2.90 per share, above expectations. For the first quarter, revenue is expected to be between $2.36 billion and $2.42 billion, compared to analyst estimates of $2.38 billion.

Read more at Yahoo Finance: Synopsys tops revenue estimates on strong demand for chip design tools