Shares of Synopsys plummeted nearly 35% due to Sino-U.S. trade tensions impacting revenue. U.S. restrictions on chip technology hindered business in China, leading to missed Q3 revenue estimates. Synopsys faces challenges with a major foundry customer and is conducting a strategic review after acquiring Ansys for $35 billion.

Intel’s scaled-back chip manufacturing plans have affected Synopsys, with analysts speculating a focus on Intel’s “18A” technology. The company will cut its workforce by 10% by 2026. Peer Cadence Design Systems also saw a 7% decline in shares. Chinese customer confidence remains low despite export restrictions being lifted.

Read more at Yahoo Finance: Synopsys set to wipe out 2025 gains as shares tank on China business woes