Upgrading to Overweight, See Renewed IP Activity & Agreements on the Horizon

Research evidence excerpt

Upgrading to Overweight, See Renewed IP Activity & Agreements on the Horizon

capacity and components as stifling for design diversity and creating a Market Cap. (mil) US$91,057.7

headwind for the SNPS business. Six months into '26, and we believe much of that is still Avg Daily Vol (000) 1,875

true, but the market's 180° on the viability of Intel's 18A-P node offers a real alternative Div (ann) US$0.00

to limited TSMC capacity, and we believe could pave the way for a faster-than-expected

recovery for IP at Synopsys's largest customer. Fiscal Year End Oct

Price Performance - 1 Year

• Apple considering 18A-P & 14A for future Mac & iPhone silicon. Last week, USD

President Trump announced Apple had reached an agreement with Intel to 'design and 700

build its chips in America'. This follows reports last month of a preliminary agreement 650

being reached with Apple planning to use Intel to build 'low-end/legacy iPhone, iPad, and 600

Mac processors'. If true, this could spur new IP activity for Synopsys soon under the 550

preexisting 18A/18A-P agreement with a 14A announcement in the future. Importantly,

while SNPS's largest peer has already signed a 14A agreement, we believe consumer- 500

centric IP, suitable for Apple devices, is largely a captive opportunity for SNPS with the 450

company's largest peer focused more on Data Center/HPC IP blocks. 400

| TBD what chips Apple builds w/ Intel vs. TSMC. Apple has not made 350 ◦Caveat Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26

any statement on the agreement. Upside is dependent on the scope of Apple's

commitment to Intel's foundry: # of chips & the selected designs. Source: Bloomberg

| Intel has not reached PDK 0.9 for 14A. The Intel 14A PDK has a ◦Caveat

target window for the 0.9 release in October.