This Week In AI Chips - Synopsys Faces Legal Challenges Amid Revenue and Income Decline

Synopsys, Inc., a provider of design automation software for integrated circuits, has recently faced legal challenges following a significant stock decline. The company’s Design IP segment, which includes AI-driven silicon components, reported a 7.7% year-over-year decline in revenue and a 43% drop in net income for the third quarter of 2025. This downturn is attributed to increased customization demands from customers, impacting profitability and prompting considerations for a change in business model. As a result, a class action lawsuit alleging securities fraud has been filed against Synopsys, highlighting the challenges within the AI chip sector, particularly relating to evolving customer needs and economic pressures.

In other market news, Kioxia Holdings (TSE:285A) was a standout up 7.7% and finishing the session at ¥10,155. In the meantime, Rigetti Computing (NasdaqCM:RGTI) lagged, down 6.5% to end the day at $28.11.

Demand for Micron's high-margin memory products in AI and data centers is surging, potentially enhancing profitability rapidly. Discover Micron's strategic maneuvers in the expanding high-tech landscape by clicking through to our comprehensive narrative.

Check out our Market Insights article for an in-depth look at AI Chips' market impact, highlighting record capex and stock risks. Act fast!

Best AI Chip Stocks

• Micron Technology (NasdaqGS:MU) finished trading at $237.22 up 4.7%.
• Advanced Micro Devices (NasdaqGS:AMD) closed at $217.97 up 0.9%.
• NVIDIA (NasdaqGS:NVDA) settled at $182.41 down 0.5%. Last week, NVIDIA collaborated with Palantir and TWG AI to enhance real-time AI and computer vision for Teton Ridge's sports and media platforms.

Summing It All Up

• Take a closer look at our AI Chip Stocks list of 79 companies, such as Lattice Semiconductor, InnoScience (Suzhou) Technology Holding and Arm Holdings, by clicking here.
• Looking For Alternative Opportunities? Rare earth metals are the new gold rush. Find out which 37 stocks are leading the charge.

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Sources:

• Simply Wall St
• "SNPS INVESTOR LOSSES: Lose Money on Synopsys, Inc.? Contact BFA Law before December 30 Securities Class Action Deadline" from Bleichmar Fonti & Auld on GlobeNewswire (published 07 December 2025)

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