Shares of Synopsys SNPS.O rose 10.8% to $454.34 after the chip design software maker raised annual revenue and profit forecasts.
The stock hit its highest level in nearly two months and was on course for its biggest one-day percentage gain since September last year if current levels held.
"AI is driving unprecedented complexity and increasing demand for the silicon IP and engineering solutions," CEO Sassine Ghazi said.
SNPS supplies software that companies use to design and develop chips.
The results offer another glimpse of how the AI spending boom is benefiting companies across the semiconductor supply chain.
SNPS expects fiscal 2026 revenue in the range of $9.69 billion to $9.74 billion, compared with its prior forecast of between $9.63 billion and $9.71 billion.
It also projected annual adjusted earnings of $15.04 to $15.10 per share, up from an earlier expectation of $14.72 to $14.80 per share.
The stock had lost 12.7% year to date as of the last close.
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