Synopsys (NasadaqGS: SNPS) surged Thursday, lifting technology sector-related exchange traded funds after the chip design software firm’s results beat forecasts and upgraded its full-year outlook.

On Thursday, the Invesco Dynamic Software ETF (PSJ) increased by 3.2% and the VanEck Vectors Semiconductor ETF (SMH) gained 1.5%.

Meanwhile, Synopsys shares jumped 12.0%. SNPS makes up 5.4% of PSJ’s underlying portfolio and 3.7% of SMH.

Synopsys posted a fiscal second-quarter profit of $294.8 million, or $1.89 per share, with an adjusted EPS of $2.50 that topped analysts’ expectations of $2.37 per share, Barron’s reports. Revenue for the quarter ended April increased to $1.28 billion, compared to estimates for $1.26 billion.

The company also raised its revenue guidance for the full year to between $5 billion to $5.05 billion, compared to its previous target of $4.78 billion to $4.83 billion. Additionally, the projected earnings per share to fall in the range of $6.22 to $6.40, or upwardly revised from a range of $5.53 to $5.72.

Analysts favored the improved guidance and were optimistic about the company’s outlook.

“Synopsys is an EDA [electronic design automation]company with a leading position in FinFET [field effect transistor]design, which could provide growth opportunities,” KeyBanc Capital Markets analyst Jason Celino said in a research note Thursday morning, adding that the stock is one of KeyBanc’s most favorable durable stock ideas for 2022, with an overweight rating and a price target of $445.

Needham analyst Charles Shi also showed surprise by the company’s update and also raised guidance.

“In a bear market, where investors lament they have ‘nowhere to hide,’ we think EDA stocks like SNPS are the right places to be,” Shi said in a research note Thursday. “We raise our PT to $380 to reflect higher estimates and our strong conviction. Reiterate Buy.”

Synopsys provides software tools used among computer chip designers like Intel Corp. and Qualcomm Inc. to automate the semiconductor design process. Chip design includes multiple stages, such as design, verification, signoff, physical verification, and more, and Synopsys’ software can aid in each of these steps, siliconANGLE reports. Almost every computer chip in the world has utilized software from Synopsys or rival Cadence Design Systems Inc.

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