ANSYS Inc ANSS, TSMC and Microsoft MSFT have successfully tested a solution that enhances the simulation and analysis process of silicon Photonic Integrated Circuits (PICs). The joined forces have yielded a 10X speed-up in Ansys’ Lumerical FDTD photonic simulations using Microsoft Azure’s NC A100v4-series virtual machines powered by NVIDIA accelerated computing technology operating on Azure AI infrastructure. 

Silicon PICs (category of optical communications) are a critical component of hyperscale data centers and Internet-of-Things applications, where vast amounts of data must be transferred at high speeds across long distances.  Applications of silicon PICs span industries, including data communications, biomedical tools, automotive LiDAR systems and artificial intelligence. 

However, the design and fabrication of PICs pose unique challenges, particularly when it comes to combining photonic circuits with electronic circuits. Any design flaw can lead to discontinuity within the chips, resulting in costly delays that could stretch to several months.

ANSS’ Strategic Tie-Up Fixes the Complexities of PIC Design

To overcome the challenges associated with the design and optimization of silicon PICs, Ansys, TSMC and Microsoft executed a pilot project to accelerate the simulation process using cloud infrastructure. The enhanced speed and efficiency of Lumerical FDTD simulations in the cloud have a direct impact on the ability to unlock the ultra-bandwidth capabilities of silicon PICs. By deploying Lumerical FDTD on Azure NC A100v4-series virtual machines, which utilize NVIDIA's cutting-edge GPUs, the experiment achieved remarkable results. 

The Azure NC A100v4-series VMs provided highly efficient and scalable performance. This not only reduced the time required for simulations but also optimized the use of resources, effectively balancing cost with performance. Moreover, Azure Virtual Desktop ensured a smooth transition to the cloud by maintaining the same user experience as on the desktop, allowing designers to continue using familiar tools and interfaces while benefiting from the scalability and power of the cloud.

The partnership between Ansys, TSMC and Microsoft showcases the potential of combining advanced simulation tools with the power of cloud computing, setting a new standard for innovation in the semiconductor and photonics industries.

ANSS’ Innovation in Simulation to Drive Top-Line Expansion

Ansys continues to hold a strong foothold in the high-end design simulation software market through strategic partnerships that expand its product line and cushion the top-line performance. In July 2024, ANSS extended collaboration with NVIDIA and Supermicro to offer Turnkey hardware solutions that substantially boost Ansys Multiphysics simulation capabilities. 

The company’s robust product portfolio and cross-domain offering will continue to increase customer engagement. As of June 30, 2024, total deferred revenues and backlog came in at $1.394 billion, up 7.6% year over year. 

Additionally, the company is gaining momentum across most of the sectors. In the last reported quarter, ANSS’ revenues climbed 20% year over year to $594.1 million, beating the Zacks Consensus Estimate by 7.9%. The upside was driven by two major multi-year contracts worth $210 million in the automotive and high-tech industries during the quarter in the Americas region. 

Ansys has not issued an outlook, given the pending acquisition by Synopsys (announced in January 2024). The transaction has been approved by Ansys shareholders.

ANSS’ Zacks Rank & Stock Price Performance

ANSS currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 9.9% in the past year compared with the sub-industry’s growth of 35.3%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Harmonic Inc. HLIT, and Ubiquiti Inc. UI. HLIT sports a Zacks Rank #1 (Strong Buy), whereas UI carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.

Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

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