As previously reported, Benchmark analyst Mark Schappel upgraded Ansys to Buy from Hold, stating that he believes software fundamentals remain intact and the recent pullback in the sector is due to a rotation that may be short-lived. Given this view, he sees the valuation of Ansys as more compelling relative to downside risks over the next couple of quarters, Schappel tells investors. He set a $187 price target on Ansys shares.

Ansys (ANSS) announced a collaboration with TSMC (TSM) on multiphysics software for TSMC's Compact Universal Photonic Engines. COUPE is a cutting-edge Silicon Photonics integration system and Co-Packaged Optics platform that mitigates coupling loss while significantly accelerating chip-to-chip and machine-to-machine communication. TSMC COUPE, along with Ansys multiphysics solutions that are integrated with Synopsys' 3DIC Compiler unified exploration-to-signoff platform, enables the next generation of silicon photonics and co-packaged optics designs for applications in AI, datacenter, cloud, and HPC communications. The work spans multiple areas, including fiber-to-chip coupling, integrated electronic-photonic chip design, power integrity verification, high-frequency electromagnetic analysis, and critical thermal management.