The author suggests a pair trade based on declining fundamentals for Synopsys, noting its design IP income dropped 48% in Q1 and it faces headwinds from losing the China market. Conversely, the author is bullish on Chinese EDA companies Empyrean and Primarius, which are seeing double-digit revenue growth driven by national policy requirements. The sentiment is bearish on high-valuation EDA companies losing IP business to hyperscalers, arguing that AI integration may ultimately reduce the number of software seats needed.