Synopsys Inc (NASDAQ:SNPS, XETRA:SYP) shares added more than 3% on Monday to trade at about $433 after Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) announced a significant investment and expanded collaboration with the engineering software company. Nvidia is acquiring approximately $2 billion of Synopsys common stock through a private placement at $414.79 per share, making Nvidia one of Synopsys' largest shareholders.
Chip design software maker Synopsys is the latest tech firm to see its stock surge on an AI partnership with Nvidia.
Nvidia is investing $2 billion into Synopsys, which makes software and components for designing semiconductor chips. The deal deepens their existing partnership at a time when analysts have started to scrutinize increasingly common circular AI-industry deals and warn of a potential bubble.
Synopsys Inc (NASDAQ:SNPS) stock is on the rise, last seen up 4.6% to trade at $437.27, after reports that Nvidia (NVDA) has invested $2 billion in the electronic design automation name as part of a new partnership.
Synopsys (NASDAQ: SNPS) stock surged Monday after Nvidia (NASDAQ: NVDA) unveiled a sweeping strategic partnership that includes a $2 billion investment in the Silicon Valley software company.
Nvidia CEO Jensen Huang and Synopsys CEO Sassine Ghazi join CNBC's 'Squawk on the Street' to discuss their latest partnership to accelerate computing and artificial intelligence engineering solutions. On Monday, Nvidia announced its $2 billion stake in Synopsys.
Nvidia has made a $2 billion investment in Synopsys and has a new partnership with the maker of chip-design software.
Nvidia takes $2 billion stake in Synopsys with expanded computing power partnership
Synopsys (SNPS) concluded the recent trading session at $409.68, signifying a +2.01% move from its prior day's close.
Synopsys (SNPS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Synopsys is well-positioned for growth, leveraging AI-powered EDA and the Ansys acquisition to drive innovation in chip design and verification. SNPS's strong financial performance, consistent revenue growth, and robust earnings outlook support a bullish stance, with explosive growth projected into 2026. Relative to peers, SNPS boasts superior profitability and is undervalued based on its P/S ratio, with forward revenue growth expected to accelerate.
Synopsys (SNPS) closed the most recent trading day at $383.82, moving 1.65% from the previous trading session.