By Investor’s Business Daily
Publication Date: 2025-12-01 13:58:00
Artificial intelligence chip maker Nvidia (NVDA) on Monday said it has invested $2 billion in electronic design automation firm Synopsys (SNPS). Synopsys stock jumped on the news while Nvidia stock dipped amid a broad market retreat.
Further, Synopsys and Nvidia plan to collaborate in engineering and marketing activities. Nvidia has stepped up investments in partner companies, including AI model maker OpenAI.
“The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute,” said Synopsy Chief Executive Sassine Ghazi, in a news release. “No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and Nvidia. Together we will re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations.”
Synopsys in September reported third quarter financial results that badly missed Wall Street’s targets and offered mixed guidance.
The Sunnyvale, Calif.-based company earned an adjusted $3.39 a share on sales of $1.74 billion in the quarter ended July 31. Analysts polled by FactSet had expected earnings of $3.80 a share on sales of $1.77 billion. In the year earlier period, Synopsys earned an adjusted $3.43 a share on sales of $1.53 billion.
Nvidia Stock Technical Ratings
On the stock market today, Synopsys stock popped more than 7% to near 449.55. Nvidia…
