By Lee Samaha
Publication Date: 2025-12-06 15:33:00
An expanded partnership deal and a $2 billion investment raised confidence in this company’s long-term growth prospects.
Shares in Synopsys (SNPS +0.65%) rose by 11.7% last week. There’s little doubt as to the reason why: the announcement of an expanded strategic partnership with Nvidia, which involved Nvidia investing $2 billion in Synopsys stock.
Synopsys goes for growth.
The deal makes perfect sense for Synopsys’ long-term growth aspirations, which center on its silicon-to-systems approach. The “silicon” part originates from its electronic design automation (EDA) solutions, which help designers research and develop chips. The “systems” part derives from the engineering simulation software business acquired through the acquisition of Ansys earlier in the year.
Today’s Change
(0.65%) $3.02
Current Price
$466.76
Key Data Points
Market Cap
$87B
Day’s Range
$464.37 – $471.12
52wk Range
$365.74 – $651.73
Volume
1.5M
Avg Vol
3.1M
Gross Margin
75.18%
Dividend Yield
N/A
The idea is that customers can design chips using Synopsys EDA and then test the results of the systems and products they create using engineering simulation software. Given that chip design is moving far beyond just semiconductor companies, many of which will be Ansys customers, there’s a major opportunity for Synopsys to expand its total addressable market (TAM) with the acquisition of Ansys.
Where Nvidia fits in
There’s also a significant opportunity arising from the Nvidia partnership, whereby Synopsys’ intended expansion…
