Should NVIDIA’s US$2 Billion AI Partnership And Synopsys’ Strong Q4 Results Require Action From Synopsys (SNPS) Investors?

Should NVIDIA’s US Billion AI Partnership And Synopsys’ Strong Q4 Results Require Action From Synopsys (SNPS) Investors?

By Simply Wall St
Publication Date: 2025-12-13 18:10:00

  • In December 2025, Synopsys reported fourth-quarter revenue of US$2,254.86 million and basic EPS from continuing operations of US$2.42, alongside issuing fiscal 2026 guidance that points to higher full-year revenue and GAAP EPS.

  • At the same time, NVIDIA deepened its collaboration with Synopsys by investing US$2.00 billion for a minority stake and committing to jointly develop AI- and GPU-accelerated engineering tools spanning chip design through complex system simulation.

  • Next, we’ll examine how NVIDIA’s US$2.00 billion investment and expanded AI collaboration could reshape Synopsys’ existing investment narrative.

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To own Synopsys, you need to believe in its role as a core enabler of AI era chip and system design, now expanded from silicon into full engineering workflows after the Ansys acquisition. The immediate upside focus is on delivering against FY 2026 guidance and realizing early Ansys synergies, while the biggest near term risk is execution and profitability pressure as Synopsys digests a large deal and restructures its portfolio. The NVIDIA investment does not remove that risk, but it reinforces the AI centric growth angle.

The most relevant recent announcement is NVIDIA’s US$2.00 billion purchase of Synopsys shares and the…