Nvidia Invests $2 Billion in Synopsys to Advance AI Chip Design

Basio badr

ago 43 minutes

Nvidia Invests $2 Billion in Synopsys to Advance AI Chip Design

Nvidia has made a significant move by investing $2 billion in Synopsys, a leader in electronic design automation. This collaboration aims to enhance AI chip design and promote innovation within the tech industry.

Nvidia and Synopsys Partnership Details

Both companies plan to work closely on engineering and marketing initiatives. This partnership aligns with Nvidia’s strategy of increasing investments in companies focused on artificial intelligence, such as OpenAI.

Leadership Insights

Sassine Ghazi, CEO of Synopsys, emphasized the challenges of creating next-generation intelligent systems. He stated, “The complexity and cost demand engineering solutions that integrate electronics and physics with accelerated AI capabilities.” Ghazi believes that this collaboration can revolutionize engineering processes and empower innovators.

Financial Performance of Synopsys

In September, Synopsys reported its third-quarter earnings, which fell short of analysts’ expectations. The company recorded adjusted earnings of $3.39 per share on sales of $1.74 billion for the quarter ending July 31. This was below the anticipated $3.80 per share on sales of $1.77 billion. In the same quarter the previous year, it earned $3.43 per share with revenues of $1.53 billion.

Stock Market Reactions

Synopsys stock surged over 7%, nearing $449.55.
Nvidia stock dropped by more than 1%, settling at $175.06.
As of the last market close, Synopsys stocks were down 13% in 2025, while Nvidia experienced a 32% gain.

Investment Ratings

Currently, Synopsys holds an Accumulation/Distribution Rating of E, indicating significant selling activity. In contrast, Nvidia boasts an impressive Accumulation/Distribution Rating of D-minus, reflecting different investor sentiments. Furthermore, Nvidia holds a top IBD Composite Rating of 99, while Synopsys has a lower rating of 43 out of a possible 99.

This investment by Nvidia not only signals a commitment to advancing AI technologies but also underlines the vital role of strong partnerships in the rapidly evolving tech landscape.