Nvidia Stock: AI Leader Invests $2 Billion In Chip Design Firm Synopsys

Artificial intelligence chip maker Nvidia NVDA said Monday it has invested $2 billion in the electronic design automation company summary (SNBS). Synopsys stock jumped on the news while Nvidia stock fell amid a broad market decline.

Furthermore, Synopsys and Nvidia plan to collaborate on engineering and marketing activities. Nvidia has ramped up its investments in partner companies, including artificial intelligence model maker OpenAI.

“The complexity and cost of developing the next generation of intelligent systems requires engineering solutions with deeper integration of electronics and physics, which are accelerated by artificial intelligence and computing capabilities,” said Sasin Ghazi, CEO of Synopsy, in a press release. “No two companies are better positioned to deliver end-to-end AI-powered systems design solutions than Synopsys and Nvidia. Together we will re-engineer engineering and enable innovators everywhere to realize their innovations more efficiently.”

Synopsys in September reported third-quarter financial results that severely missed Wall Street targets and provided mixed guidance.

The Sunnyvale, California-based company earned adjusted $3.39 per share on sales of $1.74 billion in the quarter ended July 31. Analysts polled by FactSet had expected earnings of $3.80 per share on sales of $1.77 billion. In the same period a year earlier, Synopsys had adjusted earnings of $3.43 per share on sales of $1.53 billion.

Nvidia stock technical evaluations

On the stock market today, Synopsys stock rose more than 7% to close to 449.55. Nvidia stock fell more than 1% to 175.06. Synopsys stock is down 13% in 2025 as of market close on Friday while Nvidia stock is up 32%.

Furthermore, Synopsys stock carries an Accumulation/Distribution rating of E. which measures institutional buying and selling of the stock over the past 13 weeks. A+ indicates heavy institutional buying; E means heavy selling. Think of C as neutral.

Also, Synopsys shares received a disappointing IBD Composite Rating of 43 out of a best possible score of 99. compound classification It is a combination of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Meanwhile, Nvidia stock carries a D-minus accumulator/distribution rating. Also, Nvidia stock has an IBD Composite Rating of 99 out of the best possible 99. compound classification It is a combination of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Follow Reinhardt Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.

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