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Artificial intelligence chipmaker 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 reengineer 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 stock dipped more than 1% to 175.06. Synopsys stock had retreated 13% in 2025 as of Friday's market close while Nvidia stock was up 32%.
Further, Synopsys stock holds an Accumulation/Distribution Rating of E. That gauges institutional buying and selling of the stock over the past 13 weeks. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Synopsys shares hold a disappointing IBD Composite Rating of 43 out of a best-possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Meanwhile, Nvidia stock holds an Accumulation/Distribution Rating of D-minus. Also, Nvidia shares hold a IBD Composite Rating of 99 out of a best-possible 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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