Synopsys (NASDAQ: SNPS) stock surged Monday after Nvidia (NASDAQ: NVDA) unveiled a sweeping strategic partnership that includes a $2 billion investment in the Silicon Valley software company.
The announcement sparked an immediate rally, lifting Synopsys shares to $438.49 and driving premarket trading even higher to $450, a 7.65% gain before the opening bell.
SNPS five-day stock price chart. Source: Google FinanceUnder the deal, Nvidia will acquire Synopsys common stock at $414.79 per share as part of a multi-year collaboration that blends Nvidia’s AI and accelerated computing technologies with Synopsys’ engineering and chip-design software.
At the center of the partnership is a plan to accelerate Synopsys applications using Nvidia’s CUDA-X libraries and AI-Physics technologies, expand the use of agentic AI in engineering, and develop advanced digital-twin capabilities through Nvidia Omniverse.
Need to boost productivity
The companies also aim to deliver cloud-ready solutions to boost productivity for engineering teams grappling with increasing workflow complexity and rising development costs.
Synopsys CEO Sassine Ghazi said the partnership will “re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations,” highlighting its broader industry significance.
Both companies will jointly pursue go-to-market initiatives to expand adoption of GPU-accelerated engineering tools across sectors from semiconductors to advanced manufacturing.
They emphasized that the agreement is non-exclusive, allowing each to continue collaborating across the broader semiconductor and electronic design automation ecosystem.
Featured image via Shutterstock
Source: https://finbold.com/this-stock-rockets-after-massive-nvidia-2-billion-investment/
