Here's Why Shares in This Nvidia Partner Soared This Week

Shares in Synopsys (NASDAQ: SNPS) rose by 11.7% last week. There's little doubt as to the reason why: the announcement of an expanded strategic partnership with Nvidia, which involved Nvidia investing $2 billion in Synopsys stock. The deal makes perfect sense for Synopsys' long-term growth aspirations, which center on its silicon-to-systems approach. The "silicon" part originates from its electronic design automation (EDA) solutions, which help designers research and develop chips. The "systems" part derives from the engineering simulation software business acquired through the acquisition of Ansys earlier in the year.The idea is that customers can design chips using Synopsys EDA and then test the results of the systems and products they create using engineering simulation software. Given that chip design is moving far beyond just semiconductor companies, many of which will be Ansys customers, there's a major opportunity for Synopsys to expand its total addressable market (TAM) with the acquisition of Ansys.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool