Synopsys Pops After Nvidia Takes $2 Billion Stake

• Jensen Huang reportedly said the industrial economy is undergoing a shift from CPU-based computing to GPU-led accelerated computing.
• He noted it has taken years to build the software stack needed for EDA and SDA applications to run efficiently on GPUs.

Nvidia (NVDA) on Monday announced a $2 billion investment in Synopsys (SNPS), part of an expanded strategic partnership aimed at accelerating design and engineering across semiconductors, aerospace, automotive, and industrial sectors.

The agreement pairs Nvidia’s AI and accelerated computing capabilities with Synopsys’ engineering software to help teams design, simulate, and verify products faster. Nvidia’s investment is part of the broader collaboration.

Synopsys’ stock rose nearly 8% and was among the top trending tickers on Stocktwits. Retail sentiment around the company on the platform improved to ‘bullish’ from ‘neutral’ territory over the past day, while chatter remained at ‘normal’ levels.

Nvidia’s stock fell as much as 1.7% in pre-market trade amid weakness in the broader market. On Stocktwits, retail sentiment around the company remained in ‘bullish’ territory amid ‘normal’ levels of chatter. 

AI Tools To Streamline Engineering

Synopsys will leverage Nvidia’s CUDA-X libraries and AI-Physics tools to speed compute-intensive tasks, including chip design, molecular simulations, and optical or electromagnetic analyses.

The companies are also integrating Synopsys’ AgentEngineer with Nvidia’s AI stack, enabling automated workflows in electronic design and simulation. Nvidia Omniverse and Cosmos will be used to create precise virtual models for testing products in sectors such as robotics, energy, and healthcare.

New Way Of Computing

The partnership aims to deliver these AI-driven solutions to engineering teams worldwide. “As you know, the world's 100 trillion dollar industry is largely industrial and enterprise to enterprise,” Nvidia CEO Jensen Huang said in an interview with CNBC. “These are enterprise, serious, industrial enterprise applications that are now being transformed by this platform shift.”

According to him, the industry is going through a platform shift from classical, general purpose computing running on CPUs to a new way of computing running on GPUs. “It's taken this long for us to create the software stack necessary for Synopsys and the rest of the EDA industry and SDA industry, in order for them to accelerate the software that they've historically only ran on CPUs,” Huang said.

Read also: Peter Schiff Counters Musk-Saylor Bitcoin Claims – ‘You Turn Valuable Energy Into Nothing’

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