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Nvidia’s $2 Billion Investment in Synopsys
Nvidia (NASDAQ: NVDA) has announced a $2 billion investment in Synopsys (NASDAQ: SNPS), a leader in electronic design automation (EDA). This strategic collaboration, revealed on Monday, aims to enhance Nvidia’s Compute Unified Device Architecture (CUDA) capabilities and advance development in areas like agentic AI and digital twins.
The investment, representing approximately 3% of Nvidia’s total AI-centric holdings, comes amid a backdrop of Nvidia’s significant investments, totaling over $62 billion across 117 companies since early 2024. Despite Synopsys’ recent fiscal 2025 third-quarter earnings miss, with revenues of $1.74 billion (up 14% year-over-year) and a 35% drop in stock value due to reduced fourth-quarter guidance, Nvidia remains bullish on the potential of their partnership.
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