Key Takeaways
- Nvidia and Synopsys announced an expanded partnership, with Nvidia making a $2 billion equity investment in the chip design software maker.
- The deal is giving Synopsys shares a boost Monday after a tough 2025 so far.
Chip design software maker Synopsys is the latest tech firm to see its stock surge on an AI partnership with Nvidia.
Shares of Synopsys (SNPS) jumped close to 7% Monday morning before paring back some of their early gains after the company said it’s deepening its ties with AI chip darling Nvidia (NVDA), which saw its shares climb around 1% in recent trading. (Read our daily markets coverage here.)
Nvidia is making a $2 billion equity investment in Synopsys as part of the deal, which the companies said will advance AI-accelerated tools for chip design and engineering.
“No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and NVIDIA,” Synopsys CEO Sassine Ghazi said. “Together we will re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations.”
Why This Matters
The deal with Synopsys comes after a flurry of partnerships for Nvidia in recent months that sent shares of companies involved higher, underscoring the AI chipmaker’s influence in the space.
The Nvidia partnership is giving Synopsys shares a welcome lift after a tough 2025 so far. Despite Monday’s gains, the stock is still down about 10% for the year, after taking a big hit in the wake of a weaker-than-expected earnings report in September.
Synopsys pointed to a slump in demand for its design IP for the performance, with Ghazi calling the third quarter a “transformational” period shaped by a “challenging geopolitical backdrop.” The company said at that time that it was “taking a more conservative view of Q4.”
Despite reporting quarterly earnings last month that topped analysts’ estimates, Nvidia’s shares have also been hit recently amid worries that tech giants are overspending on AI infrastructure. Its shares have added about a third of their value in 2025 so far.