Here's Why Shares in Synopsys Soared Today
Shares in electronic design automation (EDA) and engineering simulation software company (NASDAQ: SNPS) rose by 10.6% as of noon ET today. The big move comes as a consequence of the announcement that Nvidia would invest $5 billion in stock, and the two companies would collaborate to develop "custom data center and PC products that accelerate applications and workloads across hyperscale, enterprise, and consumer markets," according to Nvidia.
Intel and Synopsys are long-term partners , and the market is pricing in an increased level of demand from Intel for EDA solutions as it collaborates with Nvidia to develop chips.
This is a particularly pertinent consideration, because Synopsys recently disappointed the market with its third-quarter earnings report. One of the three issues that Synopsys CEO Sassine Ghazi highlighted on the earnings call was "challenges at a major foundry customer are also having a sizable impact on the year."
Source Fool.com
Synopsys Inc. Stock
The stock is one of the favorites of our community with 35 Buy predictions and 2 Sell predictions.
As a result the target price of 538 € shows a positive potential of 39.4% compared to the current price of 385.95 € for Synopsys Inc..
