Here's Why Shares in Synopsys Soared Today

Shares in electronic design automation (EDA) and engineering simulation software company Synopsys (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 Intel 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."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool