Synopsys (SNPS) surged 7.99% in pre-market trading on Monday following the announcement of a $2 billion investment by Nvidia (NVDA) and a strategic partnership between the two companies. The investment, made at $414.79 per share, signals strong confidence in Synopsys' role in the semiconductor design software space.

The partnership aims to integrate Nvidia's AI and accelerated computing technologies with Synopsys' engineering solutions, enabling more efficient and cost-effective product design and simulation. The collaboration includes joint engineering, marketing, and go-to-market initiatives, which are expected to drive long-term growth for Synopsys.

This investment is part of Nvidia's broader strategy to expand its influence in the AI ecosystem, having previously invested in companies like Intel and OpenAI. The move highlights Synopsys' critical position in the semiconductor design industry and its potential to benefit from the AI boom.