MW Synopsys gets an Nvidia boost. Here's what to know.

By Emily Bary

Nvidia has made a $2 billion investment in Synopsys and has a new partnership with the maker of chip-design software

Synopsys shares have fallen so far in 2025 but are primed for a Monday boost thanks to a new Nvidia investment.

While Alphabet has stolen some of Nvidia's thunder in the artificial-intelligence conversation lately, the chip giant still seems to have the power to create winners in the stock market.

Case in point: Shares of Synopsys $(SNPS)$ were rising more than 3% in morning trading Monday on the heels of new partnership between the companies. Nvidia (NVDA) also is investing $2 billion in the maker of chip-design software.

Through the partnership, Synopsys "will further accelerate and optimize its broad portfolio of compute-intensive applications spanning chip design, physical verification, molecular simulations, electromagnetic analysis optical simulation and more," according to a press release.

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The companies will work together on AI engineering and developments related to physical AI. More specifically, they see opportunities to "connect the physical and digital worlds through digital twins," which are virtual versions of real-life assets.

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Finally, the companies intend to work on go-to-market initiatives in tandem, leveraging Synopsys' universe of direct sellers and channel partners.

"Our partnership with Synopsys harnesses the power of Nvidia accelerated computing and AI to reimagine engineering and design - empowering engineers to invent the extraordinary products that will shape our future," Nvidia CEO Jensen Huang said in a release.

Shares of Nvidia were down 1.6% in premarket action on Monday. Shares of Cadence Design Systems $(CDNS)$, a Synopsis rival, were off 1.3%.

This isn't the first time that Nvidia is plunking down cash to invest in a partner. It made a $5 billion investment in Intel $(INTC)$ earlier this year, after the companies said they'd work together on designing custom data-center and personal-computer chips. Nvidia also pledged to invest up to $100 billion in OpenAI.

Investors will be looking to see if the Nvidia investment and partnership serve as a long-running catalyst for Synopsys shares, which had lost 14% in the year-to-date through Friday's close.

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-Emily Bary

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December 01, 2025 10:56 ET (15:56 GMT)

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