SNPS - 1 Stock Secretly Fueling the AI Revolution

2024-06-17 08:13:00 ET

Nvidia rightfully commands the spotlight when it comes to generative artificial intelligence (AI) right now. But behind these powerful Nvidia chips spawning new software features, business automation, and accelerated computation, there's a suite of design software tools used by the engineers to make it all possible: electronic design automation (EDA).

Synopsys (NASDAQ: SNPS) is the leader in EDA software, boasting a large portfolio of intellectual property and patents -- absolutely foundational stuff to the semiconductor industry and to AI development. Here's why the stock is, at the very least, worthy of your attention.

Synopsys is a powerful platform business. Like a select few other EDA businesses (including Cadence Design Systems , the second-largest player), Synopsys combines various software tools and specialized hardware for engineers to design and verify chip and computing systems. Be it Nvidia, a data center customer, or one of the many other semiconductor and computing businesses, it's highly likely Synopsys' tools are being used in engineering teams' design work.

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