2024-03-25 11:24:41 ET
Summary
- The semiconductor industry has evolved significantly since its inception, and is now characterized by specialization and deep domain expertise.
- Synopsys is a quality compounder but recent AI hype has led to an ambitious valuation that doesn't reflect a reasonable growth expectation.
- Despite the current stretched valuation, this is a business I'll be keeping a close eye on as I'd like to open a position.
- Synopsys's acquisition of Ansys signals they believe advanced packaging is here to stay.
Setting the Stage: Industry Evolution
The semiconductor industry has evolved immensely since the first working transistor came out of Bell Labs in 1947. This single invention has reshaped the world as we know it, enabling generations of innovation and the global connectivity of the internet....
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Synopsys: A Quality Compounder With A Stretched Valuation