Nvidia invests $2 billion in synopsys to strengthen chip design partnership

Nvidia has purchased a 2.6% stake in Synopsys for $2 billion, deepening its collaboration on chip design and AI technology integration.

Nvidia Corp. is reinforcing its strategic partnership with one of the leading developers of chip design software. The deal, executed at $414.79 per share, aims to integrate Nvidia’s tools into Synopsys’ platform, deploy AI agents, coordinate joint marketing initiatives, and accelerate chip development for automotive, aerospace, industrial, and energy sectors. Synopsys provides essential software for designing and verifying chips used in modern processors, including those powering Nvidia’s AI systems, and counts Alphabet Inc., Tesla Inc., and other major tech companies among its clients.

Shares of Synopsys jumped 7.4% in pre-market trading following the announcement, while Nvidia’s stock slipped slightly, reflecting cautious investor sentiment around large-scale investments and potential “circular” deals within Nvidia’s ecosystem. Analysts note that the investment strengthens Nvidia’s position in the semiconductor supply chain and reinforces Synopsys as a key player in chip design.