SNPS — All updates

Two companies that we started talking about at the very beginning of Chip Stock Investor were Synopsys and Cadence Design Systems.

We're gonna be focusing on Synopsys today. I was setting this up as a Cadence versus Synopsys. We're gonna focus a little bit more on Synopsys today, because both of these companies have actually underperformed.

Um, now I want to jump into stock number three. Stock number three is one that uh also has seen quite of a a drop uh from year to date. The stock is down roughly 17% from its overall 52- week peak.

The stock is down nearly 25% and that is Synopsis ticker SNPS.

Now, Synopsis is a company that helps it's a software player that helps with the signing of chips. Now, to me, there's two reasons why I like Synopsis right now. Well, three reasons.

First, let's talk about valuation. I was looking at forward PE valuation. This is a software company trading in my opinion at hardware levels. Neil forward PE of 23.56. That's around 23, right?

you again this is typically typically these software EDAs trade at north of 30 sometimes even north of 40

Um, now I want to jump into stock number three. Stock number three is one that uh also has seen quite of a a drop uh from year to date. The stock is down roughly 17% from its overall 52- week peak.

The stock is down nearly 25% and that is Synopsis ticker SNPS.

Now, Synopsis is a company that helps it's a software player that helps with the signing of chips. Now, to me, there's two reasons why I like Synopsis right now. Well, three reasons.

First, let's talk about valuation. I was looking at forward PE valuation. This is a software company trading in my opinion at hardware levels. Neil forward PE of 23.56. That's around 23, right?

you again this is typically typically these software EDAs trade at north of 30 sometimes even north of 40

and the third is going to be Synopsis, ticker SNPS. And then Synopsis is one in the software space that I believe can actually benefit dramatically from the agentic tools that we're seeing progress in the AI market right now.

Okay, moving on to the third holding. We are actually going to leave behind the expensive data center builders for a second to look at a software foundation play that makes the entire chip industry even possible.

And that is in Synopsys, ticker symbol SNPS, which at $2.2 billion now makes up around 3.4% of Nvidia's entire portfolio.

and then synopsis which is also in the software space when it comes to chip design

In the meantime, we should be getting Salesforce, Synopsis, Crowd Strike, uh, and a few others that are actually going to be pretty important.

We don't have synopsis yet. That's a 1%.