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.
My third choice is Synopsys. It is a large-cap, but it is a similar company: they sell the architecture software for semiconductor chips. Okay . Good value at the moment. And once again , the same idea, not much debt.
I think they paid off about three and a half billion in debt in the first half of the year. So the same story, only in a large-cap segment. I think that's good.
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.
