Mentioned:
NVDA -6.20% SNPS -6.00% INTC -11.47% AMD -10.80% TSM -6.67% GOOG -0.89%

Nvidia is buying billions of dollars of stock in a publicly traded company. But, why?

What’s happening:‍

  • Nvidia (NASDAQ: NVDA) has taken a $2B USD equity stake in Synopsys (NASDAQ: SNPS) as part of a new strategic partnership

By the numbers:‍

  • Nvidia purchased common shares of Snyopsys at a price of $414.79 USD per share

Why it matters:‍

  • Synopsys is one of the single most important companies in the entire world for electronic design automation and semiconductor intellectual property for advanced designs of both CPUs and GPUs

Going deeper:‍

  • Nvidia and Synopsys have both publicly stated they will collaborate on using Nvidia’s GPUs to be fully integrated with Synopsis’ software to accelerate their engineering process and reduce design costs
  • Intel (NASDAQ: INTC), AMD (NASDAQ: AMD), TSMC (NYSE: TSM) and Google (NASDAQ: GOOG) all use Synopsys for the design and verification of new breakthrough chips

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