A regulatory filing revealed that NVIDIA has purchased a significant holding in Synopsys, sending the electronic design automation software provider’s stock higher in early trading. The disclosure lists a position of 4.82 million Synopsys shares, with the stake valued at slightly more than $2 billion, according to the filing.
Following the filing, Synopsys stock rose about 3% on Wednesday morning. The new position elevates NVIDIA to the rank of the sixth largest shareholder in the company by reported holdings.
The stake announcement arrives against a backdrop of weakness in Synopsys shares this year. The stock has declined roughly 10% year-to-date, a move the filing notes has occurred as software stocks broadly have encountered selling pressure. That weakness in the software sector has been attributed in the market to concerns about potential disruption from artificial intelligence technologies.
Market participants may read NVIDIA’s purchase as a vote of confidence in Synopsys’ long-term prospects. As a major chip designer, NVIDIA’s investment could be interpreted as an indication that Synopsys’ electronic design automation tools remain important to semiconductor development workflows. The filing itself does not describe any strategic partnership or operational collaboration tied to the stake.
Neither company has issued a public statement about the equity position or about whether the investment is accompanied by any strategic agreement. The filing provides the regulatory disclosure of the position but does not elaborate on NVIDIA’s intentions beyond the ownership reported.
In sum, the filing documents a multi-billion dollar stake that has been reflected in a modest uptick in Synopsys shares, while broader questions about software sector performance and AI-related disruption remain part of the market context for the stock.
Key details
- NVIDIA reported ownership of 4.82 million shares of Synopsys, valued at over $2 billion.
- The stake makes NVIDIA the sixth largest shareholder in Synopsys by reported holdings.
- Synopsys stock rose approximately 3% on the filing; it is down about 10% year-to-date amid sector-wide pressures.