NVIDIA Pursues Advanced Chip Designs With $2 Billion Synopsys Investment

In Focus

• NVIDIA has bought a 2.6% stake in Synopsys
• Synopsis stock surged 7% on December 1, 2025, following the deal
• The two companies will collaborate in design and simulation of intelligent products

U.S. GPU maker NVIDIA is investing $2 billion in Synopsys common stock. According to Yahoo Finance, NVIDIA’s investment in Synopsis caused the stock of the chip design software provider to surge 7% in premarket trading. NVIDIA stock dropped by close to 2%.

NVIDIA’s Growing Investment in AI Firms

NVIDIA bought a stake in Synopsys at a time when investors have raised concerns over the circular nature of AI deals. The AI chipmaker became the most valuable company in the world after its market valuation reached $5 trillion in October 2025.

In recent months, the chip manufacturer has invested heavily in AI-related firms. For instance, the company has committed to invest $100 billion in OpenAI. In September 2025, NVIDIA secured a $5 billion stake in Intel in an investment that has become one of its most significant cross-investment deals in the global semiconductor sector this year.

In the latest investment, NVIDIA bought Synopsys stock at $414.79 per share, which is a discount of about 0.8% based on the November 28, 2025, closing price. NVIDIA’s $2 billion investment gives it a 2.6% stake in Synopsys.

A Strategic Partnership Between Synopsis and NVIDIA

As part of NVIDIA’s $2 billion chip design push, the two companies also announced a strategic partnership that will see them leverage each other’s strength. The collaboration will integrate NVIDIA’s accelerated computing with the leading engineering solutions developed by Synopsys. This will allow the tech companies to design, simulate, and validate intelligent products with greater speed, precision, and a lower cost.

“Our partnership with Synopsys harnesses the power of NVIDIA accelerated computing and AI to reimagine engineering and design, empowering engineers to invent extraordinary products that will shape our future,” NVIDIA Founder and CEO Jensen Huang said in a statement posted on the company’s website.

Partnership Supports Development of Holistic AI Systems

Synopsis is among the biggest providers of software and services for designing electronic components. In July 2025, it was among the firms that benefited after the U.S. lifted chip design software curbs on China. The company develops the software needed in the design of complex layout of billions of transistors and connectors for modern chips.

The software also verifies that the hardware will function as intended before production begins, a process that is critical in the production of AI chips such as those sold by NVIDIA. Synopsys views the NVIDIA EDA collaboration as critical in the delivery of holistic AI systems.

“The complexity and cost of developing next-generation intelligent systems demands engineering solutions with a deeper integration of electronics and physics, accelerated by AI capabilities and compute. No two companies are better positioned to deliver AI-powered, holistic system design solutions than Synopsys and NVIDIA,” Synopsys President and CEO Sassine Ghazi said in a statement posted on the NVIDIA website.

Ghazi added that the two companies will work together to “re-engineer engineering and empower innovators everywhere to more efficiently realize their innovations.”