Nvidia investment implies attractive risk/reward for Synopsys, says Mizuho

Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $600 price target on Synopsys (SNPS) after the company and Nvidia (NVDA) announced an expanded partnership, under which Nvidia would invest $2B in Synopsys. The firm said the investment implies attractive risk/reward in Synopsys shares and further reinforces the positive thesis in the firm’s initiation report, where it views electronic design automation tools as a critical enabler of the AI revolutions. The firm added that it also views the investment as a strategic positive, enabling Synopsys and Ansys (ANSS) to deliver more impactful products leveraging Nvidia CUDA acceleration and physical AI expertise that should drive total addressable market expansion.