We recently compiled a list of the Top 8 AI News Updates Investors Shouldn’t Miss. In this article, we are going to take a look at where Synopsys, Inc. (NASDAQ:SNPS) stands against the other AI stocks.
On March 19th, the stock market bounced back after the US Federal Reserve kept interest rates unchanged at 4.25% to 4.5%. The Fed also anticipated two rate cuts this year despite elevated inflation. The S&P 500 index was up over 1%, while the Nasdaq Composite jumped by well over 200 points. The rally was led by the magnificent seven stocks after weeks of market declines amid trade wars and disappointing economic data.
Elsewhere, AI continues to transform industries and individual lives, from AI nurses reshaping hospital care to schools reporting that students are learning faster and more effectively with AI.
Furthermore, AngelList CEO Avlok Kohli claimed that all software companies are AI companies now.
“The enthusiasm into AI actually carries over into everything, which effectively impacts all startups,” said Kohli when asked if investors are as excited about emerging startups outside of AI.
Meanwhile, security risks surrounding AI continue to loom. Computer scientist and AI pioneer Fei-Fei Li co-authored a report suggesting that lawmakers should consider AI risks that “have not yet been observed in the world” when devising AI regulations. The report highlighted that the novel risks posed by AI could require legislation that compels AI developers to publicly report their safety tests and security protocols.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 2024 database of over 1000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a tech engineer soldering a modern system-on-chip circuit board in a laboratory setting.
Synopsis, Inc. (NASDAQ:SNPS)
Number of Hedge Fund Followers: 72
Synopsys, Inc. (NASDAQ:SNPS) develops software and tools to help engineers in the semiconductor manufacturing industry design and verify semiconductors. The electronic design automation company also focuses on silicon intellectual property and software security.
On March 19th, Synopsys, Inc. (NASDAQ:SNPS) announced the AgentEngineer technology focusing on AI agents that can execute specific tasks in chip design, like testing circuitry. In time, the company expects the technology to assist in the development of complicated systems with different chips and components to accelerate delivery times.
“AI plays a huge role, because your R&D capacity is not growing. You’ve got a certain team, you’re not going to just double it, triple it, quadruple it. So you have to increase this R&D capacity.”
– said Shankar Krishnamoorthy, head of the technology and development group at Synopsys Inc.
Overall, SNPS ranks 2nd on our list of top AI news updates investors shouldn’t miss. While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNPS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
