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6. Synopsys, Inc. (NASDAQ:SNPS)

Number of Hedge Fund Holders In Q3 2024: 53

Synopsys, Inc. (NASDAQ:SNPS) is a semiconductor design products company. This has meant that the shares have been lackluster in 2024 and have gained a modest 9.35% year-to-date. While Synopsys, Inc. (NASDAQ:SNPS) from firms like NVIDIA designing their AI chips, it depends on the broader state of the semiconductor industry for its fortunes. At the same time, the key role that Synopsys, Inc. (NASDAQ:SNPS) plays in the chip industry means that it can see catalysts once the technology industry’s drive to replace NVIDIA’s chips with custom solutions picks up the pace. Greater chip design activity creates tailwinds for Synopsys, Inc. (NASDAQ:SNPS), and the firm also benefits from the fact that it has a close partnership with Intel, has signed an AI deal with TSMC, and is acquiring an engineering software firm to diversify its revenue base.

TimesSquare Capital Management mentioned Synopsys, Inc. (NASDAQ:SNPS) in its Q1 2024 investor letter. Here is what the firm said:

“We had been trimming Synopsys, Inc. as its market capitalization grew and it approached our price target. This quarter, Synopsys confirmed its plans to acquire ANSYS, Inc. Though the deal has long-term strategic benefits, in the near term we believe that will weigh on overall growth for Synopsys, add notable leverage to its balance sheet, and create more volatility for its shares. As a result, we sold our position.”