Massive Software Merger Wants to Bring AI to the World -- Synopsys Acquires Ansys

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  • Опубліковано 16 січ 2024
  • Watch our video: "Investing in Semiconductor Manufacturing Equipment Stocks: The Ultimate 2024 Guide" 👉 • AI Supercycle: Your Ul...
    It’s official! Top semiconductor design software company Synopsys (SNPS) has announced its intent to acquire Ansys (ANSS), instantly making this one of the largest technology merger and acquisition deals ever. The rationale for the tie-up? Bringing AI and advanced software-powered applications to the world.
    In this episode of Chip Stock Investor, Nick and Kasey discuss details of the deal, why Synopsys and Ansys together makes sense, but particular risks investors need to be aware of in the coming years. They also compare Synopsys with their other semiconductor design software investment Cadence Design Systems (CDNS), and how they’re handling these two stocks right now.
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    #ansys #synopsys #eda #semiconductors #chips #investing #stocks #finance #financeeducation #silicon #artificialintelligence #ai #financeeducation #chipstocks #finance #stocks #investing #investor #financeeducation #stockmarket #chipstockinvestor #fablesschipdesign #chipmanufacturing #semiconductormanufacturing #semiconductorstocks
    Nick and Kasey own shares of Synopsys and Cadence Design Systems

КОМЕНТАРІ • 32

  • @musadawood2655
    @musadawood2655 6 місяців тому +6

    You have previously said Cadence & Synopsis make up a duopoly in EDA. But I have found Altium, Aligent Tech, RSLogix have a larger market share in EDA than CDNS and SNPS. Can you please explain.

    • @michaelbrown-nz4on
      @michaelbrown-nz4on 6 місяців тому +1

      Great research, I’m interested in the answer to this question also 🤔

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому +1

      Hi Musa, we've done a number of videos on this. There is overlap between the top 3 EDA companies, Synopsys, Cadence, and Siemens EDA (formerly Mentor). Synopsys and Cadence especially differentiate with their own patent portfolios. Altium is small. Autodesk has a small rudimentary EDA tool. Agilent doesn't have any EDA to our knowledge. We are working on a write up for Keysight, which should be out next week, but we did do a video on it last year as well.

  • @bigmountain19
    @bigmountain19 6 місяців тому +1

    Thanks for the update

  • @TheChinaPlay
    @TheChinaPlay 6 місяців тому +1

    Thanks, very helpful

  • @Flogervideo
    @Flogervideo 6 місяців тому +1

    Thanks for the insights!

  • @user-sm9ms6yw9p
    @user-sm9ms6yw9p 6 місяців тому +1

    Thanks you

  • @chrisfilipowicz3371
    @chrisfilipowicz3371 6 місяців тому +1

    thanks

  • @alexsassanimd
    @alexsassanimd 6 місяців тому +1

    You guys make an awesome team. Thank you for these videos

  • @shannonoliver7992
    @shannonoliver7992 6 місяців тому +1

    Great analysis as always. What a fast-paced industry; you really have to stay on top of things. I'm sure this won't be the last of big acquisitions in the space. Everybody wants a piece of the AI party. The next ten years will be very interesting.

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      Indeed, not likely to be the last! AI and HPC are so complex, lots of companies will want a piece of it, as you mention Shannon. The top players will have lots of growth outlets.

  • @reggie2261
    @reggie2261 6 місяців тому +1

    Like the intro breaking news from regular programming, indeed worthy of discussion as SNPS had grown into a big part of my portfolio 124% growth since I bought in. Cadence and Siemens had interest as well as we know now so ANSS had something advantageous to EDA. It’s a wait and see certainly not selling now but China to me is hindrance on regulatory approval.

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому +1

      China's SAMR will likely be the big question mark, but we really think other hurdles will emerge as well. The EU and UK have been watching these big mergers closely as well.

  • @geordiehawkins7372
    @geordiehawkins7372 6 місяців тому +1

    Great insight on the possible merger. Shoot I had SNPS on my watchlist with a limit order set in the high $470's. Might pull that now and watch from the sidelines for a bit. Stock price could get volatile over the near term. I may pivot to CDNS if their price comes down a bit.

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      We are in the same boat for the moment, anxious to see some earnings numbers!

  • @rahulchahal3824
    @rahulchahal3824 6 місяців тому +2

    SNPS & CDNS are my kind of stocks. However, I agree with your concerns.

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      CDNS still looks clean, let's see how earnings go!

    • @11101Jason
      @11101Jason 6 місяців тому

      Agreed, on both counts, I want to jump in on CDNS as soon as I hear the green light...I'll be waiting for your announcement on that 😊.

  • @MeBee-fl2ow
    @MeBee-fl2ow 6 місяців тому +1

    hey! What impact may it have on CDNS and the duopoly? What merger might be interesting for CNDS? KEYS is not that great as ANSS? (other industry) Would appreciate your opinion

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      We'll do an update after CDNS earnings. We hope no big merger for them!

  • @sibasispanda8948
    @sibasispanda8948 6 місяців тому +1

    Enjoyed your assessment and you both make a phenomenal team. What are the risks of buying Ansys if the merger does not go through?

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      Hi there, the main risk would be the buyout premium gets erased for ANSS if the merger falls through

  • @Papercutzem
    @Papercutzem 6 місяців тому +1

    Yes🎉🎉🎉

  • @Mujeeb-Ur-Rehman-ct7uh
    @Mujeeb-Ur-Rehman-ct7uh 2 місяці тому

    Does Synopsys work with Semiconductor fabs?

    • @chipstockinvestor
      @chipstockinvestor  2 місяці тому +1

      Have you seen this industry explainer video? ua-cam.com/video/DGRk-lYlnjU/v-deo.html

  • @Dr_-Bishop
    @Dr_-Bishop 6 місяців тому +1

    Thank you for your job. What's going on with Arcadium Lithium after the merger?

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому

      Check out the community board, article is posted!

  • @IwanJebiewdenko-bn6zk
    @IwanJebiewdenko-bn6zk 6 місяців тому +1

    What’s your thoughts on Ambarella (AMBA)?

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому +1

      We've covered a few times, followed the company for years. They can't seem to hold onto successes and build on them.

  • @Capt.daveGe
    @Capt.daveGe 6 місяців тому +1

    Market does what market does....crazy move to get back to near ath. So, maybe we trade flat from here...? Lol

    • @chipstockinvestor
      @chipstockinvestor  6 місяців тому +1

      It is wild. We think it could be sideways-ish for a bit because of the pending merger. Will be plenty of drama!