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Synopsys jumps after Nvidia announces $2 billion investment as part of strategic partnership with the electronic design automation firm

Synopsys spiked after Nvidia announced a $2 billion purchase of its stock as part of a partnership between the two firms to “design, simulate, and verify intelligent products with greater precision, speed, and at lower cost.”

Synopsys is one of a handful of electronic design automation firms that help chipmakers make chips, and as such, sits at a fairly narrow choke point in the semiconductor industry.

Nvidia CEO Jensen Huang has previously laid out a vision to evolve from generative AI to physical AI. This strategic partnership seems geared toward just that: using generative AI to enhance and speed the ability to pioneer AI solutions in the real world, where the engineering demands grow even more complex.

Per the press release, the two companies will also “collaborate in engineering and marketing activities” related to their joint endeavors.

Nvidia purchased Synopsys shares at $414.79 apiece. In premarket trading, the stock was recently up 7.3% to $448.50.

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Tasha Matsumoto

Stocks and bitcoin slide as investors’ appetite for risk wanes

Stocks broke their five-session winning streak.

A grizzly bear attempts to open Christmas presents given to them by their keepers, at the La Fleche Zoo, western France, on December 23, 2024.

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Traders are pricing in a big swing in AI chip market share to Broadcom from Nvidia

The story within the AI trade lately has been: Google’s a winner, and OpenAI is a... well, to be kind, non-winner.

Companies closely tied to the former, like Broadcom, which codesigns the TPUs that Gemini 3 was trained on, have benefited from their relationship with the hyperscaling search giant. Conversely, Nvidia, which sells to both Google and OpenAI but is besieged with worries about how custom chips might impact its AI market share (and profitability), has been selling off.

“NVDA stock is now trading at its widest ever ~40% discount to AVGO’s current 42x forward PE versus historical -10%/+7% discount/premium over the past 1/2 yrs, respectively,” Bank of America analyst Vivek Arya wrote. “In other words, consensus has already implicitly shifted at least 10+ points of (2H26E/27E) AI market share towards AVGO, conceptually.”

The abrupt shift in valuation amid this divergent price action is reversing course on Monday: Nvidia’s up about 1.5% as of 10:55 a.m. ET, while Broadcom is off 2.6%.

Max Knoblauch10h

Air taxi companies are in the red as Goldman initiates coverage on Archer, Joby, and Beta

Goldman Sachs initiated coverage of the major US air taxi companies on Monday, including Joby Aviation, Archer Aviation, and Beta Technologies. All three are trading down as the bank’s first notes hit investor inboxes.

Though Joby “appears to be in pole position” on certification, analyst Anthony Valentini gave the stock a “sell” rating and a $10 price target — 30% below the value of Joby’s stock at Friday’s close. Valentini wrote that it’s unclear where competitors stand in the process.

Goldman gave Archer a “neutral” rating and an $11 price target, highlighting the company’s ability to cut spending. Beta Technologies, which went public last month, received a “buy” rating and a $47 price target.

Strategy announces $1.44 billion “US dollar reserve” to avoid participating in bitcoin fire sale

The digital treasury company also lowered its outlook for full-year operating income, net income, and earnings per share by more than 90% compared to its October 30 guidance.

Saylor

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Matt Phillips11h

Crypto-adjacent stocks drop to start the week

Crypto-adjacent shares slid in early trading along with unprofitable tech company shares, as animal spirits ebbed to start the US trading week.

Goldman Sachs’ basket of bitcoin-sensitive stocks — heavily weighted toward Coinbase and treasury companies like MARA Holdings and Strategy — was down more than 3% early, reflecting another tumble in bitcoin overnight, though bitcoin prices stabilized a bit in early US trading. Robinhood Markets — shares of which have at times taken cues from the price of crypto, which is traded on the brokerage app — was also down.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company.)

It would take a talented druid and a flock’s worth of bird entrails to the divine precisely what’s driving the downdraft. But S&P’s recent assessment of the vulnerability of Tether’s stablecoin, USDT — the world’s largest of these supposedly safer forms of crypto — to the bitcoin sell-off might be playing a role.

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