My third choice is Synopsys. It is a large-cap, but it is a similar company: they sell the architecture software for semiconductor chips. Okay . Good value at the moment. And once again , the same idea, not much debt.
I think they paid off about three and a half billion in debt in the first half of the year. So the same story, only in a large-cap segment. I think that's good.
Um, now I want to jump into stock number three. Stock number three is one that uh also has seen quite of a a drop uh from year to date. The stock is down roughly 17% from its overall 52- week peak.
The stock is down nearly 25% and that is Synopsis ticker SNPS.
Now, Synopsis is a company that helps it's a software player that helps with the signing of chips. Now, to me, there's two reasons why I like Synopsis right now. Well, three reasons.
First, let's talk about valuation. I was looking at forward PE valuation. This is a software company trading in my opinion at hardware levels. Neil forward PE of 23.56. That's around 23, right?
you again this is typically typically these software EDAs trade at north of 30 sometimes even north of 40
Um, now I want to jump into stock number three. Stock number three is one that uh also has seen quite of a a drop uh from year to date. The stock is down roughly 17% from its overall 52- week peak.
The stock is down nearly 25% and that is Synopsis ticker SNPS.
Now, Synopsis is a company that helps it's a software player that helps with the signing of chips. Now, to me, there's two reasons why I like Synopsis right now. Well, three reasons.
First, let's talk about valuation. I was looking at forward PE valuation. This is a software company trading in my opinion at hardware levels. Neil forward PE of 23.56. That's around 23, right?
you again this is typically typically these software EDAs trade at north of 30 sometimes even north of 40
and the third is going to be Synopsis, ticker SNPS. And then Synopsis is one in the software space that I believe can actually benefit dramatically from the agentic tools that we're seeing progress in the AI market right now.
Okay, moving on to the third holding. We are actually going to leave behind the expensive data center builders for a second to look at a software foundation play that makes the entire chip industry even possible.
And that is in Synopsys, ticker symbol SNPS, which at $2.2 billion now makes up around 3.4% of Nvidia's entire portfolio.
Synopsis, this was the only one of the group that did not perform well in after hours. Down about 3% at one point it was down about 7%. So, it did bounce back. Um, but it's been in a downtrend.
It was honestly one of the stocks I probably would have suggested uh that you be very careful with because it was downtrending relative to its software peers.
