Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

19. Synopsys, Inc. (NASDAQ:SNPS)

Growth Investment Ratio: 108%

Number of Hedge Fund Holders: 53

Synopsys, Inc. (NASDAQ:SNPS) is an American firm that provides semiconductor design tools and software. While semiconductor stocks have mostly fared well in 2024 due to tailwinds from AI demand, Synopsys, Inc. (NASDAQ:SNPS)’s shares are up by a lackluster 11.8% year to date. This is because the chip design tool segment is yet to see major interest from AI companies. However, Synopsys, Inc. (NASDAQ:SNPS) benefits from the fact that it is one of two major players in the design tool industry. Consequently, as evidenced by Amazon’s recent interest in a custom AI chip along with OpenAI rumored to be pursuing the same, Synopsys, Inc. (NASDAQ:SNPS) could see tailwinds in the future. The firm’s strong market position and industrial partnerships also position it well for a resurgence in the broader, non-AI chip industry.

Aristotle Partners mentioned Synopsys, Inc. (NASDAQ:SNPS) in its Q3 2024 investor letter. Here is what the fund said:

“Synopsys, Inc. (NASDAQ:SNPS) detracted from performance in the third quarter as the stock was part of the general investor pullback in AI-related semiconductor names due to concerns about overall AI market growth in the near-term and profitability of the massive capex investments being made in AI infrastructure. The company continues to execute well on its AI-enhanced product suite and Synopsys IP and Tools continue to be an integral part of the semiconductor design and manufacturing supply chain. As semiconductor companies and enterprises continue to rely on increasingly complex semiconductors in their technology stack, we see Synopsys as a key beneficiary of the increased design and manufacturing spend.”