The stock of big chip-design software maker, Synopsys, has risen after activist investor Elliot Management made a multi-billion-dollar investment in the company.
People familiar with the matter said Elliot plans to engage with Synopsys to push the business to make more money from its software and services.
“Synopsys is essential to the global chip industry,” Elliott Managing Partner Jesse Cohn told The Wall Street Journal.
“As AI drives a step change in chip complexity and capital investment, Synopsys is uniquely positioned to benefit from this growth.”
Following the investment, the stock for Synopsys grew 2.89% to US$432.48, and its market cap is $82.85 billion.
Elliot hasn’t revealed the exact value of the investment.
The firm also took a $1 billion stake in Pinterest earlier this month.
This comes as the semiconductor arms race grows, as companies pour resources into designing AI chips.
Global chip sales hit $792 billion last year and are expected to surpass $1 trillion by the end of this year, according to data from the Semiconductor Industry Association.
In December, Nvidia purchased $2 billion of Synosys common stock in a computing power partnership.
