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17 handpicked stocks

EDA Underdogs

This collection features carefully selected companies in the electronic design automation (EDA) and semiconductor IP space. Our professional analysts have identified these stocks as potential beneficiaries of the changing competitive landscape following Synopsys' massive $35 billion acquisition of Ansys.

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Author avatar

Han Tan | Market Analyst

Updated today | Published at Jul 15

About This Group of Stocks

1

Our Expert Thinking

The Synopsys-Ansys merger creates a dominant force in semiconductor design software, which might prompt customers to diversify their suppliers. This potentially benefits smaller, specialized companies in this space, making them attractive both as alternative providers and as potential acquisition targets.

2

What You Need to Know

Electronic design automation (EDA) software is essential for designing modern chips and electronics. This theme includes both direct competitors to the newly merged giant and complementary players across the semiconductor ecosystem who could see shifting business dynamics.

3

Why These Stocks

These companies were selected because they represent potential beneficiaries of industry consolidation. Some are direct competitors who could gain market share, while others provide critical technologies that may become more valuable in a more concentrated market environment.

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

CDNS

Cadence Design Systems Inc.

CDNS

Current price

$314.58

As a primary competitor to the newly merged entity, this company is well-positioned to attract customers seeking to diversify their EDA tool suppliers...

As a primary competitor to the newly merged entity, this company is well-positioned to attract customers seeking to diversify their EDA tool suppliers to mitigate risks associated with the increased market concentration.

SNPS

Synopsys Inc.

SNPS

Current price

$571.20

This company is the acquirer in the landmark deal, and its stock reflects the market's perception of the strategic benefits and integration risks asso...

This company is the acquirer in the landmark deal, and its stock reflects the market's perception of the strategic benefits and integration risks associated with creating a dominant force in the EDA industry.

PTC

PTC Inc.

PTC

Current price

$194.19

A significant player in the broader CAD and PLM software market, this company's offerings in simulation and digital twin technology may see increased ...

A significant player in the broader CAD and PLM software market, this company's offerings in simulation and digital twin technology may see increased interest from customers looking for alternatives to the merged giant.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+25.88%

Group Performance Snapshot

25.88%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 25.88% over the next year.

12 of 13

Stocks Rated Buy by Analysts

12 of 13 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔄

Market Disruption in Action

The $35 billion Synopsys-Ansys deal is reshaping the entire chip design software industry. When giants merge, it often creates unexpected opportunities for smaller players and industry partners.

🎯

Potential Acquisition Targets

Industry consolidation often happens in waves. Some of these specialized EDA and semiconductor IP companies could become attractive acquisition targets as competitors respond to the changing landscape.

💼

Customer Diversification Play

Chip designers may not want to rely on a single vendor for critical design tools. Companies in this group could benefit as customers seek to diversify their supplier relationships to reduce risk.

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