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14 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.

Author avatar

Han Tan | Market Analyst

Published on July 15

Your Basket's Financial Footprint

Market capitalisation breakdown for the EDA Underdogs basket, summarised for investor insight.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and performance likely more stable, tracking broad market moves.
  • Treat this basket as a core holding for diversified portfolios, not a speculative or short-term trade.
  • Expect gradual, long-term value accumulation rather than explosive short-term gains; returns are likely steadier.
Total Market Cap
  • CDNS: $90.86B

  • SNPS: $85.27B

  • PTC: $24.50B

  • Other

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.

Why You'll Want to Watch These Stocks

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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.

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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.

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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.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

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