Synopsys, Inc. (SNPS) Benefits From Its Relationship With NVIDIA, Says Jim Cramer

We recently published Jim Cramer Discusses These 12 Stocks & Says Trump’s Winning. Synopsys, Inc. (NASDAQ:SNPS) is one of the stocks Jim Cramer recently discussed.

Synopsys, Inc. (NASDAQ:SNPS), along with Siemens and Cadence, is one of the key providers of EDA software in the world. This software is at the heart of the global semiconductor industry as it marks the start of a chip’s journey from an engineer’s mind to the foundry’s lithography machine and inside a computer. Synopsys, Inc. (NASDAQ:SNPS)’s shares are up by 13% year-to-date as they have struggled due to US chip restrictions on China. However, the firm, along with Cadence, scored a win earlier this month when the Trump administration lifted some of the restrictions. Cramer discussed the development and Synopsys, Inc. (NASDAQ:SNPS)’s relationship with NVIDIA:

“And the NVIDIA came up! I mean one of the. . look at the NVIDIA comeback. I mean without China which was Jensen Huang had said could be a fifty billion dollar opportunity with a 4.5 billion dollar write-off. They managed to get to an all-time high! A lot of people felt that NVIDIA was done. When the stock touched a hundred. What a comeback. Now some of that is because of sovereign that the President went and developed new markets for them. I do think we’re not paying enough attention to the . . .Synopsis deals, where the President has green lit. They are the two best partners of NVIDIA. And I keep thinking of what Jensen Huang said on Mad Money which was that I trust the President. He trusts the process. And the process would be having. . . Synopsys in there because those are one or two of the most important players that then you have NVIDIA, you tend to have. . .Synopsys. So it. would be natural if the government of China would say you know what, we’re going to get long term rare mineral deals not the short term deals in return for a different version of NVIDIA. And that’s what I felt NVIDIA’s stock has showed.”

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Disclosure: None. This article is originally published at Insider Monkey.