Jim Cramer Wonders Whether "Intel Crushed" Synopsys, Inc. (SNPS)

We recently published 8 Stocks on Jim Cramer’s Radar. Synopsys, Inc. (NASDAQ:SNPS) is one of the stocks Jim Cramer recently discussed.

Synopsys, Inc. (NASDAQ:SNPS) sits right at the start of the semiconductor supply chain. The firm provides electronic design automation (EDA) software tools that allow chip companies like NVIDIA and AMD to design their products. The day Cramer made these remarks, Synopsys, Inc. (NASDAQ:SNPS)’s shares closed a stunning 35.8% lower. The shares dipped the day after the firm’s third-quarter earnings report. The results saw Synopsys, Inc. (NASDAQ:SNPS)’s $1.74 billion in revenue and $3.39 profit-per-share miss analyst estimates by a wide margin. Cramer wondered whether the firm’s relationship with Intel was behind its woes:

“Intel crushed them, I think. I think Intel crushed them. I really do because when you look at the China. . .they have been very close to Intel, Intel Foundry.

“And that had been a, that had been a clockwork stock, Carl, you just knew you could buy Synopsys. These guys have a big relationship with NVIDIA. I thought NVIDIA would be held back, by Synopsys.”

Synopsys, Inc. (NASDAQ:SNPS) scored a win in July after the Trump administration lifted some restrictions on China product sales.. Cramer discussed Synopsys, Inc. (NASDAQ:SNPS)’s relationship with NVIDIA back then as well:

“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.”

While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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