Synopsys has transitioned from being solely reliant on semiconductor companies for revenue to having a diverse customer base, with less than half of its revenue now from traditional chip manufacturers.
The growth of AI is seen as a companion rather than a competitor for Synopsys, as the demand for advanced chip designs drives the need for sophisticated electronic design automation tools.
Despite Synopsys's strong fundamentals, caution around its valuation presents an opportunity to start investing given the recent stock price declines, allowing for potential future increases.
In addition to Synopsys, exploring investments in competitors like Cadence Design Systems aligns with a broader strategy of diversifying within the electronic design automation space.
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