SNPS is a bull thesis; AI agentic tools and custom silicon demand will accelerate usage and revenue, making the 23.56 forward PE attractive.

and the third is going to be Synopsis, ticker SNPS. And then Synopsis is one in the software space that I believe can actually benefit dramatically from the agentic tools that we're seeing progress in the AI market right now.

Now, stock number three is Synopsis. Like I mentioned, this is that software company. For those that are not familiar, Synopsis helps you design AI chips. And that is the overall growth opportunity.

But first let's talk at valuations. Forward PE of 23.56. Now the risk here. What is the risk? Right? The market is fearing that AI just like any other software company AI is going to come and make companies like this obsolete.

People will be able to design on open- source solutions. People are going to no longer need Synopsis. But I think there's a whole different case. I think Synopsis has a lot of data. you're going to have a a great way to connect your AI solutions via some of the MCP.

They have to communicate AI with softwares. And I think that's going to accelerate demand for synopsis where it's going to increase the usage. Maybe back then only a single engineer needed a seed, but now it's a single engineer plus whatever consumption plus whatever AI agent they're working with and trading at a forward PE ratio of 23.56 seems extremely extremely extremely crazy. especially when now we're looking at last 12 months revenue continues to accelerate, right?

And at the same time, you're also seeing gross profits increase. This company did recently make an acquisition of anis that helps with simulations. And again, that's another market that I believe will continue to grow with AI and AI agents and AI tool calling is going to be a massive growth if this company values that and kind of monetizes that extremely well, which it does seem like they are trying to do.

So this is a unique way of kind of getting into the semiconductor and software play without just being a pure software market or without being purely a semiconductor stock. Now one of the things that I really loved in their recent earnings which they reported in a on August 26 as AI extands beyond digital infrastructure into physical products demand for silicon will continue to expand providing a tailwind for our standardbased IP business.

For those that are not familiar, this company outside of their software solution also has kind of like a licensing fee of some IP that's pre-built. And we're seeing massive amount of players trying to build their own AI chips.

They mentioned that is a tailwind for their business. They're seeing higher growth opportunities in IP as AI customers are asking for deeper collaboration to meet the demand. They are expanding into differentiated IP subsystems and enabling custom silicon solutions.

Customers ranging from hyperscalers, ASIC vendors, foundaries, and classic semiconductors who want to partner with Synopsis to accelerate their chip development efforts and leverage our IP and engineering expertise to build increasingly differentiated custom silicon.

This is our factory to model for customized IP. It moves up the value chain from licensing alone to the licensing plus royalty and positions us to capture the fast growing custom silicon opportunity market which is extremely bullish.

The other thing they talk about AI agents they're still in very early developments but they've done partnerships with companies like Microsoft with AMD with Nvidia showcasing how this EDA is going to be an added value.

They already mentioned that they're seeing strong customer interest in our Aentic AI platform with more than 30 active customers engagements under way. And synopsis year-to date, the stock is down roughly 17%.

From its overall 52- week high, I'm going to say somewhere around here. Right now, the stock is down roughly 26%. Market cap hundred billion. massive software base, massive data that they have, massive exposure and and kind of a platform in not just semiconductor manufacturing but now with the ANIs acquisition in simulation.

So I believe the data that they have is going to make them extremely crucial and AI agentic tooling is going to kind of increase that and if they have some form of consumptionbased business we can see an influx of revenue and influx of gross margin as well or growth there and some massive tailwinds.