The $2 billion investment in Synopsys, which makes software and components for designing semiconductor chips, deepens their existing partnership at a time when analysts scrutinize circular AI-industry deals and warn of a potential bubble.

Multiyear collaboration spans NVIDIA CUDA accelerated computing, agentic and physical AI, and Omniverse digital twins to achieve simulation speed and scale

Synopsys ( SNPS +3.69%) stock jumped 3.7% through 11:45 a.m. ET Monday after announcing a "strategic partnership" with AI semiconductor giant Nvidia ( NVDA +1.67%). Oh, and Synopsys also announced that Nvidia is giving it $2 billion.

Synopsys jumps after Nvidia invests $2 billion in the company’s common stock, while Tesla follows Chinese electric-vehicle makers to the downside after the companies issue deliveries for November.