Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ (SNPS) Peer Discount

Elliott Investment Management, a US activist campaign, has targeted Synopsys, Inc. (NASDAQ:SNPS) in its recent Q2 2026 investor letter. Synopsys provides electronic design automation (EDA) software crucial for semiconductor chip design, which is used by companies like Nvidia and Advanced Micro Devices (AMD). The activist fund argues that Synopsys has underperformed its closest peer, Cadence Design Systems, by significant margins over the past 1-, 3-, and 5-year periods.

Synopsys trades at a discounted valuation of 28.1x NTM P/E compared to Cadence's 35.5x. Despite this, the company has not been widely recognized by hedge funds, with only 85 holding its shares at the end of Q2 2026.