Cadence Design Sys Inc

AI stocks fell Tuesday after an OpenAI report on missed targets triggered declines in Oracle, CoreWeave, and chipmakers, ahead of earnings from major tech firms.

Cadence shares bounced back 5.2% Friday after deepening its AI chip design partnership with TSMC. The company reports Q1 earnings Monday, with analysts eyeing $1.453B revenue.

Synopsys announced expanded collaboration with TSMC on advanced chipmaking and packaging for AI, unveiling new design tools for 3nm, 2nm, A16, and A14 nodes. Shares rose to $483.00.

Nvidia and Cadence Design Systems are partnering to integrate Cadence's physics engines with Nvidia's AI models to train robots in simulated environments. The move expands Nvidia's focus beyond data centers into robotics and agentic AI.

Synopsys shares declined 5.4% to $380.47 on Friday, underperforming rival Cadence as a market selloff hit software stocks. The drop wiped out earlier gains spurred by Elliott Investment Management's multibillion-dollar stake.

Synopsys shares declined following a Morgan Stanley downgrade and price target cut. Investors await the company's Converge event on March 11 for strategic updates.

Datadog shares surged over 14% after strong quarterly results driven by AI demand, while Alphabet sold $20 billion in bonds to fund AI infrastructure spending. Cisco and Cadence gained on new chip developments.