NVIDIA Corp (NASDAQ:NVDA) shares are trading higher on Monday. CEO Jensen Huang provided commentary on recent AI concerns after the company announced an expanded partnership with Synopsys Inc (NASDAQ:SNPS), aimed at reshaping the design and engineering industries.
- NVDA is demonstrating bullish strength. Check the full analysis here
What To Know: Huang joined Synopsys CEO Sassine Ghazi on CNBC's “Squawk on the Street” Monday morning to highlight how the collaboration will bring GPU‑accelerated computing to some of the most demanding design and engineering workflows.
“This is a huge deal. The partnership we’re announcing today is about revolutionizing one of the most compute-intensive industries in the world, design and engineering,” Huang told CNBC. “We’re able to do simulations at a speed and scale unimaginable in the past.”
The partnership will allow Synopsys to tap into Nvidia CUDA, physical AI and Omniverse to reinvent tools across areas like electronic design automation, system design, computer‑aided engineering and even drug discovery. By doing so, it opens the door for advanced computing to play a much bigger role in the design and engineering world.
Nvidia stock appeared to dart higher on Monday morning after Huang was asked about hyperscaler spending and whether an AI bubble might be forming. He pushed back on those concerns, saying the heavy investments from hyperscalers reflect a fundamental shift in computing, not speculation.
Huang explained that the industry is moving away from traditional CPU‑based systems toward accelerated computing powered by GPUs. With Moore's Law slowing, he argued that general‑purpose computing has reached its limits, making the transition to GPU‑driven platforms both necessary and inevitable.
“Most people only see the tip of the iceberg and they see a partial part of the picture,” Huang said. “At the foundation, we’re going through a platform shift from classical general-purpose computing running on CPUs to a new way of doing computing, accelerated computing running on GPUs.”
When asked about competition from custom chips like Google's TPUs, Huang noted that Nvidia has long faced rivals using specialized hardware. But he emphasized that Nvidia's technology is more flexible. Accelerating complex tools, such as those from Synopsys, requires a broad computing architecture like CUDA, which ASICs don't offer, he said.
That flexibility lets Nvidia serve far more than just chatbots, reaching across cloud providers, hardware makers, on‑premise systems and edge computing environments.
“What Nvidia does is much more versatile. Our technology is much more fungible … We're also everywhere. We're in every cloud. We're in every single OEM. We're on-prem. And we're also at the edge. And so the Nvidia opportunity is much, much larger,” Huang said.
Nvidia shares fell as much as 7% last Tuesday following a report that Meta Platforms Inc (NASDAQ:META) was considering using Google-designed chips. Huang’s comments appeared to ease investor concerns during his CNBC appearance on Monday.
NVDA Analyst Ratings
Nvidia has seen a favorable trend in recent analyst actions with all maintaining positive ratings and raising target prices. Most recently, Morgan Stanley maintained an Overweight rating on Monday and increased its target price to $250 from the prior $235. Similarly, on Nov. 20, Citigroup maintained a Buy rating and raised its target price to $270 from $220.
On the same day, Barclays also maintained an Overweight rating and set a target price of $275, up from $240. JPMorgan and Jefferies followed suit, maintaining Overweight and Buy ratings, respectively, with each setting their target prices at $250. These actions suggest high confidence in Nvidia’s recent financial performance.
NVDA Price Action: Nvidia shares were up 1.13% at $179.03 at the time of publication on Monday, according to Benzinga Pro.
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