Here’s Why ClearBridge Large Cap Growth Strategy Initiated a Position in Synopsys (SNPS)

2 months ago 21

Soumya Eswaran

Tue, Apr 8, 2025, 7:39 AM 3 min read

ClearBridge Investments, an concern absorption company, released its “ClearBridge Large Cap Growth Strategy” archetypal 4th 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The bulk of maturation indexes entered correction territory during the quarter, owed to unit from the chaotic tariff implementation, concerns astir a weakening U.S. economy, and accrued inflation. Against this backdrop, the strategy outperformed the benchmark, driven by diversified banal enactment and an underweight vulnerability to the Magnificent Seven. The S&P 500 Index declined 4.27% successful the 4th and the benchmark Russell 1000 Growth Index (RLG) fell 9.97%. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its archetypal 4th 2025 capitalist letter, ClearBridge Large Cap Growth Strategy emphasized stocks specified arsenic Synopsys, Inc. (NASDAQ:SNPS). Synopsys, Inc. (NASDAQ:SNPS) offers physics plan automation bundle products utilized to plan and trial integrated circuits. The one-month instrumentality of Synopsys, Inc. (NASDAQ:SNPS) was -11.56%, and its shares mislaid 33.06% of their worth implicit the past 52 weeks. On April 7, 2025, Synopsys, Inc. (NASDAQ:SNPS) banal closed astatine $380.90 per stock with a marketplace capitalization of $58.895 billion.

ClearBridge Large Cap Growth Strategy stated the pursuing regarding Synopsys, Inc. (NASDAQ:SNPS) successful its Q1 2025 capitalist letter:

"The acquisition of Synopsys, Inc. (NASDAQ:SNPS), a person successful physics plan automation (EDA) bundle and customized spot designs, was the astir important alteration to our IT holdings. Synopsys is simply a bundle supplier that operates successful a duopoly marketplace with aggregate avenues of maturation driven by accrued complexity of semiconductor chips. The company’s EDA bundle and tools are ngo captious and hard to replicate, providing defence to its high-margin concern model. The banal has lagged implicit the past twelvemonth arsenic the caller question of AI infrastructure spending has not yet accelerated its gross growth. We deliberation this is driven mostly by softness successful the cyclical portions of the semiconductor marketplace and that Synopsys remains good positioned to payment from AI infrastructure spending and progressively analyzable spot design."

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Synopsys, Inc. (NASDAQ:SNPS) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge money portfolios held Synopsys, Inc. (NASDAQ:SNPS) astatine the extremity of the 4th fourth compared to 53 successful the 3rd quarter. While we admit the imaginable of Synopsys, Inc. (NASDAQ:SNPS) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.