Jesse Cohn

investor, trekkie

[Synopsys @Synopsys]

AI is shaping the future of chip design and Synopsys is leading the way. Synopsys’ ground-truth EDA engines turn AI-driven exploration into verified designs, grounded in physics and ready for manufacturing. AI reasons and explores. Synopsys generates and validates.

[Jesse Cohn @jessecohn]

All good things… 💔

[The New York Times @nytimes]

Breaking News: Patrick Stewart, who found acclaim as a Shakespearean actor before making a career pivot that would bring him his greatest fame, has died at 86. He achieved pop-culture stardom with major roles in “Star Trek: The Next Generation” and “X-Men.” https://t.co/TviHBQrcxL

[Jesse Cohn @jessecohn]

We look forward to partnering with CCC, a highly durable software leader and a trusted third party at the center of the automotive ecosystem.

https://t.co/XyMvQF6q8C

[Jesse Cohn @jessecohn]

Great convo with Bob Calderoni about the perspectives that engaged investors can bring to the boardroom. Thank you to @NACD for having us! #NACDSummit

[Jesse Cohn @jessecohn]

The stock market feels different right now because it is different. Winners keep winning, losers get pounded, earnings reactions are increasingly unpredictable and larger.

The tremendous growth in passive investing combined with the fact that HFT, retail, and short-duration capital dominate trading volumes has meaningfully changed "price discovery" in the short term.

This creates short-term risk and volatility, but it also creates some interesting opportunities for those who can identity value, assist with narrative and drive improvements.

[Jesse Cohn @jessecohn]

The AWS deal also has implications beyond Synopsys.

As hyperscalers move from buying chips to designing ASICs to COT, they want more control, customization and better economics. To do this, they need IP partners that can execute.

This is a fundamental business model expansion for Synopsys to become an ARM-like IP provider. The $1bn+ license fee is from Amazon alone, with other agreements already signed across the AWS ecosystem. Over time, royalties should exceed license fees.

Synopsys is capturing more value from its market-leading IP and design expertise. We expect more customers to follow this model.

With accelerating revenue, expanding margins, a compelling valuation and the right approach to this new landscape, we think $SNPS is very attractive here. Congratulations to @SassineGhazi and team!

[Jesse Cohn @jessecohn]

Two important $SNPS deals yesterday, with implications across software and semiconductors.

GPT-Synopsys combines frontier intelligence with Synopsys solvers. Synopsys now supports its own agents, customer-built agents and frontier LLM agents, all relying on Synopsys’s ground-truth core EDA tools. This is the right model for durable technology in an agentic world.

OpenAI will invest hundreds of millions to train the model, with Synopsys earning revenue during training and a revenue share based on outcomes in production. This product will ultimately bundle compute, models and Synopsys licenses, with Synopsys sharing in the economics.

For Synopsys, AI means faster design cycles, more complexity, more customers and more tool usage, expanding TAM and accelerating growth.

[Jesse Cohn @jessecohn]

There’s also a direct link to TAM expansion and revenue acceleration at $SNPS. @SassineGhazi walked through it, and it’s flowing through the numbers. More chips, more customers designing them, more complexity and more agents ramping all lead directly to more revenue at Synopsys.

[Jesse Cohn @jessecohn]

There’s been a debate among investors about the implications of AI for the EDA space. Today, @Synopsys answered: AI is a clear accelerant for EDA and for $SNPS in particular. EDA tools are the ground truth for leading semiconductor design. With the rise of agentic AI, Synopsys is seeing a 5-10x increase in usage of its tools.

[Jesse Cohn @jessecohn]

Our statement on @salesforce:

[Jesse Cohn @jessecohn]

We are strong believers in @westerndigital's compelling growth opportunity, and we look forward to continuing our support for @DavidGoeckeler and his management team’s execution, strategic vision and focus on shareholder value.

[Jesse Cohn @jessecohn]

We are pleased to participate in this investment and are encouraged by the progress @westerndigital has made in its strategic review process to date.

[Jesse Cohn @jessecohn]

Our participation follows our previous offer to provide strategic resources and additional capital to help the company realize the full value of both its HDD and Flash businesses.

[Jesse Cohn @jessecohn]

We look forward to working constructively with @salesforce to realize the value befitting a company of its stature.

[Jesse Cohn @jessecohn]

.@salesforce is one of the preeminent software companies in the world, and having followed them nearly two decades, we have developed a deep respect for @Benioff and what he has built.

[Jesse Cohn @jessecohn]

Marc Steinberg’s appointment to the Board is a clear result of the strong partnership between @elliottmgmt & @Pinterest and illustrates our shared commitment to shareholder value creation and @Pinterest’s future. https://t.co/4xKtRLvrlJ

[Jesse Cohn @jessecohn]

.@Pinterest sets itself apart from other platforms by offering a comprehensive solution that helps advertisers meet users across their inspiration-to-action product journey.

[Jesse Cohn @jessecohn]

With its already strong foundation, healthy balance sheet and unique business model, we believe that @Pinterest has only scratched the surface of the company’s potential under @williamready.

[Jesse Cohn @jessecohn]

Today's announcement highlights a number of steps that have been underway and are being initiated to help realize the significant value opp at the Co. We look forward to working w/ & supporting @Dan_Schulman, the Board, and the rest of the team as they execute on this opp.

[Jesse Cohn @jessecohn]

As one of @PayPal's largest investors, with an approximately $2B investment, Elliott strongly believes in the value proposition at PayPal. PayPal has an unmatched and industry-leading footprint across its payments businesses and a right to win over the near- and long-term.