SNPS and CDNS appear undervalued relative to recent prices despite market concerns that AI will replace EDA software. The author argues the narrative that AI will collapse the Synopsys/Cadence duopoly is flawed, though acknowledges AI could theoretically solve EDA problems.

Synopsys is positioned as a category leader in chip design software that is undervalued relative to its market impact and growth prospects. The author believes the stock is trading below its intrinsic value given the company's dominant position in a critical semiconductor infrastructure segment.