Core Insights - Synopsys, Inc. is identified as an overlooked AI stock with a 'Buy' rating and a price target of $600, indicating a potential upside of approximately 32% [1] - Keysight Technologies has completed the acquisition of the Optical Solutions Group from Synopsys, enhancing its design engineering software portfolio and computer-aided engineering capabilities [2] - The acquisition allows Keysight to leverage advanced optical design tools, improving system-level simulation and design decisions in power, optical, and photonics [3] Company Overview - Synopsys, Inc. is a California-based company specializing in electronic design automation software for building and testing integrated circuits [3] - The company operates in two main segments: Design Automation and Design IP, providing silicon-to-systems solutions for AI-driven products [3]

Core Viewpoint - The article discusses the divestiture of Synopsys' Optical Solutions Group and PowerArtist business to Keysight Technologies as a necessary step for regulatory approval of Synopsys' acquisition of Ansys, which was completed on July 17, 2025. The divestiture is expected to be finalized around October 17, 2025, and is not anticipated to have a significant financial impact on Synopsys [1][4]. Group 1: Synopsys' Divestiture - Synopsys has received all necessary approvals to proceed with the divestiture of its Optical Solutions Group (OSG) and PowerArtist business to Keysight Technologies, which is seen as essential for the regulatory approval of the Ansys acquisition [1][4]. - The OSG provides design tools and services for high-precision optical product simulation and visualization, including tools like CODE V, LightTools, LucidShape, RSoft, and the recently launched ImSym [2][3]. - The divestiture is expected to allow for a seamless transition for employees, customers, and partners, with OSG continuing to operate as part of Synopsys until the transaction is completed [3][4]. Group 2: Keysight Technologies' Acquisition - Keysight Technologies aims to expand its software simulation product portfolio through the acquisition of Synopsys' Optical Solutions Group, enabling support for high-performance systems beyond electronics, including optics and photonics [3][5]. - The acquisition of PowerArtist, a comprehensive RTL power design platform, is intended to enhance Keysight's position in high-performance system design and simulation software [4][5]. - Both Synopsys and Ansys believe that the sale of PowerArtist is necessary for regulatory approval, and the transition will be managed to ensure continuity of service for customers [4][5].