Synopsys, Inc. ( SNPS ) shares are trading higher Monday after reports suggesting that the activist investor Elliot Capital Management has built up a multibillion-dollar stake in the company.

Synopsys ( SNPS ) stock is showing upward movement. Why are SNPS shares climbing?

Elliott Pushes For Better Performance, Shares Trail Cadence

According to Reuters, a person familiar with the matter said Elliott plans to engage with Synopsys ( SNPS ) to push for improved revenue generation from its software and services and higher margins.

Elliott told The Wall Street Journal there is a "clear opportunity" for Synopsys' ( SNPS ) financial performance to better reflect the value it delivers. Managing Partner Jesse Cohn said the company is well positioned to benefit as artificial intelligence drives increased chip complexity and capital investment.

Synopsys ( SNPS ) said its board and management team regularly engage with shareholders and value their input.

The report also noted that Synopsys ( SNPS ) shares are down 12.15% year to date, compared with an 8.5% decline for rival Cadence Design Systems, Inc. ( CDNS ) .

Synopsys Shares Edge Higher

SNPS Price Action: At the time of publication, Synopsys ( SNPS ) shares are trading 3.25% higher at $433.98, according to data from Benzinga Pro.

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