Breakfast News: Elliott Takes Big Synopsys Stake

Breakfast News: Elliott Takes Big Synopsys Stake

March 23, 2026

Source: Image created by Jester AI.

1. Elliott Investment to Push Synopsis Profitability

Elliott Investment Management has built up a multibillion-dollar stake in chip-design software maker Synopsys (SNPS +2.89%), according to The Wall Street Journal. The activist investor intends to push Synopsys – recommended by both Team Hidden Gems and Team Rule Breakers – to grow its software and services profitability, the report says. The stock rose 2.5% in early trading.

• “Synopsys tool users are gonna go through the roof”: Jensen Huang, CEO of Nvidia (NVDA +1.80%) – a Synopsys customer and shareholder – spoke at the Synopsys Converge 2026 conference this month. Other chip design customers include Tesla (TSLA +3.53%), Alphabet (GOOG +0.06%) and Intel (INTC +0.42%).
• “Necessary tools because chips will continue to be designed”: Speaking of the impact of AI on Synopsys and Cadence (CDNS +3.04%), Fool contributing analysts Travis Hoium, Jon Quast, and Jose Najarro concluded: “AI may change workflows, but it doesn’t remove the need for subscriptions, and usage could rise as AI features expand.”

2. Oil Shock Pushes Markets Down

The Dow last week hit its longest losing streak since 2023, declining for four weeks in a row, as the uncertain direction of the conflict in Iran continues to put pressure on markets. The S&P 500 fell 1.9% over the week, with the Nasdaq down 2.1%. Futures fell 0.6% and 0.7% for the S&P 500 and Nasdaq respectively this morning. Gold is following markets down, losing over 7% earlier to just over $4,100 an ounce.

• “Where can I put my money to work to make money off this?”: Fool contributing analyst Jim Mueller notes “the urge to do something is really strong,” but there’s no point chasing prices that have already moved. He reminds us “We’re looking five, 10, 20 years out, right?” So “let others ‘enjoy’ the panic and fear.”
• “The war in Iran doesn’t seem to be slowing down”: With WTI crude still hovering around $100 per barrel, a recent Motley Fool Money podcast episode suggests higher costs could hit many industries, and highlights “how we’re investing through it all.”

Learn how to cope with the downturn

3. Pick of the Week’s Q4 Earnings

• Braze (BRZE +3.22%) is due to report Tuesday, after the Rule Breakers recommendation saw Q3 revenue climb 25% year over year (YoY) as management lifted full-year guidance. Watch for revenue contributions from new AI-based tools on the company’s enterprise platform.
• Oxford Industries (OXM +0.70%) saw losses widen in Q3, partly due to a $61 million impairment, but also suffering margin pressures. Management at the Dividend Investor rec lowered full-year expectations, and we should expect net sales between $1.47 billion and $1.49 billion. Recent share price falls put the forecast dividend yield at 8.1%.
• Chewy (CHWY +0.94%), a Team Rule Breakers rec in Stock Advisor, will update us Wednesday – following an 8% YoY revenue rise in the previous quarter. At the time, Fool analyst Alicia Alfiere pointed out customer counts shrank after the pandemic, but noted the “trend flipped back to growth in the middle of last year,” adding “net sales per active customer grew almost 5%” in Q3.

4. Your Take

Which – if any – of the Magnificent Seven companies are you most tempted to invest in at the current moment? What’s driving that temptation – valuation, a specific catalyst, or something else?

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