Synopsys Rallies, Moderna Falls, Strategy Slides
On this episode of Stock Movers: - Nvidia (NVDA) invested $2 billion in chip-design software maker Synopsys (SNPS) as part of a broader engineering and design tie-up, aiming to infuse its AI-computing technology into more industries. Nvidia purchased the shares at $414.79 each, the companies said in a statement on Monday. The stake represents 2.6% of Synopsys’ outstanding stock. California-based Synopsys is one of the largest providers of software and services used to design electronic components. It aids with designing the complex layout of billions of transistors and connectors for modern chips, and also verifies that hardware will work as intended before the production stage. That process is used to build the chips needed in artificial intelligence systems, such as those sold by Nvidia. Shares of Synopsys rallied. - Moderna (MRNA) fell Monday after the Food and Drug Administration said in a memo late last week it would place new restrictions on which vaccines hit the market.Vinay Prasad, a top FDA official, blamed Covid shots for playing a role in the deaths of 10 children in the memo he sent to agency staff on Friday, which was seen by Bloomberg. He said the FDA will require vaccine makers to perform additional tests to get their shots approved as a result of the safety concerns. Moderna, which produces Covid shots, fell 4.1% at the start of regular trading in New York on Monday. Other vaccine makers also dipped. BioNTech SE slipped 2.1%, Novavax Inc. fell 3.1%, while Vaxcyte Inc. declined 10%. - Strategy (MSTR) said it had created a $1.4 billion reserve to fund future dividend and interest payments, in a bid to temper fears that the Bitcoin accumulator may be forced to sell some of its roughly $56 billion cryptocurrency haul if token prices continue to fall. The Tysons Corner, Virginia-based company said in a statement on Monday that the new reserve, funded by proceeds from the sale of shares of class A common stock, would cover at least 21 months of dividend payments. Over time, it plans to maintain enough cash in the reserve to cover up to two years of payments.Even so, the announcement did little to allay concern. The shares slumped as much as 12% on Monday, before closing the day down 3.3%.See omnystudio.com/listener for privacy information.
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