By George Glover
Elliott Investment Management is going back into the chip business, according to reports. History suggests that the activist investor knows what it's doing.
Elliott has a multibillion-dollar investment in chip-design software maker Synopsys and plans to push for the company to make more money, The Wall Street Journal reported on Sunday, citing people familiar with the matter.
"As AI drives a step change in chip complexity and capital investment, Synopsys is uniquely positioned to benefit from this growth," Elliott managing partner Jesse Cohn told The Journal.
Synopsys stock climbed 1.6% to $427 ahead of Monday's opening bell. Futures tracking the S&P 500 were 0.6% lower after President Donald Trump threatened to " hit and obliterate" Iranian power plants if Tehran didn't reopen the Strait of Hormuz within 48 hours.
Shareholders welcomed the move because Elliott has past form in pushing for change at semiconductor-related companies.
In May 2022, Elliott revealed it was pushing hard disk drive maker Western Digital to spin off its flash memory business. Elliott said a full separation of the flash business could allow both segments to be more successful and unlock "significant value."
It was proved right. Western Digital eventually spun off Sandisk in February 2025 -- and the two stocks have been on a tear ever since. Through Friday's close, Western Digital has jumped 497% and Sandisk has surged 1,374% since the spin off, according to Dow Jones Market Data. The S&P 500 is up 9.3% over the same period.
If Synopsys stock can even deliver a fraction of those returns, investors will be happy that Elliott pushed for changes.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 23, 2026 05:29 ET (09:29 GMT)
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