Cadence Design Systems Inc. (CDNS)
Cadence Advances SoC and Chiplet Design With Samsung Foundry
CDNS and Samsung extend their collaboration to accelerate next-gen chip design with AI-driven IP on advanced nodes.
Cadence Design Systems: Where Next-Gen Chips Begin Their Journey
Cadence Design Systems is a mission-critical enabler of next-gen industries, boasting high recurring revenues, robust client retention, and an AI-driven product portfolio. The company's oligopolistic market position, high switching costs, and continuous innovation justify its premium valuation and support long-term growth prospects. Risks include industry cyclicality, customer concentration, high valuation, and geopolitical uncertainties, but strong cash flow and buybacks enhance shareholder value.
Cadence Design Systems: Strong Moat And Multiple Growth Drivers
I rate CDNS a buy due to strong secular tailwinds, a widening moat, and robust execution fueling early-stage growth. CDNS's mission-critical EDA tools, AI-powered Cerebrus platform, and NVIDIA partnership drive technological leadership and expand its addressable market. AI megatrends, hardware upgrade cycles, and potential share gains from Intel's strategy shift are key growth catalysts for CDNS.
Why Cadence Design Systems (CDNS) Outpaced the Stock Market Today
In the latest trading session, Cadence Design Systems (CDNS) closed at $301.66, marking a +1.59% move from the previous day.
Is Most-Watched Stock Cadence Design Systems, Inc. (CDNS) Worth Betting on Now?
Cadence (CDNS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Why Is Cadence (CDNS) Up 6.9% Since Last Earnings Report?
Cadence (CDNS) reported earnings 30 days ago. What's next for the stock?
Cadence Rises 27% in a Month: How Should You Play the Stock?
Strong AI demand, strategic acquisitions and solid guidance are positives for CDNS amid macro headwinds and premium valuation.
Cadence Design Systems, Inc. (CDNS) is Attracting Investor Attention: Here is What You Should Know
Zacks.com users have recently been watching Cadence (CDNS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Cramer's Stop Trading: Cadence Design
Jim Cramer breaks down why he's keeping an eye on shares of Cadence Design.
Cadence (CDNS) Reliance on International Sales: What Investors Need to Know
Review Cadence's (CDNS) international revenue performance and how it affects the predictions of financial analysts on Wall Street and the future prospects for the stock.
Cadence Design Systems, Inc. (CDNS) 20th Annual Needham Technology, Media, & Consumer Conference (Transcript)
Cadence Design Systems, Inc. (NASDAQ:CDNS ) 20th Annual Needham Technology, Media, & Consumer Conference May 12, 2025 1:30 PM ET Company Participants Nimish Modi - Senior Vice President & General Manager, Strategy and New Ventures Richard Gu - Vice President of Investor Relations Conference Call Participants Charles Shi - Needham & Co Charles Shi Hi, everyone. Welcome to join us at the 20th Annual Needham Technology, Media and Consumer Conference.
Why Cadence Design Systems Rallied 17.1% in April
Shares of semiconductor software design firm Cadence Design Systems (CDNS 0.75%) rallied 17.1%, according to data from S&P Global Market Intelligence. Cadence makes the electronic design automation software that chipmakers use to design chips. In addition, Cadence also has two other smaller but very high-growth segments in chip IP blocks, which chip designers can easily incorporate into their own designs, as well as overall system design and analysis software. While there was a lot of concern for tech stocks and specifically semiconductor stocks following April 2 "Liberation Day," Cadence reported strong Q1 earnings toward the end of the month and raised its full-year guidance. Moreover, management said it wasn't seeing any tariff-related change in customer behavior three weeks after April 2. In the first quarter, Cadence reported revenue growth of 23.1% to $1.24 billion, meeting expectations, and adjusted non-GAAP (adjusted) earnings per share grew 34.2% to $1.57, coming in ahead of expectations. However, perhaps more important was that Cadence actually increased its revenue guidance for the full year to 12% growth at the midpoint, and $6.78 in adjusted EPS at the midpoint. Coming off of April 2, many had feared the worst, especially for chip companies. However, CEO Anirudh Devgan noted Cadence hadn't noticed any change in its customers' behavior, saying: More and more companies are designing their own proprietary chips for various use cases to drive differentiation, whether it's the cloud providers or even new AI start-ups designing their own AI accelerators, or existing chip giants such as smartphone chipmaker Qualcomm trying to penetrate new verticals such as autos and PCs in order to diversify, for instance. Even though Cadence's customers operate in a cyclical industry, given that custom chipmaking is usually a major strategic goal and it can take years for new designs to come to fruition, the research and development behind custom chipmaking going to Cadence is unlikely to get cut, even in a bad economy. Given its lower-risk, double-digit growth outlook, it's no wonder Cadence now trades at over 45 times this year's adjusted earnings estimates. That's certainly not cheap, but it is perhaps a fitting valuation for a company that has delivered low to mid-teens growth and margin expansion every year for the past six years. In the age of AI, investors should probably expect great growth and margins for Cadence, and it should perform well over the long term. That being said, it may be hard for the stock to garner significant upside in the near-term, given its fairly full valuation.
