Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including Innovus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI express, universal accelerator and compute express links, and multiple memory interfaces; and Tensilica, a digital signal processor. In addition, the company’s design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and OrCAD X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AWR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphysics platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA for the development of engineering solutions tailored for agentic AI chip and system design. The company was incorporated in 1987 and is headquartered in San Jose, California.
Analyst Outlook | Learn about analyst perspectives on Cadence, with price targets ranging from $328 to $375, reflecting optimism about the company's future prospects |
Market Challenges | Uncover the geopolitical risks and competitive pressures facing Cadence, including flat projections for China and the need for continuous innovation |
Financial Strength | Delve into Cadence's robust financials, including an $86B market cap, 85.86% gross margins, and a record-breaking $6.8B Q4 backlog |
AI-Driven Growth | Explore Cadence's expansion into Physical AI, a promising market for semiconductors, opening new opportunities and fueling long-term growth potential |
Metrics to compare | CDNS | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipCDNSPeersSector | |
|---|---|---|---|---|
P/E Ratio | 75.7x | 65.4x | 12.7x | |
PEG Ratio | 13.35 | −0.88 | 0.01 | |
Price / Book | 15.3x | 3.8x | 2.4x | |
Price / LTM Sales | 15.9x | 2.9x | 2.3x | |
Upside (Analyst Target) | 29.0% | 8.7% | 26.9% | |
Fair Value Upside | Unlock | −8.6% | 3.4% | Unlock |