Added to YB: 2026-05-06
Pitch date: 2026-05-03
CDNS [neutral]
Cadence Design Systems, Inc.
+2.08%
current return
Author Info
No bio for this author
Company Info
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions.
Market Cap
$94.0B
Pitch Price
$342.38
Price Target
N/A
Dividend
N/A
EV/EBITDA
45.84
P/E
79.47
EV/Sales
17.29
Sector
Software
Category
growth
Cadence Design: the unsung gem of semiconductors
CDNS (deep dive): EDA software w/ 30% annualized 10yr return. Moats: 30-40yr data accumulation, PDK lock-in (TSMC/Samsung certified only), $5-15M tape-out risk forcing vendor stickiness, oligopoly w/ Synopsys shields from antitrust. IP (Tensilica DSPs, interface/memory blocks) & PCB (Allegro) create full-stack ecosystem. Subscription model = zero profit declines in 15yrs vs 4 for NVDA. Q1 2026 rev +19%, FY guide 17%. $8B backlog (130% of $6.2B FY26 rev), 65% secured via RPO. Trades 40x P/E for stability vs cyclical semi peers.
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