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Cadence (CDNS) Unveils New UltraLink D2D PHY IP Solutions
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Cadence Design Systems, Inc (CDNS - Free Report) unveiled UltraLink D2D PHY (physical interfaces) IP for Taiwan Semiconductor Manufacturing Company’s (TSM - Free Report) 7 nanometer (nm) FinFET (Fin Field Effect Transistor) process technology.
The availability of Cadence UltraLink D2D PHY IP on N7 process will help customers to check bit-error rate (BER), insertion loss, performance across all process corners, and maximum transmission speed.
Cadence also rolled out UltraLink D2D PHY IP on Taiwan Semiconductor Manufacturing Company’s 6 nm process called CLN6FF, and 5nm Fin Field-Effect Transistor (FinFET) process.
The latest UltraLink D2D PHY IP solution is a low-latency, high-performance PHY for die-to-die connectivity. It delivers up to 40Gbps wire speed in a non-return to zero (NRZ) serial interface. It also offers 1Tbps/mm bandwidth, unidirectionally. It is cost effective compared with other solutions as it works with multi-chip modules (“MCM”) on organic substrates.
This IP solution augments the company’s Intelligent System Design strategy, which expands system-on-chip (SoC) design expertise. It assists developers to design chips that provide accelerated artificial intelligence (AI), 5G and cloud computing technologies.
Notably, evolution of semiconductor manufacturing processes from 10 nm to 7 nm and even 5 nm technology is opening new business avenues for simulation software solution providers, including Cadence. The accelerated deployment of 5G technology is anticipated to spur further growth in this regard.
Robust features of the new PHY IP offerings, amid strength in semiconductor end-market on high data center demand and growing clout of cloud-based high-performance computing (HPC) solutions, are expected to bolster adoption. This, in turn, is expected to boost top-line growth in the quarters ahead.
Solid Growth Prospects Bode Well
Cadence IP solutions continue to gain significant traction. In the second quarter of 2020, the company’s IP segment contributed 14% to overall revenue. The company is witnessing strong demand for high-speed DDR, Serializer/Deserializer (SerDes), and Tensilica IP products. The company’s PCIe (peripheral component interconnect express) solutions are also being widely adopted.
Cadence’s IP solutions are witnessing rapid uptake particularly in the edge-computing and high-performance computing (HPC) end-markets. Per Mordor Intelligence data, HPC market is projected to witness a CAGR of 6.1% from 2020 to 2025.
Also, growing clout of Cadence’s IP solutions in the automotive end-market holds promise. The advanced driver assistance systems ("ADAS") market is expected to see a CAGR of 11.9% from 2020 to 2030, per a MarketsAndMarkets report.
Moreover, higher investments on Internet-of-things (IoT) as well as augmented and virtual reality (AR/VR) present significant growth opportunity.
This rapid uptake of the company’s IP product suite instils optimism in the stock. Notably, shares of Cadence have surged 60.4% in the year-to-date period compared with the industry’s rally of 30.4%. Notably, Cadence currently carries a Zacks Rank #2 (Buy).
However, the coronavirus-caused global supply-chain disruptions, sluggishness in the automotive sector and shutdown of factories are anticipated to negatively impact demand for Electronic Design Automation (EDA) software and tools in the near term, which is a headwind for Cadence.
Also, the company has to persistently invest in product enhancements and portfolio expansion to maintain competitive position in the EDA market against ANSYS (ANSS - Free Report) , Synopsys (SNPS - Free Report) and Siemens AG. This is likely to weigh on margins at least in the near term.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Cadence (CDNS) Unveils New UltraLink D2D PHY IP Solutions
Cadence Design Systems, Inc (CDNS - Free Report) unveiled UltraLink D2D PHY (physical interfaces) IP for Taiwan Semiconductor Manufacturing Company’s (TSM - Free Report) 7 nanometer (nm) FinFET (Fin Field Effect Transistor) process technology.
The availability of Cadence UltraLink D2D PHY IP on N7 process will help customers to check bit-error rate (BER), insertion loss, performance across all process corners, and maximum transmission speed.
Cadence also rolled out UltraLink D2D PHY IP on Taiwan Semiconductor Manufacturing Company’s 6 nm process called CLN6FF, and 5nm Fin Field-Effect Transistor (FinFET) process.
Cadence Design Systems, Inc. Price and Consensus
Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote
The latest UltraLink D2D PHY IP solution is a low-latency, high-performance PHY for die-to-die connectivity. It delivers up to 40Gbps wire speed in a non-return to zero (NRZ) serial interface. It also offers 1Tbps/mm bandwidth, unidirectionally. It is cost effective compared with other solutions as it works with multi-chip modules (“MCM”) on organic substrates.
This IP solution augments the company’s Intelligent System Design strategy, which expands system-on-chip (SoC) design expertise. It assists developers to design chips that provide accelerated artificial intelligence (AI), 5G and cloud computing technologies.
Notably, evolution of semiconductor manufacturing processes from 10 nm to 7 nm and even 5 nm technology is opening new business avenues for simulation software solution providers, including Cadence. The accelerated deployment of 5G technology is anticipated to spur further growth in this regard.
Robust features of the new PHY IP offerings, amid strength in semiconductor end-market on high data center demand and growing clout of cloud-based high-performance computing (HPC) solutions, are expected to bolster adoption. This, in turn, is expected to boost top-line growth in the quarters ahead.
Solid Growth Prospects Bode Well
Cadence IP solutions continue to gain significant traction. In the second quarter of 2020, the company’s IP segment contributed 14% to overall revenue.
The company is witnessing strong demand for high-speed DDR, Serializer/Deserializer (SerDes), and Tensilica IP products. The company’s PCIe (peripheral component interconnect express) solutions are also being widely adopted.
Cadence’s IP solutions are witnessing rapid uptake particularly in the edge-computing and high-performance computing (HPC) end-markets. Per Mordor Intelligence data, HPC market is projected to witness a CAGR of 6.1% from 2020 to 2025.
Also, growing clout of Cadence’s IP solutions in the automotive end-market holds promise. The advanced driver assistance systems ("ADAS") market is expected to see a CAGR of 11.9% from 2020 to 2030, per a MarketsAndMarkets report.
Moreover, higher investments on Internet-of-things (IoT) as well as augmented and virtual reality (AR/VR) present significant growth opportunity.
This rapid uptake of the company’s IP product suite instils optimism in the stock. Notably, shares of Cadence have surged 60.4% in the year-to-date period compared with the industry’s rally of 30.4%. Notably, Cadence currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Near-Term Challenges
However, the coronavirus-caused global supply-chain disruptions, sluggishness in the automotive sector and shutdown of factories are anticipated to negatively impact demand for Electronic Design Automation (EDA) software and tools in the near term, which is a headwind for Cadence.
Also, the company has to persistently invest in product enhancements and portfolio expansion to maintain competitive position in the EDA market against ANSYS (ANSS - Free Report) , Synopsys (SNPS - Free Report) and Siemens AG. This is likely to weigh on margins at least in the near term.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>