Cadence Design Systems (CDNS Quick QuoteCDNS - Free Report) announced an enhanced partnership with Arm to accelerate the deployment of data center silicon on the Arm Neoverse V2 platform. This collaboration involved refining Cadence's AI-driven RTL-to-GDS digital process for Neoverse V2 and delivering 5nm and 3nm Rapid Adoption Kits (RAKs).

The RAKs empower customers to achieve power, performance, and area (PPA) goals more efficiently. Additionally, Cadence's AI-driven verification flow now supports Neoverse V2, which provides designers with improved verification throughput and readiness for Arm SystemReady compliance. 

The digital RAKs offer Arm Neoverse V2 designers several advantages. Cadence Cerebrus AI capabilities automate and enhance digital chip design, which results in better PPA and increased designer efficiency. The RAKs also incorporate a smart hierarchy approach for optimal turnaround times on large, high-performance central processing units (CPUs). Also, the RAKs utilize the GigaOpt activity-aware power optimization engine to reduce dynamic power consumption.

Cadence Design Systems, Inc. Price and Consensus

Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote

The digital and verification portfolios have been designed to support the Cadence Intelligent System Design strategy and can enable SoC design improvement.

Cadence offers products and tools that help customers to design electronic products. The company continues to invest heavily in verification and digital design products, helping it launch products that address the ever-growing needs of electronics and semiconductor companies.

In May, the company announced an expanded partnership with Arm to enhance the success of mobile device silicon. This collaboration aims to provide customers with a quicker path to “tapeout” by utilizing Cadence's digital and verification tools, along with Arm's new Total Compute Solutions 2023 (TCS23), which includes several CPUs and graphics processing units.

Prior to that, the company announced that it expanded its partnership with Taiwan Semiconductor Manufacturing Company and Microsoft to accelerate the physical verification of giga-scale digital designs.

CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 43% compared with the sub-industry’s growth of 33.7% in the past year.

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Stocks to Consider

Some better-ranked stocks in the broader technology space are Woodward (WWD Quick QuoteWWD - Free Report) , Aspen Technology and Badger Meter (BMI Quick QuoteBMI - Free Report) . Woodward and Aspen Technology presently sport a Zacks Rank #1 (Strong Buy), whereas Badger Meter currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Woodward’s fiscal 2023 earnings per share (EPS) has increased 15.9% in the past 60 days to $4.15.

WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 26.1% in the past year.

The Zacks Consensus Estimate for Aspen Technology’s fiscal 2024 EPS has increased 5.8% in the past 60 days to $6.58.

Aspen Technology’s long-term earnings growth rate is 17.1%. Shares of AZPN have declined 8% in the past year.

The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 6.3% in the past 60 days to $2.86.

Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 61% in the past year.