We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Strategic Partnerships Boost Cadence's Stock Performance?
Read MoreHide Full Article
Cadence Design Systems, Inc. (CDNS - Free Report) recently joined forces with Rapidus Corporation to tackle some of the most pressing challenges in semiconductor design and manufacturing. The partnership aims to deliver artificial intelligence (AI)-driven reference design flows and a robust intellectual property (IP) portfolio to support Rapidus’ 2nm gate-all-around (GAA) process. The initiative also integrates the transformative potential of Rapidus’ backside power delivery network (BSPDN) technology.
With rising design challenges in the semiconductor industry driven by growing computational demands, GAA and BSPDN technologies are essential to meet stricter power, performance and area requirements. Cadence brings a robust suite of AI-driven digital and analog/mixed-signal design tools, ensuring designers can efficiently leverage the 2nm GAA BSPDN process. These tools, tailored to address the complexities of modern semiconductor design, include Cadence Cerebrus Intelligent Chip Explorer, Cadence JedAI Solution, Genus Synthesis Solution, Conformal, Joules RTL Power Solution, Innovus Implementation System, Tempus Timing Signoff Solution, Quantus Extraction Solution, Voltus IC Power Integrity Solution, Virtuoso Studio, Spectre X Simulator, Voltus-XFi Custom Power Integrity Solution, and Pegasus Verification System.
Apart from these tools, CDNS offers a comprehensive interface and memory IP portfolio that encompasses HBM4, 224G SerDes, and PCI Express 7.0 components. These components empower designers to build cutting-edge solutions to drive innovation and advancements in the semiconductor industry.
The deal between Cadence and Rapidus is poised to accelerate the development of AI infrastructure, which relies heavily on advanced semiconductor technologies. By combining Cadence’s expertise in AI-driven design tools and IP with Rapidus’ advancements in semiconductor manufacturing, the collaboration ensures its customers are well-equipped to meet future demands.
CDNS Thrives on Strategic Collaborations
Cadence remains focused on inking lucrative partnership deals across core EDA, IP and System Design and Analysis areas. Recently, it partnered with AST SpaceMobile to advance AST's goal of connecting smartphones to high-speed satellite Internet. ASTS leverages Cadence tools to develop a robust and widely accessible space-based cellular broadband network.
In September 2024, CDNS and TSMC teamed up to boost AI-driven chip designs and 3D-ICs, addressing the demand for advanced silicon. TSMC approved Cadence tools for its N3 and N2P technologies. In June 2024, Cadence collaborated with Samsung Foundry to fast-track the development of systems and semiconductors for high-demand applications, including AI, automotive, aerospace, hyperscale computing and mobile.
Growing partnerships and strong demand for advanced hardware systems, especially from AI, hyperscale and automotive sectors, are proving tailwinds for the company. Healthy growth trends are likely to reflect positively on its financial performance, propelling the stock.
In the last reported quarter, its top line jumped 18.8% year over year to $1.215 billion, beating the Zacks Consensus Estimate by 2.7%. Following a strong third quarter, management narrowed its 2024 revenue forecast to $4.61-$4.65 billion from the previous $4.6-$4.66 billion range. Non-GAAP earnings per share (EPS) are now expected to be between $5.87 and $5.93 compared with the earlier guidance of $5.77-$5.97.
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). CDNS’ stock went up 2% in the last day’s trading on Nov. 11 and closed the session at $308.78. Shares of the company have gained 11.6% in the past year compared with the sub-industry's growth of 21.6%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.
CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%.
Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Strategic Partnerships Boost Cadence's Stock Performance?
Cadence Design Systems, Inc. (CDNS - Free Report) recently joined forces with Rapidus Corporation to tackle some of the most pressing challenges in semiconductor design and manufacturing. The partnership aims to deliver artificial intelligence (AI)-driven reference design flows and a robust intellectual property (IP) portfolio to support Rapidus’ 2nm gate-all-around (GAA) process. The initiative also integrates the transformative potential of Rapidus’ backside power delivery network (BSPDN) technology.
With rising design challenges in the semiconductor industry driven by growing computational demands, GAA and BSPDN technologies are essential to meet stricter power, performance and area requirements. Cadence brings a robust suite of AI-driven digital and analog/mixed-signal design tools, ensuring designers can efficiently leverage the 2nm GAA BSPDN process. These tools, tailored to address the complexities of modern semiconductor design, include Cadence Cerebrus Intelligent Chip Explorer, Cadence JedAI Solution, Genus Synthesis Solution, Conformal, Joules RTL Power Solution, Innovus Implementation System, Tempus Timing Signoff Solution, Quantus Extraction Solution, Voltus IC Power Integrity Solution, Virtuoso Studio, Spectre X Simulator, Voltus-XFi Custom Power Integrity Solution, and Pegasus Verification System.
Apart from these tools, CDNS offers a comprehensive interface and memory IP portfolio that encompasses HBM4, 224G SerDes, and PCI Express 7.0 components. These components empower designers to build cutting-edge solutions to drive innovation and advancements in the semiconductor industry.
The deal between Cadence and Rapidus is poised to accelerate the development of AI infrastructure, which relies heavily on advanced semiconductor technologies. By combining Cadence’s expertise in AI-driven design tools and IP with Rapidus’ advancements in semiconductor manufacturing, the collaboration ensures its customers are well-equipped to meet future demands.
CDNS Thrives on Strategic Collaborations
Cadence remains focused on inking lucrative partnership deals across core EDA, IP and System Design and Analysis areas. Recently, it partnered with AST SpaceMobile to advance AST's goal of connecting smartphones to high-speed satellite Internet. ASTS leverages Cadence tools to develop a robust and widely accessible space-based cellular broadband network.
In September 2024, CDNS and TSMC teamed up to boost AI-driven chip designs and 3D-ICs, addressing the demand for advanced silicon. TSMC approved Cadence tools for its N3 and N2P technologies. In June 2024, Cadence collaborated with Samsung Foundry to fast-track the development of systems and semiconductors for high-demand applications, including AI, automotive, aerospace, hyperscale computing and mobile.
Growing partnerships and strong demand for advanced hardware systems, especially from AI, hyperscale and automotive sectors, are proving tailwinds for the company. Healthy growth trends are likely to reflect positively on its financial performance, propelling the stock.
In the last reported quarter, its top line jumped 18.8% year over year to $1.215 billion, beating the Zacks Consensus Estimate by 2.7%. Following a strong third quarter, management narrowed its 2024 revenue forecast to $4.61-$4.65 billion from the previous $4.6-$4.66 billion range. Non-GAAP earnings per share (EPS) are now expected to be between $5.87 and $5.93 compared with the earlier guidance of $5.77-$5.97.
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). CDNS’ stock went up 2% in the last day’s trading on Nov. 11 and closed the session at $308.78. Shares of the company have gained 11.6% in the past year compared with the sub-industry's growth of 21.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) , Celestica Inc. (CLS - Free Report) and Plexus Corp., Inc. (PLXS - Free Report) . IDCC, CLS & PLXS presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.
CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%.
Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.