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Cadence & NVIDIA Expand Collaboration to Power AI Innovations
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Cadence Design Systems (CDNS - Free Report) recently deepened its multi-year collaboration with NVIDIA (NVDA - Free Report) to accelerate computing and agentic AI solutions. The joined forces will likely address pressing global technology challenges by enhancing computational performance and advancing design and innovation across various industries.
By integrating NVIDIA’s latest Blackwell architecture, Cadence is modernizing its engineering and scientific solutions, empowering designers to solve previously impossible problems with unmatched efficiency. The integration has bolstered computational speedups, including computational fluid dynamics (CFD) simulations reduced by up to 80X, Cadence Spectre X Simulator accelerated by 10X and 3D-IC design and analysis (thermal, stress, and warpage) accelerated by 7X. These improvements not only speed up the development process but also enhance accuracy and efficiency, enabling companies to bring next-generation products to market faster.
The acceleration of CFD simulations using NVIDIA’s Blackwell platform is a promising development. CDNS harnessed the Cadence Fidelity CFD Platform with NVIDIA GB200 GPUs to perform multi-billion cell simulations in under 24 hours. This is a significant leap forward, as similar simulations previously required entire top 500 CPU clusters with hundreds of thousands of cores and several days to complete.
This development is particularly impactful for the aerospace industry, where reducing wind tunnel testing costs and expediting time-to-market are crucial goals. By solving complex CFD challenges, such as takeoff and landing simulations, Cadence and NVIDIA are enabling faster, more cost-effective aerospace engineering.
The companies are also collaborating on a full-stack agentic AI solution to transform electronic and system design. By integrating the Cadence JedAI Platform with the NVIDIA NeMo generative AI framework and the latest NVIDIA Llama Nemotron Reasoning Model, the companies are bringing advanced AI-driven capabilities to chip design, verification and optimization. This combination of AI-powered design tools is expected to boost designer productivity by introducing intelligent conversational assistants, deep reasoning capabilities, and generative AI models for circuit and system design.
CDNS, NVDA Fuel Drug Discovery With AI-Driven Molecular Design
Cadence is also making significant strides in scientific computing and drug discovery through the integration of NVIDIA BioNeMo NIM microservices with Orion, Cadence’s cloud-native molecular design platform. This initiative boosts drug discovery by combining AI and cloud GPUs. Orion gives scientists fast, scalable GPU access for complex calculations, transforming therapeutic design. It brings transformative improvements in AI models for 3D de novo protein structure prediction, small molecule generative AI and foundational AI models for antibody property prediction.
CDNS Builds AI-Powered Digital Twins With NVDA Omniverse
Another milestone in the Cadence-NVIDIA collaboration is the acceleration of AI infrastructure using digital twin technology. CDNS is among the first adopters of the NVIDIA Omniverse blueprint for AI factory digital twins, which will augment data center design and operations.
The integration of NVIDIA Omniverse Viewport, Cadence Allegro X Design Platform, and the Cadence Reality Digital Twin Platform delivers highly accurate visualization for electronic system design, enhanced data analytics for component management, manufacturing interfaces, and system-level quality and smooth collaboration between electronics, mechanical, and industrial design teams.
Heightened demand for its solutions amid robust design activity and disciplined execution are working in favor of Cadence. The focus on Generative AI, Agentic AI and Physical AI is leading to an exponential increase in computing demand and semiconductor innovation.
Amid rapid AI proliferation, the Cadence.ai portfolio is gaining momentum, along with AI-powered products, such as Cadence Cerebrus, SimAI and Allegro X AI, and JedAI data platform. Cadence Cerebrus had more than 300 tape-outs in the fourth quarter. It is eyeing new AI markets like Life Sciences through its OpenEye drug discovery software. The company is also expanding partnerships with its foundry partners like Taiwan Semiconductor Manufacturing, Intel and Arm Holdings.
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have plunged 19.9% in the past year compared with the sub-industry's decline of 6.1%.
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 15%.
Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.
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Cadence & NVIDIA Expand Collaboration to Power AI Innovations
Cadence Design Systems (CDNS - Free Report) recently deepened its multi-year collaboration with NVIDIA (NVDA - Free Report) to accelerate computing and agentic AI solutions. The joined forces will likely address pressing global technology challenges by enhancing computational performance and advancing design and innovation across various industries.
By integrating NVIDIA’s latest Blackwell architecture, Cadence is modernizing its engineering and scientific solutions, empowering designers to solve previously impossible problems with unmatched efficiency. The integration has bolstered computational speedups, including computational fluid dynamics (CFD) simulations reduced by up to 80X, Cadence Spectre X Simulator accelerated by 10X and 3D-IC design and analysis (thermal, stress, and warpage) accelerated by 7X. These improvements not only speed up the development process but also enhance accuracy and efficiency, enabling companies to bring next-generation products to market faster.
The acceleration of CFD simulations using NVIDIA’s Blackwell platform is a promising development. CDNS harnessed the Cadence Fidelity CFD Platform with NVIDIA GB200 GPUs to perform multi-billion cell simulations in under 24 hours. This is a significant leap forward, as similar simulations previously required entire top 500 CPU clusters with hundreds of thousands of cores and several days to complete.
This development is particularly impactful for the aerospace industry, where reducing wind tunnel testing costs and expediting time-to-market are crucial goals. By solving complex CFD challenges, such as takeoff and landing simulations, Cadence and NVIDIA are enabling faster, more cost-effective aerospace engineering.
Cadence Design Systems, Inc. Price and Consensus
Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote
The companies are also collaborating on a full-stack agentic AI solution to transform electronic and system design. By integrating the Cadence JedAI Platform with the NVIDIA NeMo generative AI framework and the latest NVIDIA Llama Nemotron Reasoning Model, the companies are bringing advanced AI-driven capabilities to chip design, verification and optimization. This combination of AI-powered design tools is expected to boost designer productivity by introducing intelligent conversational assistants, deep reasoning capabilities, and generative AI models for circuit and system design.
CDNS, NVDA Fuel Drug Discovery With AI-Driven Molecular Design
Cadence is also making significant strides in scientific computing and drug discovery through the integration of NVIDIA BioNeMo NIM microservices with Orion, Cadence’s cloud-native molecular design platform. This initiative boosts drug discovery by combining AI and cloud GPUs. Orion gives scientists fast, scalable GPU access for complex calculations, transforming therapeutic design. It brings transformative improvements in AI models for 3D de novo protein structure prediction, small molecule generative AI and foundational AI models for antibody property prediction.
CDNS Builds AI-Powered Digital Twins With NVDA Omniverse
Another milestone in the Cadence-NVIDIA collaboration is the acceleration of AI infrastructure using digital twin technology. CDNS is among the first adopters of the NVIDIA Omniverse blueprint for AI factory digital twins, which will augment data center design and operations.
The integration of NVIDIA Omniverse Viewport, Cadence Allegro X Design Platform, and the Cadence Reality Digital Twin Platform delivers highly accurate visualization for electronic system design, enhanced data analytics for component management, manufacturing interfaces, and system-level quality and smooth collaboration between electronics, mechanical, and industrial design teams.
Heightened demand for its solutions amid robust design activity and disciplined execution are working in favor of Cadence. The focus on Generative AI, Agentic AI and Physical AI is leading to an exponential increase in computing demand and semiconductor innovation.
Amid rapid AI proliferation, the Cadence.ai portfolio is gaining momentum, along with AI-powered products, such as Cadence Cerebrus, SimAI and Allegro X AI, and JedAI data platform. Cadence Cerebrus had more than 300 tape-outs in the fourth quarter. It is eyeing new AI markets like Life Sciences through its OpenEye drug discovery software. The company is also expanding partnerships with its foundry partners like Taiwan Semiconductor Manufacturing, Intel and Arm Holdings.
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have plunged 19.9% in the past year compared with the sub-industry's decline of 6.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) and Arista Networks, Inc. (ANET - Free Report) . IDCC presently sports a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2 (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 15%.
Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.