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Cadence's (CDNS) Latest Protium X1 Platform Gaining Traction

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Cadence Design Systems, Inc. (CDNS - Free Report) recently unveiled Protium X1 with robust debug capabilities which will enable software developers to design advanced 5G and AI chips.

The latest platform offers data center scalability, higher capacity levels compared with Protium S1 and multi-MHz performance, which allows customer to reduce time to market.

Moreover, developers can accelerate chip-set design by utilizing Protium X1 desktop-based platform with Palladium Z1 enterprise-based emulation solution.

With Protium X1, developers are expected to design robust FPGAs and SoCs capable of handling complex 5G and AI workloads.

The expansion of Cadence Verification Suite with the latest prototyping platform is expected to aid the company strengthen presence in the Electronic Design Automation (EDA) market against Synopsys (SNPS - Free Report) .

In fact, chip-making giant NVIDIA (NVDA - Free Report) is implementing Protium X1, which is a noteworthy win. NVIDIA aims to speed up development of its high-capacity GPUs for AI, gaming, and automotive domains by utilizing Cadence’s latest FPGA-based platform.


 

Coming to price performance, shares of Cadence have returned 50.8% in past year, significantly outperforming the industry’s rally of 22.6%.

Strategic Expansion of Portfolio Enhances Growth Prospects

Cadence is evolving its silicon-based design strategy with an aim to meet complex computing demands of 5G and AI applications. In fact, the company has carved a new System Analysis Group to focus exclusively on system analysis and design.

The growing clout of AI and 5G chipset making is fueling demand for robust computational software tools. Cadence’s latest Protium X1 platform attempts to serve the purpose and enhance growth prospects of the company.

Notably, per ResearchAndMarkets data, EDA tools market is forecast to hit $17.35 billion by 2024, from $9.76 billion valuation in 2018 at a CAGR of 10.1% between 2019 and 2024.

Moreover, ongoing digital transformation across aerospace, automotive and medical verticals holds promise. Cadence’s association with Northrop Grumman (NOC - Free Report) , which is utilizing the company’s IP and EDA solutions, deserves a special mention in this regard.

Cadence is anticipated to benefit considerably from latest customer wins and product roll outs in strategic growth markets, consequently, favoring the top line.

Zacks Rank

Currently, Cadence carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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