Cadence Design Systems faces challenges amid market downturn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 30 2024
0mins
Should l Buy CDNS?
Source: Coinmarketcap
Cadence Design Systems Inc's stock has dropped 6.27%, hitting a 20-day low, as the Nasdaq-100 and S&P 500 indices decline by 1.38% and 0.75%, respectively.
Despite the current price decline, analysts from a recent Motley Fool episode suggest that Cadence Design Systems holds a strong position in the design automation sector and may benefit from future technological advancements and increasing market demand. However, the overall market weakness is impacting the stock's performance, indicating a potential sector rotation.
The implications of this downturn highlight the importance of monitoring market trends and the company's ability to adapt to changing conditions. Investors may need to reassess their strategies in light of these developments.
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Analyst Views on CDNS
Wall Street analysts forecast CDNS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDNS is 376.64 USD with a low forecast of 275.00 USD and a high forecast of 418.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 270.140
Low
275.00
Averages
376.64
High
418.00
Current: 270.140
Low
275.00
Averages
376.64
High
418.00
About CDNS
Cadence Design Systems, Inc. is an electronic systems designing company. The Company applies its Intelligent System Design strategy to deliver software, hardware and intellectual property (IP) that turn design concepts into reality. Its product categories include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA includes software, hardware, and services used to design and verify a wide variety of semiconductors. The semiconductor IP portfolio includes silicon subsystems, software, and services that are used in semiconductor design. The SD&A category includes the software and services used to design and verify a wide variety of physical electronic systems. Its semiconductors are used in various industries, including automotive, aerospace, biotech, hyperscale and cloud computing, data centers, telecommunications, medical technology, industrial Internet of things (IIoT), and artificial intelligence (AI).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Confidence: Despite Intel's stock rising over 100% in the past six months, investors remain cautious about its ability to attract external customers, especially after failing to gain Nvidia's support.
- Technical Progress: Intel has made some progress in the production of its 18A process, with CEO Lip-Bu Tan noting steady yield improvements; however, Nvidia's testing results failed to instill confidence in its foundry business, potentially affecting future customer demand.
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- Stock Price Reference: The stock price mentioned in the episode is from December 10, 2025, reflecting market confidence in Cadence Design Systems; despite current price fluctuations, the long-term outlook remains optimistic.
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- Clear Competitive Advantage: Unlike competitors Broadcom and Marvell, Intel's ability to offer a combination of custom chip design, proprietary x86 technology, and in-house manufacturing services enhances its market appeal.
- Experienced Leadership: CEO Tan's successful tenure at Cadence Design Systems positions Intel to capture a larger share of the custom ASIC market, despite currently holding less than 1% market share.
- Support for Foundry Business: Winning custom chip customers will provide Intel with a steady flow of external clients for its foundry services, and while facing manufacturing capacity shortages now, the custom chip business is expected to be a key component of the company's recovery in the coming years.
See More
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- Significant Business Growth: The custom ASIC business surged over 50% in 2025 and grew 26% sequentially in Q4, indicating strong market demand and the company's potential in the custom silicon market, despite overall fourth-quarter results falling short of expectations.
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- Strategic Investment Commitment: Intel's CEO emphasized a commitment to invest more resources in the custom chip market, leveraging his experience at Cadence Design to elevate the company to a leading position in this underdeveloped market segment.
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