CDNS

Cadence Design Systems, Inc.

TMT


Presented:01/29/2024
Price:$294.37
Cap:$80.09B
Current Price:$269.47
Cap:$73.79B

Presented

Date01/29/2024
Price$294.37
Market Cap$80.09B
Ent Value$63.52B
P/E Ratio83.88x
Book Value$11.45
Div Yield0%
Shares O/S272.06M
Ave Daily Vol1,463,765
Short Int1.34%

Current

Price$269.47
Market Cap$73.79B
Cadence Design Systems, Inc. engages in the design and development of integrated circuits and electronic devices. Its products include electronic design automation, software, emulation hardware, and intellectual property, commonly referred to as verification IP, and design IP. It operates through the following geographical segments: United States, Other Americas, China, Other Asia, Europe, Middle East and Africa and Japan. The company was founded by Alberto Sangiovanni-Vincentelli, Gudmundur A. Hjartarson, K. Bobby Chao, and K. Charles Janac in June 1988 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Cadence Design Systems (CDNS), Tesla Inc (TSLA), Synopsys Inc (SNPS)

Highlights

The presenter is long shares of Cadence Design Systems (CDNS), as the market for chip design tools is expanding rapidly due to the increasing demand for chips driven by AI, 5G, and IoT. Cadence stands to benefit from this growth, as evidenced by their consistent revenue growth in the mid-teens range. Additionally, the rise of non-traditional semiconductor companies like Tesla and Apple, which design their own chips, further contributes to the demand for Cadence's services and should result in strong growth at 50% incremental margins, leading to a mid-teens to 20% IRR for the foreseeable future.

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Idea Discussion

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