Cadence Design Systems stock is down 20% but has strong growth outlook

From Nasdaq: 2025-04-17 15:19:00

Cadence Design Systems (CDNS) stock has surged 1,300% in the past decade, outperforming rivals like Synopsys and Tech. The company’s modeling and computational software are crucial for driving innovation in semiconductors and beyond.

Cadence stock is trading 20% below its all-time highs and is set to release its first quarter 2025 earnings on April 28. The company’s Intelligent System Design strategy aims to deliver software, hardware, and IP for turning design concepts into reality.

Cadence has seen 15% revenue growth over the past five years, with a record backlog and consistent EPS beats. The company’s partnership with Nvidia aims to drive advancements in accelerated computing and AI, addressing global technology challenges across various industries.

Despite concerns about increasing debt and competition from Synopsys, Cadence stock has consistently outperformed the Tech sector and its rivals. The stock has climbed 3,400% in the last 15 years and is currently trading 20% below its highs.

Wall Street values Cadence’s growth outlook, with the stock trading at a discount to its highs in terms of forward earnings and PEG ratio. Investors might consider buying the stock ahead of its Q1 earnings release on April 28, with a potential breakout on the horizon.

Cadence is offering a limited-time opportunity to access all their picks for $1, including services like Surprise Trader and Technology Innovators. Thousands have taken advantage of this offer, showcasing the potential for double and triple-digit gains in their portfolio services.



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