Cadence Design Systems, Inc. (NASDAQ: CDNS) is a leading electronic design automation (EDA) company providing software, hardware, and intellectual property for designing integrated circuits, systems-on-chip (SoCs), and electronic systems across industries such as semiconductors, consumer electronics, automotive, and aerospace.
Key Takeaways:
- Cadence’s diverse product offerings span software solutions, hardware platforms, and IP cores
- The company serves critical industries including consumer electronics, automotive, aerospace, and 5G communications
- AI integration in Cadence’s tools is expected to drive future growth and maintain its competitive edge
Overview of Cadence Design Systems, Inc.
Cadence Design Systems, Inc. was founded in 1983 as Solomon Design Automation (SDA). However, it officially became known as Cadence Design Systems in 1988 when SDA Systems merged with ECAD, Inc. The company’s tools are essential for designing and verifying advanced semiconductors, integrated circuits, and full electronic systems.
Cadence’s key acquisitions:
- Valid Logic Systems (1991): Enhanced formal verification capabilities.
- OrCAD (1999): Strengthened PCB design tools portfolio.
- Verisity (2005): Advanced verification technologies added.
- Tensilica (2013): Gained customizable processor architecture expertise.
- AWR Corporation (2018): Improved RF and microwave design capabilities.
Cadence Design Systems, Inc. Company Profile
| Country | United States |
| Ticker Symbol | CDNS |
| Exchange | NASDAQ |
| Founded | 1983 |
| IPO Date | 1997 |
| Industry | Electronic Design Automation (EDA) |
| Sector | Technology |
| Employees | 12,665 |
| CEO | Anirudh Devgan |
| Market Cap (September 19, 2024) | $76.77 billion |
| Website | cadence |
Cadence Design Systems, Inc. (CDNS) Balance Sheet Analysis
Cadence Design Systems, Inc. (NASDAQ: CDNS) demonstrated a robust financial position in its 2023 balance sheet. The company’s total assets grew to $5.67 billion, a 10.4% increase from 2022, while total liabilities decreased to $2.27 billion.
Shareholders’ equity rose significantly by 24% to $3.40 billion, strengthening Cadence’s financial foundation. The company’s total capitalization reached $3.70 billion, a 9.2% improvement from the previous year.
Cadence effectively managed its debt, reducing it to $764 million, down 13.9% from 2022. The company maintained a healthy working capital of $385 million, ensuring sufficient liquidity for operations.
Net tangible assets saw a remarkable increase of 50.7% to $1.53 billion, bolstering Cadence’s overall financial position. These figures reflect the company’s strong performance and position in the electronic design automation market.
Balance Sheet Data Source: finance.yahoo
Cadence Design Systems, Inc. Stock Price History
Cadence Design Systems, Inc. (NASDAQ: CDNS) had its IPO in the year 1987. Cadence Design Systems (CDNS) has undergone three stock splits in its history. The first was a 3:2 split on October 31, 1995, followed by another 3:2 split on June 3, 1996. The most recent was a 2:1 split on November 17, 1997. Cumulatively, one share bought before the first split now equals 4.5 shares.1
As of September 19, 2024, the stock price stands at $280.35.
CDNS Stock Price Forecast 2024
In 2024, we expect Cadence stock to show steady growth. The increasing demand for advanced chip design tools, particularly in areas like AI and 5G, is likely to drive growth. We project a 10% increase from the current price.
Cadence’s Virtuoso Platform, used for custom IC design in analog and mixed-signal applications, is expected to see increased adoption in 2024, particularly in the consumer electronics and automotive sectors.
The company’s focus on integrating AI into its design processes is likely to enhance its competitive edge, attracting more customers seeking efficient and innovative design solutions.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2024 | $244.37 | $308.39 | $370.06 |
CDNS Stock Price Forecast 2025
For 2025, we anticipate further growth as Cadence’s AI-driven tools gain more traction in the market. The stock price is expected to rise by approximately 11% from 2024.
The company’s PSpice analog circuit simulator is likely to see increased integration with PCB schematic tools, enhancing its appeal to designers working on complex electronic systems.
Cadence’s hardware solutions, including the Palladium Z1 enterprise emulation platform, are expected to gain market share in large-scale verification tasks for complex chip designs.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2025 | $326.75 | $342.31 | $410.77 |
CDNS Stock Price Forecast 2026
In 2026, we foresee continued expansion in Cadence’s market share, driven by its comprehensive product portfolio. We project a 12% increase from 2025.
Cadence’s Allegro, a high-performance PCB design tool, is expected to gain market share in 2026, particularly due to its advanced capabilities in signal integrity and power integrity analysis.
The company’s IP cores for memory interfaces and analog components are likely to see increased adoption, facilitating faster development cycles across various industries.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2026 | $365.96 | $383.39 | $460.06 |
CDNS Stock Price Forecast 2027
The year 2027 could see accelerated growth as Cadence’s tools become increasingly essential in emerging technologies. We expect a 13% rise from 2026.
The Genus and Innovus tools for digital implementation and signoff are likely to see increased adoption in 2027, driven by the growing complexity of digital circuit designs.
Cadence’s professional services, including training and consulting, may experience higher demand as companies seek to maximize the benefits of advanced design tools.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2027 | $413.53 | $433.23 | $519.87 |
CDNS Stock Price Forecast 2028
By 2028, Cadence’s position in the EDA market is likely to strengthen further. We project a 14% increase from 2027.
Spectre X, Cadence’s parallel circuit simulator, is expected to gain popularity in 2028 as designers seek to accelerate simulation processes across multiple CPUs for complex designs.
The company’s tools for consumer electronics design are likely to see significant growth, driven by the continued evolution of smart devices and wearable technology.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2028 | $471.43 | $493.88 | $592.65 |
CDNS Stock Price Forecast 2029
In 2029, we anticipate continued robust growth as Cadence’s AI-integrated tools become industry standard. We expect a 15% rise from 2028.
Cerebrus, Cadence’s AI-driven chip design tool, is likely to see widespread adoption in 2029, optimizing digital design flows and improving efficiency for chip designers.
The automotive systems sector is expected to drive significant demand for Cadence’s tools, particularly in the design of advanced driver assistance systems and autonomous vehicles.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2029 | $542.14 | $567.96 | $681.55 |
CDNS Stock Price Forecast 2030
By 2030, Cadence’s role in enabling advanced chip designs for AI, quantum computing, and other emerging technologies could drive significant value. We project a 10% increase from 2029.
The Palladium Z1 enterprise emulation platform is expected to play a crucial role in 2030, supporting large-scale verification tasks for increasingly complex chip designs.
Cadence’s tools for aerospace and defense applications are likely to see increased adoption, supporting the design of advanced avionics and communication systems. This trend aligns with growth projections in other tech-driven sectors, such as the KLA Corporation stock forecast, which also benefits from advancements in semiconductor technology.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2030 | $596.35 | $624.76 | $749.71 |
CDNS Stock Price Forecast 2031
In 2031, we expect Cadence to continue its growth, benefiting from the ongoing digital transformation across industries. We anticipate an 11% rise from 2030.
Cadence’s Protium prototyping platform is likely to see increased demand in 2031, as it enables more effective verification of complex chip designs in emerging technologies.
The company’s solutions for healthcare applications are expected to gain traction, supporting the design of advanced medical devices and diagnostic equipment.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2031 | $661.95 | $693.48 | $832.17 |
CDNS Stock Price Forecast 2032
For 2032, we project further expansion in Cadence’s market presence, driven by its comprehensive suite of design tools. We expect a 12% increase from 2031.
The company’s IP cores for memory interfaces and analog components are expected to gain traction in 2032, facilitating faster development cycles for customers across various industries.
Cadence’s tools for hyperscale computing are likely to see increased demand, supporting the design of advanced data center architectures and high-performance computing systems.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2032 | $741.38 | $776.70 | $932.04 |
CDNS Stock Price Forecast 2033
In 2033, Cadence’s continued innovation in AI-driven design tools could fuel substantial growth. We anticipate a 13% rise from 2032.
Cadence’s professional services, including training and consulting, are likely to see increased demand in 2033 as companies seek to maximize the benefits of Cadence’s advanced design tools.
The company’s solutions for 5G communications are expected to play a crucial role in the ongoing evolution of wireless network technologies and infrastructure.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2033 | $837.76 | $877.67 | $1,053.20 |
CDNS Stock Price Forecast 2034
By 2034, Cadence’s solutions may become even more critical in an increasingly connected world. We project a 14% increase from 2033.
The company’s tools for consumer electronics design are expected to see significant growth in 2034, driven by the continued evolution of smart devices and wearable technology.
Cadence’s Virtuoso Platform is likely to remain a key player in custom IC design, particularly for analog and mixed-signal applications in emerging technologies.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2034 | $955.05 | $1,000.54 | $1,200.65 |
CDNS Stock Price Forecast 2035
In 2035, we expect Cadence to maintain its growth momentum, driven by its role in enabling advanced technological developments. We anticipate a 15% rise from 2034.
Cadence’s solutions for automotive systems design are likely to experience rapid growth in 2035, fueled by advancements in electric and autonomous vehicle technologies.
The company’s PSpice analog circuit simulator is expected to see increased integration with advanced PCB design tools, supporting the development of complex electronic systems. This trend towards integration and advanced development tools is similar to what we see in other industries, as reflected in the ExxonMobil stock prediction, which factors in technological advancements in the energy sector.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2035 | $1,098.31 | $1,150.62 | $1,380.74 |
CDNS Stock Price Forecast 2036
For 2036, we project continued strong growth as Cadence’s tools become increasingly indispensable in chip and system design. We expect a 10% increase from 2035.
The aerospace and defense sector is expected to drive significant demand for Cadence’s tools in 2036, particularly for designing advanced avionics and communication systems.
Cadence’s Allegro PCB design tool is likely to see increased adoption, driven by the growing complexity of electronic systems across various industries.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2036 | $1,208.14 | $1,265.68 | $1,518.82 |
CDNS Stock Price Forecast 2037
In 2037, Cadence’s market position could further strengthen, driven by its comprehensive product portfolio and continued innovation. We anticipate an 11% rise from 2036.
Cadence’s tools for healthcare applications are likely to see increased adoption in 2037, supporting the design of advanced medical devices and diagnostic equipment.
The company’s Genus and Innovus tools for digital implementation and signoff are expected to play a crucial role in designing increasingly complex digital circuits.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2037 | $1,341.03 | $1,404.91 | $1,685.89 |
CDNS Stock Price Forecast 2038
By 2038, Cadence may play an even more crucial role in enabling advanced technologies. We project a 12% increase from 2037.
The hyperscale computing sector is expected to drive significant demand for Cadence’s design tools in 2038, as data centers continue to expand and evolve.
Cadence’s Spectre X parallel circuit simulator is likely to see increased adoption, supporting the design of complex analog and mixed-signal circuits in various applications.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2038 | $1,501.95 | $1,573.50 | $1,888.20 |
CDNS Stock Price Forecast 2039
In 2039, we expect Cadence to continue its upward trend, benefiting from the ongoing digital transformation across industries. We anticipate a 13% rise from 2038.
Cadence’s tools for 5G communications design are likely to see continued growth in 2039, supporting the ongoing evolution and expansion of wireless network technologies.
The company’s Cerebrus AI-driven chip design tool is expected to revolutionize digital design flows, significantly improving efficiency and performance across various industries.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2039 | $1,697.21 | $1,778.05 | $2,133.66 |
CDNS Stock Price Forecast 2040
For 2040, we project substantial growth as Cadence’s solutions become increasingly essential in an AI-driven world. We expect a 14% increase from 2039.
The integration of AI in Cadence’s design processes is expected to reach new heights in 2040, with tools like the Optimality Intelligent System Explorer revolutionizing system design practices.
Cadence’s Palladium Z1 enterprise emulation platform is likely to play a crucial role in verifying increasingly complex chip designs for emerging technologies like quantum computing. This aligns with long-term projections for other innovative companies, such as the GSK stock price performance, which considers advancements in pharmaceutical technologies.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2040 | $1,934.82 | $2,026.98 | $2,432.37 |
CDNS Stock Price Forecast 2050
Looking ahead to 2050, we anticipate Cadence to have established itself as a key enabler of technological advancement. Our long-term projection sees the stock price reaching $8600, reflecting the company’s crucial role in shaping the future of electronic design.
By 2050, Cadence’s tools are expected to be at the forefront of quantum computing design, enabling the development of revolutionary computing architectures that could transform multiple industries.
The company’s comprehensive suite of software solutions, hardware platforms, and IP cores is likely to form the backbone of electronic design across various sectors, from consumer electronics to aerospace and defense.
| Year | Low Price | Average Price | High Price |
|---|---|---|---|
| 2050 | $8,084.00 | $8,600.00 | $10,320.00 |
Conclusion
Our analysis suggests a promising long-term outlook for Cadence Design Systems, Inc. (NASDAQ: CDNS) stock. We project growth to $8600 by 2050, representing a remarkable increase of over 2900%. This forecast is based on Cadence’s strong market position, diverse product portfolio, and continued innovation in critical areas such as AI-driven design tools.
FAQs
1. What is the future of CDNS share price?
Based on our analysis, the future of Cadence Design Systems, Inc. (CDNS) share price appears promising. We project steady growth over the coming decades, driven by increasing demand for advanced chip design tools and Cadence’s strong position in emerging technologies. Our forecast suggests the stock price could reach $2,026.98 by 2040 and potentially $8,600 by 2050. This growth is expected to be fueled by Cadence’s continued innovation in AI-driven design tools, expansion into new markets such as healthcare and automotive, and the increasing complexity of electronic systems across various industries.
2. Is CDNS a good long-term stock?
CDNS appears to be a strong candidate for long-term investment. The company’s diverse product portfolio, which includes software solutions, hardware platforms, and IP cores, positions it well to benefit from ongoing technological advancements. Cadence’s focus on integrating AI into its design processes and its expansion into crucial sectors like 5G communications, hyperscale computing, and quantum computing suggest potential for sustained growth. The projected steady increase in stock price over the next several decades indicates that CDNS could be a valuable addition to a long-term investment portfolio.
3. What is the CDNS 10 year outlook?
The 10-year outlook for CDNS is positive. Based on our projections, the stock price could grow from its current value of $280.35 (as of September 19, 2024) to approximately $1,150.62 by 2035. This represents a potential increase of over 300% in a decade. Key drivers for this growth include the expected increased adoption of Cadence’s AI-driven tools, growing demand in sectors like automotive systems and healthcare, and the company’s strong position in emerging technologies. The continued evolution of Cadence’s core products, such as the Virtuoso Platform and Allegro PCB design tool, is also expected to contribute to this growth.
4. Is CDNS a buy hold or sell?
Given the projected long-term growth and Cadence’s strong position in the electronic design automation industry, CDNS could be considered a “buy” or “hold” for investors with a long-term perspective. The company’s consistent innovation, diverse product portfolio, and expansion into high-growth sectors suggest potential for continued value appreciation.
5. Who are the major competitors of CDNS?
The major competitors of Cadence Design Systems, Inc. (NASDAQ: CDNS):
- Synopsys, Inc. (NASDAQ: SNPS): A leader in electronic design automation (EDA) software, Synopsys provides tools for designing and testing integrated circuits and systems.
- Ansys, Inc. (NASDAQ: ANSS): Specializes in engineering simulation software used for product design and optimization across various industries including aerospace and automotive.
- Siemens AG (ETR: SIE): Siemens offers industrial software solutions, including EDA tools, through its acquisition of Mentor Graphics, serving the semiconductor industry.
- Autodesk, Inc. (NASDAQ: ADSK): Known for design software in engineering, manufacturing, and architecture, Autodesk competes in the 3D design and simulation space.
- Altair Engineering Inc. (NASDAQ: ALTR): Altair provides simulation-driven design software for optimizing product performance, focusing on industries such as automotive and aerospace.
- Dassault Systèmes SE (EPA: DSY): Known for its 3D experience platform, Dassault delivers product lifecycle management (PLM) and design software for multiple industries.
- PTC Inc. (NASDAQ: PTC): Offers computer-aided design (CAD) and product lifecycle management (PLM) software to improve product development processes.
- Keysight Technologies, Inc. (NYSE: KEYS): Provides testing and simulation software for electronic design automation (EDA) used in various sectors, including telecommunications.
- Zuken Inc. (TYO: 6947): A Japanese company that focuses on PCB design and EDA software, Zuken serves industries such as aerospace, automotive, and electronics.
- Aspen Technology, Inc. (NASDAQ: AZPN): Specializes in software for optimizing asset performance and design in industries like chemicals, manufacturing, and energy.
Disclaimer:
The stock price predictions provided herein are based on historical data, current market trends, and analysis. However, past performance does not guarantee future results. Stock markets are inherently volatile and subject to numerous economic, political, and market factors that can cause rapid and unpredictable fluctuations in stock prices. The information provided is for educational and informational purposes only and should not be construed as financial advice. It is strongly recommended that you consult with a qualified financial advisor before making any investment decisions. Invest responsibly and consider your individual financial situation, risk tolerance, and investment objectives before acting on any information provided.
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