As of the closing of the shares of semiconductor main cadenian design systems on February 20. NASDAQ: CDNS Significantly fell in 2025. The fall of shares by 10% is largely associated with its release of income in the 4th quarter, which revealed the disappointing management for 2025. Nevertheless, the company remains part of the basis of one of the most important parts of the market and the economy: advanced chips.
In my opinion, this makes him a strong game in the future, despite the drop. The company sees hundreds of billions of industry growth, from which it can benefit, and, as expected, it will simply come from data processing centers.
CADENCE design systems: The company defeats the assessments of the 4th years, but the disappointment of the leadership
Cadenation design systems today
Cadenation design systems
As of 02.24.2025 21:00
- 52-week range
- $ 241,29
▼
$ 328.99
- P/e ratio.
- 65.53
- Value is valuable
- $ 326.92
Cadence makes key software, which is necessary for driving innovation in the semiconductor industry. Its software for electronic design automation (EDA) is very advanced, and the development of next generation chips is essentially impossible without it. It dominates in this market with Synopsys NASDAQ: SNPSField
Kadens reported the results of the 4th quarter, which surpassed expectations. Its income of 1.36 billion dollars. The United States increased by 27% and was slightly higher than estimates. The adjusted profit per share (EPS) in the amount of $ 1.88 increased by 36% and was $ 0.06 higher than what Wall Sustritis was looking for. Nevertheless, income and income recommendations were missed throughout 2025, which led to a decline in shares.
The average point of the EPS at the middle point of the company in the amount of $ 6.70 amounted to $ 0.10 below Wall Strack, and the income of $ 5.18 billion missed $ 50 million. USA.
It is noteworthy that the company has closed a year with a record lag of $ 6.8 billion. He also had a record current remaining performance obligations (CRPO). The backwardness increased by 13%, which is the same bet as the income at 2024 in 2024, showing that the company’s ability to maintain the same growth rates is strong. However, it predicts a slightly smaller increase of 11.5% in 2025.
Partnership with NVIDIA, Qualcomm and Chinese EV producers strengthens
Cadence retains its income from China by stable by about 13% during the year. From the restrictions on trading for the sale of EDA software to China for advanced chips of artificial intelligence, companies needed other sectors to increase sales in the country.
Cadence coped with Chinese electric vehicles very well. “Almost all” of them are now being designed by chips, according to Cadence.
One of the reasons why I like Cadence is that its technology matters in all parts of the semiconductor industry, and not just in data processing centers. Its software is important for achieving great success in automobile, industrial and consumer segments.
Cadence demonstrates this general value thanks to the deepening relations with NVIDIA NASDAQ: NVDAQualcomm NASDAQ: QcomAnd Chinese manufacturers EV. In addition to the infrastructure of artificial intelligence, the rest of the chips market for some time remained suppressed.
Another interesting metric you need to look at when it comes to the cadence is the rule of 40. This rule states that developers experiencing healthy growth caden was significantly higher than this threshold, which is returned at least by 2019.
The management team noted that 2025 will be the first year when the amount of his leadership for income growth and adjusted operating margin manual exceeds 55%. This signals that, despite the growth, it is expected to decrease a little, the assessments of profitable growth are as optimistic as always.
Looking at the long -term future, the company expects to actively participate in what it sees as the next stage of the Revolution of AI, physical AI. This includes the introduction of AI systems into physical devices, such as cars, robots and drones. In Cadence cars, it sees the value of chips in vehicles that increases 5-10 times. This will lead to an increase in an automatic chip from 200 to 400 billion dollars, similar to the growth predicted in the possibility of a data center.
Analysts Wall -Strite are divided into cadence – Mixed Reach Targed Revions
The forecast of spare cadent design systems today
$ 326.92
29.24% growthModerate purchase
Based on 12 analysts ratings
| High forecast | $ 355.00 |
|---|---|
| Average forecast | $ 326.92 |
| Low forecast | $ 225.00 |
Information about cadenian design systems.
Despite the fall of the shares, Wall analysts -stroke do not agree at all in which direction they must change their ratings. Marketbeat tracked six objectives of analysts, which were updated after release. Three analysts lowered their price targets, two rose, and one repeated.
In general, the average change in their price targets was 0%. In addition, the new price target indicators of these analysts signal the growth of 22% in shares compared to the closing price of Cadence on February 20.
In 2024, the Cadence business survived a healthy growth and expects it to continue in 2025. However, the shares of this company really have not won recently.
I am optimistic at the long -term prospects of Cadence. I believe that this will flourish in the coming years as technological achievements. This fall in Cadence shares provides an attractive opportunity to use this long -term growth.
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