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Price · 1Y
$326.24
Thesis
Cadence is the other half of the EDA duopoly. Particularly strong in custom and analog flows, emulation hardware, and system-level analysis, it is indispensable to AI-accelerator and hyperscaler-custom-silicon programs. Palladium emulation boxes are sold as physical hardware and add a capex-like revenue line on top of software.
The combination of structural moats, hardware emulation tailwinds, and AI-chip design intensity makes Cadence a clean way to own the AI design cycle.
Catalysts
- Custom-silicon program proliferation at hyperscalers
- Palladium and Protium hardware refresh cycles
- AI-assisted design tools (Cadence.AI) monetization
- System-level analysis and 3D-IC tool adoption