Key Stats:
- Today’s Price Change: +4.3%
- Current Share Price: $298
- 52-Week High: $329
- Year-to-Date Performance: -4%
- 5-Year Return: $1,000 invested 5 years ago would be worth $3,110 today
What Happened?
Cadence Design Systems (CDNS) shares are up today following the company’s quarterly results after management raised the business’s annual revenue and profit forecasts.
The chip design software provider now expects 2025 revenue to fall between $5.15 billion and $5.23 billion, up from its previous forecast of $5.14 billion to $5.22 billion, citing resilient demand for its products amid the ongoing AI boom. It also raised its forecast for annual adjusted profit per share to $6.73-$6.83, up from $6.65-$6.75 previously.
However, investor concerns over China-related tensions are weighing on the stock. Sales to China accounted for about 11% of total revenue in Q1, down from 12% in the same period last year, and executives noted that annual China revenue would be flat at the midpoint of their forecast.
What the Market Is Telling Us
CDNS stock is rallying despite ongoing geopolitical concerns, signaling that investors are gaining confidence in Cadence’s long-term growth story.
Management emphasized that “software and services are not subject to tariffs” and that their “diversified supply chain” helps protect their hardware business, which seems to have reassured the market.
Today’s positive reaction suggests that investors are focusing more on Cadence’s strong fundamentals and exposure to major clients like Nvidia and Apple, rather than short-term geopolitical risks.
The 4% gain reflects growing optimism that Cadence can continue to thrive even in a challenging global environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
