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Cadence Design Sys

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

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Cadence Design Systems, Inc. - Common Stock

Cadence Design Systems Inc

CADENCE DESIGN SYSTEMS ORD

<p>Wall Street surged on Wednesday as traders cheered a pullback in oil prices and the lack of escalation in the Middle East, particularly regarding potential <a href="https://www.benzinga.com/markets/asia/24/10/41257792/oil-dips-to-73-as-china-withholds-stimulus-biden-attempts-to-contain-netanyahu-over-israels-attack-o">Israeli retaliation against Iran. </a></p>
<p>The broader market gains reflected optimism ahead of Thursday&#8217;s Consumer Price Index inflation report and the start of <a href="https://www.benzinga.com/markets/24/10/41249837/s-p-500-earnings-season-kicks-off-why-analysts-call-this-quarter-a-stock-pickers-paradise">third-quarter earnings season.</a></p>
<h3 class="wp-block-heading">S&amp;P 500 Sets New Record</h3>
<p>The S&amp;P 500, as tracked by the <strong>SPDR S&amp;P 500 ETF Trust </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), climbed 0.8% to a fresh record high, closing at 5,792 points, near its intraday peak. </p>
<p>Blue-chip stocks also rallied, with the <strong>SPDR Dow Jones Industrial Average ETF </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) ending the day at <strong>42,512 points</strong>, up 1%, just shy of its all-time high of 42,628 reached in late September.</p>
<p>The tech-heavy Nasdaq 100, tracked by the <strong>Invesco QQQ Trust </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), ended 0.8% higher, closing at 20,268 points, its highest level since July 2024. </p>
<p>Small caps, as represented by the <strong>iShares Russell 2000 ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), inched up by 0.2%, underperforming versus large-cap counterparts. </p>
<h3 class="wp-block-heading">Fed Minutes Highlight Rate Cut Debate</h3>
<p>Investors digested the minutes from the September Federal Open Market Committee (FOMC) meeting, which revealed extensive debate over whether to cut rates by 25 or 50 basis points.</p>
<p>Ultimately, the committee opted for the larger 50-basis-point cut, but the discussion underscored the ongoing uncertainty about the <a href="https://www.benzinga.com/markets/equities/24/10/41257938/fed-minutes-reveal-heated-debate-over-september-interest-rate-move-traders-trim-november-easing-">Federal Reserve's next moves.</a></p>
<h3 class="wp-block-heading">Sector Highlights: Tech Outperforms, Utilities Lags</h3>
<ul>
<li>The technology sector outperformed, rising 1.1%, while health care followed closely behind.</li>
<li>Utilities were the only sector to close in the red, down 0.9%.</li>
<li>Cruise lines were the notable industry gainers surged as lower fuel costs improved their outlook, while solar stocks and gold miners struggled under pressure from rising Treasury yields.</li>
</ul>
<h3 class="wp-block-heading">Top 5 Performers On The S&amp;P 500</h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<thead>
<tr>
<th><strong>Name</strong></th>
<th><strong>Last</strong></th>
<th><strong>% Change</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Norwegian Cruise Line Holdings</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>)</td>
<td>23.06</td>
<td>10.86%</td>
</tr>
<tr>
<td><strong>Carnival Corporation</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>)</td>
<td>20.20</td>
<td>7.02%</td>
</tr>
<tr>
<td><strong>Royal Caribbean Cruises Ltd</strong>. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>)</td>
<td>193.01</td>
<td>5.25%</td>
</tr>
<tr>
<td><strong>Corning Incorporated</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLW#NYSE">GLW</a>)</td>
<td>46.74</td>
<td>4.82%</td>
</tr>
<tr>
<td><strong>Super Micro Computer, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>)</td>
<td>47.28</td>
<td>4.26%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<h3 class="wp-block-heading">Worst 5 Performers On The S&amp;P 500</h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<thead>
<tr>
<th><strong>Name</strong></th>
<th><strong>Last</strong></th>
<th><strong>% Change</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Constellation Energy Corporation</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>262.24</td>
<td>-6.14%</td>
</tr>
<tr>
<td><strong>NRG Energy, Inc</strong>. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>)</td>
<td>88.54</td>
<td>-5.36%</td>
</tr>
<tr>
<td><strong>The Boeing Company</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)</td>
<td>149.43</td>
<td>-3.37%</td>
</tr>
<tr>
<td><strong>Vistra Corp.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td>
<td>124.23</td>
<td>-2.91%</td>
</tr>
<tr>
<td><strong>Western Digital Corporation</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>)</td>
<td>64.47</td>
<td>-2.58%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<h3 class="wp-block-heading">Nasdaq 100&#8217;s Top 5 Gainers</h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<thead>
<tr>
<th><strong>Name</strong></th>
<th><strong>Last</strong></th>
<th><strong>% Change</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>MongoDB, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>)</td>
<td>275.48</td>
<td>6.17%</td>
</tr>
<tr>
<td><strong>Atlassian Corporation</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>)</td>
<td>177.06</td>
<td>5.38%</td>
</tr>
<tr>
<td><strong>Zscaler, Inc</strong>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>)</td>
<td>185.93</td>
<td>5.09%</td>
</tr>
<tr>
<td><strong>Super Micro Computer, Inc. </strong></td>
<td>47.28</td>
<td>4.26%</td>
</tr>
<tr>
<td><strong>Cadence Design Systems, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>)</td>
<td>279.62</td>
<td>3.50%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<h3 class="wp-block-heading">Nasdaq 100&#8217;s Worst 5 Performers </h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<thead>
<tr>
<th><strong>Name</strong></th>
<th><strong>Last</strong></th>
<th><strong>% Change</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Constellation Energy Corporation</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>262.24</td>
<td>-6.14%</td>
</tr>
<tr>
<td><strong>PDD Holdings Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>)</td>
<td>141.50</td>
<td>-2.32%</td>
</tr>
<tr>
<td><strong>Alphabet Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)</td>
<td>163.09</td>
<td>-1.57%</td>
</tr>
<tr>
<td><strong>Tesla, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>241.06</td>
<td>-1.41%</td>
</tr>
<tr>
<td><strong>Advanced Micro Devices, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)</td>
<td>171.00</td>
<td>-1.04%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<p><em>Image created using artificial intelligence via MidJourney. </em></p>


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Bulls Stampede On Wall Street: S&P 500 Smashes All-Time Highs, Dow Jones Marks Record Close, Nasdaq 100 Hits Mid-July Levels

<p>Rosenblatt  analyst Blair Abernethy   maintains Cadence Design Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) with a Neutral and maintains $280 price target.</p>


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Rosenblatt Maintains Neutral on Cadence Design Sys, Maintains $280 Price Target

<p><strong>Synopsys</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/snps#NASDAQ">SNPS</a>) shares have experienced a pullback in recent times, with shares now trading 19.7% below its 52-week high of $629.38 achieved on Sept. 30.</p>
<p>Over the past three months, Synopsys shares have plunged 16.9%, underperforming the broader Zacks Computer &amp; Technology Sector&#39;s decline of 1.1% and the Zacks Computer &ndash; Software industry&#39;s fall of 2.7%.</p>
<p>Synopsys is currently facing several challenges, including a rise in cost of revenues and operating expenses. In the third quarter of fiscal 2024, these costs increased to $1.17 billion compared to $1.01 billion in the same period last year. This sharp rise has raised concerns about the company&#39;s ability to manage its rising costs effectively.</p>
<p>SNPS faces intense competition in the semiconductor and electronic design automation (EDA) space, which has been a headwind. Delays in realizing synergies from recent acquisitions have been a concern.</p>
<div class="chart_embed">
<h2>Synopsys, Inc. Price and Consensus</h2>
<p><img alt="Synopsys, Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/2b/1727786842.png" style="height:278px; width:620px" title="" /></p>
<p>Synopsys, Inc. price-consensus-chart | Synopsys, Inc. Quote</p>
<p>Does the dip in SNPS shares make the stock attractive? Let&#39;s analyze.</p>
</div>
<h2>Synopsys Prospects Ride on Strong Portfolio</h2>
<p>Synopsys&#39; innovative product lineup is expected to boost its prospects. The shift toward hybrid working is driving demand for higher bandwidth, which bodes well for the company&#39;s solutions. The rising demand for AI, 5G and IoT benefits SNPS&#39; prospects.</p>
<p>Synopsys reported strong revenues in the third quarter of fiscal 2024, with revenues increasing 13% year over year to $1.53 billion, in line with the Zacks Consensus Estimate.</p>
<p>SNPS anticipates achieving approximately 15% revenue growth for fiscal 2024. For fiscal 2024, it expects revenues between $6.105 billion and $6.135 billion.</p>
<p>The Zacks Consensus Estimate for revenues is pegged at $6.13 billion, indicating year-over-year growth of 4.93%.</p>
<p>For fiscal 2024, non-GAAP earnings are expected in the range of $13.07-$13.12 per share. The consensus mark for earnings is pegged at $13.12 per share, unchanged over the past 30 days.</p>
<p>For the fourth quarter of 2024, Synopsys expects revenues between $1.614 billion and $1.644 billion. The Zacks Consensus Estimate for fourth-quarter fiscal 2024 is currently pegged at 3.28 per share, up by a penny over the past 30 days.</p>
<p>Non-GAAP earnings are expected to be between $3.27 per share and $3.32 per share. The consensus mark for fourth-quarter fiscal 2024 revenues is pegged at $1.62 billion, indicating year-over-year growth of 1.01%.</p>
<h2>Will Acquisitions Help SNPS Stock Rebound?</h2>
<p>Synopsys has made several acquisitions to expand its product portfolio and drive growth. Over the past five years, it acquired more than 15 companies, including Intrinsic ID and Valtrix in 2024.&nbsp;</p>
<p>Synopsys is in the process of acquiring<strong> ANSYS</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>), a move designed to strengthen its Silicon to Systems strategy, particularly in sectors such as automotive, aerospace and industrial. This acquisition is expected to expand Synopsys&#39; customer base and enhance its product offerings.</p>
<h2>Slowing Top-Line Growth, Stiff Competition Concerns for SNPS</h2>
<p>Synopsys&#39; Design Automation segment saw slower growth in the third quarter of fiscal 2024. Revenues from this segment increased a modest 6% year over year, reaching $1.06 billion. In comparison, the same segment saw 23% growth in the third quarter of fiscal 2023, reaching $1.0 billion.</p>
<p>This downturn was due to tough competition in the EDA market, where Synopsys competes with major players like <strong>Cadence Design Systems</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) and Mentor Graphics.&nbsp;</p>
<p>Unfavorable forex and a challenging macroeconomic environment are major deterrents for investors.</p>
<h2>Zacks Rank &amp; Valuation</h2>
<p>Synopsys currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock.</p>
<p>Its Value Score of D indicates a stretched valuation at this moment.</p>
<p>In terms of forward Price/Earnings, SNPS is currently trading at 34.82X, higher than the broader sector&#39;s 32.33X.</p>
<h2>A Top-Ranked Stock to Consider</h2>
<p><strong>Progress Software </strong>(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/prgs#NASDAQ">PRGS</a>) is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy).</p>
<p>Long term earnings growth rate is currently pegged at 2%. Progress Software shares have appreciated 23.2% year to date.</p>
<p><a href="https://www.zacks.com/stock/news/2344135/snps-drops-20-from-52-week-high-is-the-stock-worth-buying-on-dip?cid=CS-BENZ-FT-analyst_blog|rank_focused-2344135">To read this article on Zacks.com click here.</a></p>


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SNPS Drops 20% From 52-Week High: Is the Stock Worth Buying on Dip?

<p>The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock&#39;s price. Do they really matter, though?</p>
<p>Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let&#39;s see what these Wall Street heavyweights think about <strong>Cadence Design Systems</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>).</p>
<p>Cadence currently has an average brokerage recommendation of 1.64, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 14 brokerage firms. An ABR of 1.64 approximates between Strong Buy and Buy.</p>
<p>Of the 14 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 71.4% and 7.1% of all recommendations.</p>
<h2>Brokerage Recommendation Trends for CDNS</h2>
<p><img alt="Broker Rating Breakdown Chart for CDNS" class="chart" src="https://staticx-tuner.zacks.com/images/yesopchart/brokerage_bar/CDNS_10012024.png" style="width:100%" title="" /><br />
The ABR suggests buying Cadence, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.</p>
<p>Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five &quot;Strong Buy&quot; recommendations for every &quot;Strong Sell&quot; recommendation.</p>
<p>In other words, their interests aren&#39;t always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock&#39;s price movement.</p>
<p>Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock&#39;s price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.</p>
<h2>ABR Should Not Be Confused With Zacks Rank</h2>
<p>Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.</p>
<p>The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.</p>
<p>Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.</p>
<p>In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.</p>
<p>Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.</p>
<p>Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company&#39;s changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.</p>
<h2>Is CDNS Worth Investing In?</h2>
<p>In terms of earnings estimate revisions for Cadence, the Zacks Consensus Estimate for the current year has declined 0.1% over the past month to $5.88.</p>
<p>Analysts&#39; growing pessimism over the company&#39;s earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.</p>
<p>The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Cadence.</p>
<p>Therefore, it could be wise to take the Buy-equivalent ABR for Cadence with a grain of salt.</p>
<p><a href="https://www.zacks.com/stock/news/2343978/wall-street-analysts-think-cadence-cdns-is-a-good-investment-is-it?cid=CS-BENZ-FT-fundamental_analysis|average_broker_rating-2343978">To read this article on Zacks.com click here.</a></p>


Wall Street Analysts Think Cadence Is a Good Investment: Is It?

<p><strong>Cadence Design Sys's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NYSE">CDNS</a>) short percent of float has risen 7.3% since its last report. The company recently reported that it has <strong>3.56 million shares sold short</strong>, which is 1.47% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 1.9 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Cadence Design Sys Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1727363723_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Cadence Design Sys has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Cadence Design Sys's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cadence Design Sys's peer group average for short interest as a percentage of float is 3.26%, which means the company has <strong>less</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Short Ideas

Looking Into Cadence Design Sys's Recent Short Interest

TSMC And Cadence Collaborate To Deliver AI-Driven Advanced-Node Design Flows And 3D-IC Solutions; Support For TSMC N2P, N3, And A16 Technologies With Silicon-Proven GDDR7 IP And Cloud-Based Secure Chip Design

<p>In the preceding three months, 7 analysts have released ratings for Cadence Design Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>), presenting a wide array of perspectives from bullish to bearish.</p>
<p>In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $305.71, with a high estimate of $341.00 and a low estimate of $225.00. Observing a downward trend, the current average is 3.41% lower than the prior average price target of $316.50. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1727272857_0.png" alt="price target chart" /></p>
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
<p>An in-depth analysis of recent analyst actions unveils how financial experts perceive Cadence Design Sys. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Edward Yang</td>
<td>Oppenheimer</td>
<td>Announces</td>
<td>Underperform</td>
<td>$225.00</td>
<td>-</td>
</tr>
<tr>
<td>Blair Abernethy</td>
<td>Rosenblatt</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$280.00</td>
<td>$280.00</td>
</tr>
<tr>
<td>Clarke Jeffries</td>
<td>Piper Sandler</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$318.00</td>
<td>$318.00</td>
</tr>
<tr>
<td>Joe Vruwink</td>
<td>Baird</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$338.00</td>
<td>$341.00</td>
</tr>
<tr>
<td>Charles Shi</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$320.00</td>
<td>$320.00</td>
</tr>
<tr>
<td>Clarke Jeffries</td>
<td>Piper Sandler</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$318.00</td>
<td>$318.00</td>
</tr>
<tr>
<td>Joe Vruwink</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$341.00</td>
<td>$322.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cadence Design Sys. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cadence Design Sys compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts navigate through adjustments in price targets, providing estimates for Cadence Design Sys's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
<p>Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Cadence Design Sys's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/CDNS/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Cadence Design Sys analyst ratings.</strong></a></p>
<h2>Unveiling the Story Behind Cadence Design Sys</h2>
<p>Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.</p>
<h3>Unraveling the Financial Story of Cadence Design Sys</h3>
<p><strong>Market Capitalization:</strong> Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.</p>
<p><strong>Revenue Growth:</strong> Cadence Design Sys's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately <strong>8.61%</strong>. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.</p>
<p><strong>Net Margin:</strong> The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of <strong>21.64%,</strong> the company showcases strong profitability and effective cost control.</p>
<p><strong>Return on Equity (ROE):</strong> Cadence Design Sys's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of <strong>5.86%,</strong> the company showcases efficient use of equity capital and strong financial health.</p>
<p><strong>Return on Assets (ROA):</strong> The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of <strong>3.55%,</strong> the company showcases effective utilization of assets.</p>
<p><strong>Debt Management:</strong> Cadence Design Sys's debt-to-equity ratio is below the industry average. With a ratio of <b>0.32</b>, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.</p>
<h2>The Significance of Analyst Ratings Explained</h2>
<p>Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.</p>
<p>Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.</p>
<p><strong>Which Stocks Are Analysts Recommending Now?</strong></p>
<p>Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights"><strong>Click here to stay ahead of the market</strong></a>.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Cadence Design Sys Stock: A Deep Dive Into Analyst Perspectives (7 Ratings)

<p>Oppenheimer  analyst Edward Yang   initiates coverage on Cadence Design Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) with a Underperform rating and announces Price Target of $225.</p>


Initiation

Oppenheimer Initiates Coverage On Cadence Design Sys with Underperform Rating, Announces Price Target of $225

WIIM

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AIRE

AIXI

ASAN

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MicroCloud Hologram Inc. - Ordinary Shares

HOLO

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Shares of software companies are trading higher amid overall market strength following Wednesday's Fed rate cut.

<p>Bulls are stampeding across Wall Street on Thursday in the wake of the Federal Reserve&#8217;s decision to cut interest rates for the first time<a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead"> in over four years</a>.</p>
<p>The central bank&#8217;s bold move, a 50-basis-point cut, caught analysts off guard and sent the U.S. stock market to fresh record highs at the opening of Thursday&#8217;s session.</p>
<p>The S&amp;P 500 soared to a new all-time high, reaching 5,700 points. Similarly, the Dow Jones Industrial Average climbed to an unprecedented 42,000 points.</p>
<p>In the first 30 minutes of trading, the S&amp;P 500 and Dow Jones rose by 1.4% and 1%, respectively. The Nasdaq 100 climbed 1.5%, although the Russell 2000, representing small-cap stocks, outperformed with a surge of over 2%.</p>
<p>The market rally was primarily driven by the Magnificent Seven: <strong>Microsoft Corp.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), <strong>Apple Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), <strong>NVIDIA Corp.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), <strong>Alphabet Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), <strong>Amazon Inc</strong>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), <strong>Meta Platforms Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and <strong>Tesla, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). Each of the Magnificent Seven are recording daily gains ranging from 1.5% to 4.5%, solidly in positive territory.</p>
<h3 class="wp-block-heading">Chart: S&amp;P 500 Hits Record Highs</h3>
<p><figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="447" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155-1024x447.png" alt="" class="wp-image-556397" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155-1024x447.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155-300x131.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155-768x336.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155-1536x671.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/19100943/image-155.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091924&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure></p>
<h3 class="wp-block-heading">Strong Labor Market Eases Slowdown Fears, Analysts Boost Rate-Cut Wagers</h3>
<p>Thursday&#8217;s economic data further boosted investor confidence. Weekly jobless claims came in well below expectations, suggesting a lower-than-expected trend of rising unemployment. </p>
<p>Continuing jobless claims also dropped more than expected, hinting at a potential absorption of long-term unemployed individuals into the job market. </p>
<p>This data alleviated concerns about rising unemployment and provided a more optimistic outlook for the economy.</p>
<p>Wall Street analysts quickly adjusted their expectations following the Federal Reserve&#8217;s rate cut. There is now growing anticipation of additional rate cuts, diverging from the cautious tone expressed in the Fed&#8217;s September &#8220;dot plot&#8221; and Chair <strong>Jerome Powell</strong>&#8216;s remarks during the press conference.</p>
<p>Notably, Goldman Sachs economist <strong>Jan Hatzius</strong> revised his forecast from expecting a 25-basis-point cut at every other meeting to predicting a rate cut at every meeting. He even left the door open for a back-to-back 50-basis-point reduction in November.</p>
<h3 class="wp-block-heading">Thursday&#8217;s 5 Top-Performing S&amp;P 500 Stocks</h3>
<p>Among the S&amp;P 500, the top five performers as of 10 a.m. ET were:</p>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Name</strong></td>
<td><strong>1-day Return</strong></td>
</tr>
<tr>
<td><strong>Darden Restaurants, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NASDAQ">DRI</a>) </td>
<td>7.46</td>
</tr>
<tr>
<td><strong>Airbnb, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>)</td>
<td>5.27</td>
</tr>
<tr>
<td><strong>Cadence Design Systems, Inc</strong>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>)</td>
<td>4.40</td>
</tr>
<tr>
<td><strong>Lam Research Corporation </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCRX#NASDAQ">LCRX</a>)</td>
<td>4.34</td>
</tr>
<tr>
<td><strong>NVIDIA Corporation</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>4.33</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<h3 class="wp-block-heading">Thursday&#8217;s 5 Top-Performing Dow Jones Industrial Average Stocks</h3>
<p>Among the Dow Jone, the top five performers were:</p>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Name</strong></td>
<td><strong>1-day Return</strong></td>
</tr>
<tr>
<td><strong>Apple Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>3.02</td>
</tr>
<tr>
<td><strong>Salesforce, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NASDAQ">CRM</a>)</td>
<td>3.01</td>
</tr>
<tr>
<td><strong>The Goldman Sachs Group, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)</td>
<td>2.80</td>
</tr>
<tr>
<td><strong>Caterpillar Inc</strong>. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>)</td>
<td>2.71</td>
</tr>
<tr>
<td><strong>American Express Company</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>)</td>
<td>2.67</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<p><strong>Read Next:</strong></p>
<ul>
<li><strong><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40938732/wall-street-ramps-up-interest-rate-cut-bets-after-fed-meeting-the-hard-landing-crow">Wall Street Ramps Up Interest Rate Cut Bets After Fed Meeting: &#8216;The Hard-Landing Crowd Should Disperse,&#8217; Economist Says</a></strong></li>
</ul>
<p><em>Photo via Shutterstock. </em></p>


Analyst Color

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S&P 500, Dow Jones Hit Record Highs: Magnificent 7 Add $400 Billion After Fed's Historic Interest Rate Cut

<p>Investors with significant funds have taken a bearish position in Cadence Design Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>), a development that retail traders should be aware of.</p>
<p>This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in CDNS usually indicates foreknowledge of upcoming events.</p>
<p>Today, Benzinga's options scanner identified 8 options transactions for Cadence Design Sys. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 12% being bullish and 87% bearish. Of all the options we discovered, 7 are puts, valued at $238,769, and there was a single call, worth $206,137.</p>
<h3>What's The Price Target?</h3>
<p>After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $265.0 and $295.0 for Cadence Design Sys, spanning the last three months.</p>
<h3>Volume &amp; Open Interest Development</h3>
<p>Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Cadence Design Sys's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Cadence Design Sys's whale trades within a strike price range from $265.0 to $295.0 in the last 30 days. </p>
<h3>Cadence Design Sys Option Volume And Open Interest Over Last 30 Days</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1726677230_0.png" alt="Options Call Chart" /></p>
<h3>Significant Options Trades Detected:</h3>
<p>
<table>
<thead>
<tr>
<th><strong>Symbol</strong></th>
<th><strong>PUT/CALL</strong></th>
<th><strong>Trade Type</strong></th>
<th><strong>Sentiment</strong></th>
<th><strong>Exp. Date</strong></th>
<th><strong>Ask</strong></th>
<th><strong>Bid</strong></th>
<th><strong>Price</strong></th>
<th><strong>Strike Price</strong></th>
<th><strong>Total Trade Price</strong></th>
<th style="text-align: right;"><strong>Open Interest</strong></th>
<th style="text-align: right;"><strong>Volume</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td>CDNS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$8.8</td>
<td>$8.6</td>
<td>$8.67</td>
<td>$295.00</td>
<td>$206.1K</td>
<td style="text-align: right;">142</td>
<td style="text-align: right;">240</td>
</tr>
<tr>
<td>CDNS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$17.6</td>
<td>$17.1</td>
<td>$17.6</td>
<td>$265.00</td>
<td>$47.6K</td>
<td style="text-align: right;">118</td>
<td style="text-align: right;">57</td>
</tr>
<tr>
<td>CDNS</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$18.7</td>
<td>$18.3</td>
<td>$18.6</td>
<td>$270.00</td>
<td>$37.2K</td>
<td style="text-align: right;">828</td>
<td style="text-align: right;">88</td>
</tr>
<tr>
<td>CDNS</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$17.7</td>
<td>$17.3</td>
<td>$17.6</td>
<td>$265.00</td>
<td>$35.2K</td>
<td style="text-align: right;">118</td>
<td style="text-align: right;">251</td>
</tr>
<tr>
<td>CDNS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$17.6</td>
<td>$17.2</td>
<td>$17.6</td>
<td>$265.00</td>
<td>$35.2K</td>
<td style="text-align: right;">118</td>
<td style="text-align: right;">139</td>
</tr>
</tbody>
</table>
</p>
<h3>About Cadence Design Sys</h3>
<p>Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.</p>
<h3>Present Market Standing of Cadence Design Sys</h3>
<ul>
<li>With a volume of 399,449, the price of CDNS is down -0.51% at $273.39. </li>
<li>RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.</li>
<li>Next earnings are expected to be released in 33 days.</li>
</ul>
<p>Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.</p>
<p>If you want to stay updated on the latest options trades for Cadence Design Sys, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.</p>


Options

Cadence Design Sys Options Trading: A Deep Dive into Market Sentiment

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Shares of companies within the broader technology sector are trading higher amid strength in the overall market, which may be gaining amid strength with NVIDIA and other chip stocks. At the ABC 2024 Presidential Debate, Vice President Harris said she wants to invest in American-based technology to win the race on AI and quantum computing.

<p><strong>Micron Technology, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>) saw its stock take a significant hit on Tuesday, dropping 8% in a single trading session. This sharp decline wasn&#39;t an isolated incident but part of a broader market sell-off triggered by disappointing economic data. The weaker-than-expected August 2024 manufacturing report from the Institute for Supply Management (&quot;ISM&quot;) sent shockwaves through the market, particularly affecting tech stocks.</p>
<p>The ISM&#39;s Manufacturing Purchasing Managers&#39; Index for August came in at 47.2, missing the expected 47.9 mark. While this was a slight improvement from July&#39;s 46.8, it still indicated a contraction in the manufacturing sector &mdash; a troubling sign for the U.S. economy. This marks the fifth consecutive month of contraction, and investors are rightly concerned about what this means for the broader economic outlook.</p>
<p>The weak manufacturing data triggered a sell-off across the stock market, with technology stocks bearing the brunt of the damage. Apart from Micron&#39;s 8% drop, other semiconductor giants weren&#39;t spared either. NVIDIA Corporation&nbsp;fell by 9.5%, and Advanced Micro Devices, Inc.&nbsp;saw a 7.8% decline. This kind of broad-based retreat highlights just how vulnerable the tech sector is to macroeconomic shifts.</p>
<p>Tech companies like Micron are highly sensitive to changes in global economic conditions. They rely heavily on complex supply chains and are affected by fluctuations in consumer and business spending. The recent downturn in Micron&#39;s stock might leave investors questioning their next move: should they hold, buy or sell?</p>
<h3>YTD Price Return Performance</h3>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/4b/76493.jpg?v=1181966645" style="height:305px; width:600px" /></p>
<p>Image Source: Zacks Investment Research</p>
<h2>The Silver Lining: Micron&#39;s Long-Term Growth Prospects</h2>
<p>Despite the immediate concerns surrounding the macroeconomic environment, it&#39;s important to take a step back and look at the bigger picture. Micron&#39;s long-term growth prospects remain solid. MU is a leader in memory and storage solutions, particularly in the DRAM and NAND markets. These components are critical for a wide array of applications, from smartphones and personal computers to data centers and the rapidly growing field of artificial intelligence.</p>
<p>AI is a game-changer for Micron. The increasing adoption of AI across various industries is expected to drive substantial demand for high-performance memory solutions. Micron is well-positioned to capitalize on this trend, especially with its strategic investments in next-generation DRAM and 3D NAND technologies. These advancements will not only bolster its competitive edge but also improve profitability over time.</p>
<p>Moreover, Micron is diversifying its market reach by expanding into high-growth sectors such as automotive, industrial IoT (the Internet of Things) and data center infrastructure. These markets present significant opportunities for the company to reduce its dependence on the cyclical consumer electronics market and generate more stable revenue streams.</p>
<h2>Micron&#39;s Robust Portfolio Aids in Winning Deals</h2>
<p>Micron&#39;s robust product portfolio is another critical factor that positions the company for long-term success. Its offerings, which include DRAM and NAND products for PCs, servers and smartphones, meet the diverse needs of the tech industry and help secure new deals.</p>
<p>For example, Micron&#39;s next-generation GDDR7 graphics memory is currently being tested by Advanced Micro Devices and <strong>Cadence Design Systems, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>). AMD plans to leverage this memory to enhance the performance and realism of its games, while Cadence uses it for testing its GDDR7 PHY IP.</p>
<p>Micron&#39;s high-bandwidth memory (HBM3E) is also set to play a pivotal role in NVIDIA&#39;s latest AI chip, the H200, which is poised to replace the current H100 chip. Micron has already sold out its HBM chips for 2024, with a significant portion of its 2025 supply also spoken for. These strategic partnerships and innovations underscore Micron&#39;s critical role in the tech ecosystem.</p>
<h2>Micron&#39;s Financial Recovery and Strong Outlook</h2>
<p>Micron has made a strong recovery from the financial difficulties it faced in late 2022 and early 2023. This turnaround is evident in the company&#39;s recent financial results, where it has consistently outperformed earnings expectations. Its non-GAAP earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 73.2%.</p>
<div class="chart_embed">
<h3>Micron Technology, Inc. Price, Consensus and EPS Surprise</h3>
<p><img alt="Micron Technology, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/f6/1725448202.png" style="height:305px; width:600px" title="" /></p>
<p>Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote</p>
<p>The outlook remains positive. The Zacks Consensus Estimate for Micron&#39;s top and bottom lines suggests continued growth momentum into fiscal 2025.</p>
</div>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/d8/76496.jpg?v=1575482709" style="height:305px; width:600px" /></p>
<p>Image Source: Zacks Investment Research</p>
<h2>Conclusion: Hold MU Stock for Now</h2>
<p>The macroeconomic headwinds reflected in the ISM data are concerning, but they don&#39;t overshadow Micron&#39;s strong fundamentals and growth potential. With its leadership in memory technology, strategic focus on high-growth areas like AI and promising financial outlook, Micron remains a stock worth holding through this period of volatility.</p>
<p>Micron currently carries a Zacks Rank #3 (Hold).</p>
<p><a href="https://www.zacks.com/stock/news/2331183/micron-stock-falls-8-on-macro-worries-how-should-investors-play?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2331183">To read this article on Zacks.com click here.</a></p>


Micron Stock Falls 8% on Macro Worries: How Should Investors Play?

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Shares of software companies are trading lower amid overall market weakness. Weakness may be due to August's ISM Manufacturing PMI data indicating an economic contraction.

<p><strong>Taiwan Semiconductor Manufacturing Co</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and global chip designers&nbsp;and suppliers are accelerating the development of next-generation silicon photonic solutions over the next three to five years to address the massive energy and faster data transmission speeds needed by AI computing.</p>
<p>Building an ecosystem for the technology mandated participation from design software suppliers <strong>Synopsys, Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>) and <strong>Cadence Design Systems Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) and chip developers <strong>Nvidia Corp</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and <strong>Advanced Micro Devices Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), AI server makers Foxconn and Quanta Computer, K.C. Hsu, vice president of integrated interconnect and packaging at Taiwan Semiconductor <a target="_blank" href="https://asia.nikkei.com/Business/Technology/TSMC-aims-to-ready-next-gen-silicon-photonics-for-AI-in-5-years#:~:text=TAIPEI%20%2D%2D%20Taiwan%20Semiconductor%20Manufacturing,next%20three%20to%20five%20years." rel="noreferrer noopener">told</a> Nikkei Asia at a technology forum. Taiwan Semiconductor stock is trading lower on Tuesday premarket.</p>
<p>Hsu told Nikkei Asia that the silicon photonics market will grow at an annual compound rate of 40%, between 2023-28 to $500 million thanks to the demand for high data rate modules for increased fiber-optic network capacity, especially pluggable and co-packaged optics (CPO).</p>
<p>Rachid Taibi, general manager of the business unit at chip materials provider Soitec, told Nikkei that big tech giants, including <strong>Meta Platforms Inc </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and <strong>Microsoft Corp</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), are among those backing CPO technology development.</p>
<p>Taiwan&#8217;s Economy Minister, Kuo Jyh-huei, <a target="_blank" href="https://www.benzinga.com/news/24/09/40673345/trump-misunderstands-taiwans-role-in-chip-industry-says-economy-minister-the-president-has-a-lot-on" rel="noreferrer noopener">recently countered former</a> President Donald Trump&#8217;s claims that Taiwan had taken away American semiconductor jobs. He flagged Taiwan Semiconductor&#8217;s significant investments in U.S. facilities, including $65 billion for new plants in Arizona.</p>
<p>Taiwan Semiconductor stock gained 82% in the last 12 months. Investors can gain exposure to the stock through <strong>iShares Semiconductor ETF</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and <strong>First Trust NASDAQ Technology Dividend Index Fund</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TDIV#NASDAQ">TDIV</a>).</p>
<p><strong>Price Action:&nbsp;</strong>TSM stock is down 1.77% at $168.66 premarket at the last check Tuesday.</p>
<p><strong>Also Read:</strong></p>
<ul>
<li><strong><a href="https://www.benzinga.com/news/24/08/40576490/taiwan-semiconductor-leads-foundry-market-samsung-and-intel-ramp-up-advanced-process-efforts-report" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor Leads Foundry Market, Samsung and Intel Ramp Up Advanced Process Efforts: Report</a></strong></li>
</ul>
<p><em>Photo by Jack Hong via Shutterstock</em></p>


What's Going On With Taiwan Semiconductor Stock On Tuesday?

<p>Cadence Design Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) has outperformed the market over the past 20 years by 8.28% on an annualized basis producing an average annual return of 16.72%. Currently, Cadence Design Sys has a market capitalization of $74.98 billion. </p>
<p><strong>Buying $100 In CDNS:</strong> If an investor had bought $100 of CDNS stock 20 years ago, it would be worth <strong>$2,192.95</strong> today based on a price of $273.82 for CDNS at the time of writing.</p>
<h3>Cadence Design Sys's Performance Over Last 20 Years</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1724445019_0.png" alt="comp_fig" /></p>
<p>Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


If You Invested $100 In This Stock 20 Years Ago, You Would Have $2,200 Today

<p>On August 19, 2024, Lip-Bu Tan informed the Board of <strong>Intel Corp</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) that he was resigning from the Board, effective <a target="_blank" href="https://www.intc.com/filings-reports/all-sec-filings" rel="noreferrer noopener">immediately</a>.</p>
<p>Tan attributed the departure as a personal decision based on a need to reprioritize various commitments.</p>
<p><strong>Cadence Design Systems, Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NASDAQ">CDNS</a>) former chief Tan&nbsp;became Intel&#8217;s board member in September 2022 and part of Intel&#8217;s mergers and acquisitions committee, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-22/intel-director-lip-bu-tan-is-leaving-board-of-ailing-chipmaker?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.</p>
<p>Intel reported a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40115276/intel-stock-falls-after-weak-q2-results-new-cost-reduction-plan-15-headcount-reduction" rel="noreferrer noopener">second-quarter topline decline</a> of 0.9% year-on-year to $12.83 billion, trailing the analyst consensus of $12.94 billion. The chip designer disclosed a $10 billion cost-reduction plan, including plans to slash headcount by over 15%.</p>
<p><strong>Goldman Sachs</strong> analyst Toshiya Hari&nbsp;considered the cost reduction plan <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40168042/intels-10b-cost-cut-seen-as-necessary-but-not-enough-for-competitive-edge-analyst" rel="noreferrer noopener">insufficient for a turnaround</a>.</p>
<p>Intel <a target="_blank" href="https://www.benzinga.com/news/24/08/40347392/apple-intel-and-amd-lead-charge-in-ai-capable-pc-market-surge-report" rel="noreferrer noopener">aims to ship&nbsp;chips</a> for over 100 million artificial intelligence personal computers by 2025, including over 40 million in 2024.&nbsp;</p>
<p>Intel stock plunged 39% in the last 12 months and trades at a forward price-to-earnings multiple of 17.39x.</p>
<p><strong>Price Action:</strong> INTC shares traded higher by 2.91% at $20.69 at the last check on Friday.</p>
<p><em>Photo via Shutterstock</em></p>


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Intel Board Member Lip-Bu Tan Resigns Amid Chipmaker's Struggle With Cost Cuts

<p><strong>Cadence Design Sys's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CDNS#NYSE">CDNS</a>) short percent of float has fallen 11.54% since its last report. The company recently reported that it has <strong>2.81 million shares sold short</strong>, which is 1.15% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 1.0 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Cadence Design Sys Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1724183110_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Cadence Design Sys has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.</p>
<h3>Comparing Cadence Design Sys's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cadence Design Sys's peer group average for short interest as a percentage of float is 2.70%, which means the company has <strong>less</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


(CDNS) - Analyzing Cadence Design Sys's Short Interest

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Shares of companies in the software industry are trading higher amid overall tech sector momentum and in possibly sympathy with Cisco Systems which reported strong Q4 financial results.

<p><strong>Cadence Design Systems</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) has recently been on Zacks.com&#39;s list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock&#39;s performance in the near future.</p>
<p>Shares of this maker of hardware and software products for validating chip designs have returned -14.5% over the past month versus the Zacks S&amp;P 500 composite&#39;s -4.5% change. The Zacks Computer - Software industry, to which Cadence belongs, has lost 11.6% over this period. Now the key question is: Where could the stock be headed in the near term?</p>
<p>While media releases or rumors about a substantial change in a company&#39;s business prospects usually make its stock &#39;trending&#39; and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.</p>
<h2>Earnings Estimate Revisions</h2>
<p>Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company&#39;s earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.</p>
<p>Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock&#39;s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.</p>
<p>Cadence is expected to post earnings of $1.46 per share for the current quarter, representing a year-over-year change of +15.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -13.6%.</p>
<p>For the current fiscal year, the consensus earnings estimate of $5.88 points to a change of +14.2% from the prior year. Over the last 30 days, this estimate has changed -0.7%.</p>
<p>For the next fiscal year, the consensus earnings estimate of $6.92 indicates a change of +17.6% from what Cadence is expected to report a year ago. Over the past month, the estimate has changed -0.9%.</p>
<p>Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock&#39;s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cadence is rated Zacks Rank #3 (Hold).</p>
<p>The chart below shows the evolution of the company&#39;s forward 12-month consensus EPS estimate:</p>
<h2>12 Month EPS</h2>
<h2>Projected Revenue Growth</h2>
<p>Even though a company&#39;s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It&#39;s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company&#39;s potential revenue growth is crucial.</p>
<p>In the case of Cadence, the consensus sales estimate of $1.18 billion for the current quarter points to a year-over-year change of +15.7%. The $4.62 billion and $5.22 billion estimates for the current and next fiscal years indicate changes of +13% and +13%, respectively.</p>
<h2>Last Reported Results and Surprise History</h2>
<p>Cadence reported revenues of $1.06 billion in the last reported quarter, representing a year-over-year change of +8.6%. EPS of $1.28 for the same period compares with $1.22 a year ago.</p>
<p>Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +1.17%. The EPS surprise was +4.07%.</p>
<p>The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.</p>
<h2>Valuation</h2>
<p>No investment decision can be efficient without considering a stock&#39;s valuation. Whether a stock&#39;s current price rightly reflects the intrinsic value of the underlying business and the company&#39;s growth prospects is an essential determinant of its future price performance.</p>
<p>Comparing the current value of a company&#39;s valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.</p>
<p>As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.</p>
<p>Cadence is graded F on this front, indicating that it is trading at a premium to its peers.</p>
<h2>Conclusion</h2>
<p>The facts discussed here and much other information on Zacks.com might help determine whether or not it&#39;s worthwhile paying attention to the market buzz about Cadence. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.</p>
<p><a href="https://www.zacks.com/stock/news/2319855/here-is-what-to-know-beyond-why-cadence-design-systems-inc-cdns-is-a-trending-stock?cid=CS-BENZ-FT-tale_of_the_tape|most_searched_stocks_v1-2319855">To read this article on Zacks.com click here.</a></p>


Here is What to Know Beyond Why Cadence Design Systems, Inc. is a Trending Stock

There are 27 pure-play stocks involved in the 6 segments of design, material supply, fabrication, testing, packaging, and distribution of semiconductors and their performances are presented in this article.

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