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Cadence Design Systems
CDNS · NASDAQSemiconductors
The economic chain
Follow the chain left → right, from inputs to end demand. Tap any company to trace its links.
Raw inputs
Equipment
Foundry
Chip design
Software
AI demand
Foundrybuilds the chipChip designblueprints + softwareSystemsinto AI serversAI demandwho paysTSMTSMCARMArmCDNSCadence Design SystemsEDACore EDA toolsIPDesign IPSNPSSynopsysSDASystem Design & AnalysisNVNVIDIAAAPLAppleQCOMQualcommSSSamsung···Chip designersSYSSystem & auto companies
Company details
Market cap
$107B
P/E ratio
~90×
Div yield
0%
Revenue (2026E)
~$6.2B
Rev. growth
+17%
Backlog
~$8B
Q1'26 revenue
$1.47B
EDA market share
#2 (~30%)
In plain English
Cadence makes the software every chip is designed in. Before any GPU or phone processor reaches TSMC's factory, engineers at NVIDIA, Apple, Qualcomm and the rest lay it out, simulate it and verify it inside Cadence's tools — and increasingly license ready-made circuit blocks (IP) from Cadence too. With Synopsys it forms a duopoly over the invisible blueprints behind modern silicon, and it is pushing those same simulation tools out into cars, planes and 'physical AI'.
In simple terms
Where Cadence sits
Cadence lives at the 'design' stage: nothing it makes is physical. Its software is the workbench where engineers draw, simulate and verify a chip before TSMC ever prints it — making it a toll-booth on almost every advanced chip in the world.
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Risk read
Moderate
SteadierMore speculative
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