Cadence Design Systems, IncNasdaq: CDNS
Information Technology · Application Software
$389.87
+0.52%
Vol: 1.3M
Research Digest
Thursday, June 18, 2026
Cadence stock up ~14.7% in a month on an expanded Intel Foundry 14A partnership and AI design tie-ups, though valuation looks stretched.
Cadence Design Systems has gained about 14.7% over the past month, trading near $388, driven by an expanded multi-year collaboration with Intel Foundry announced in early June 2026 to co-optimize Intel's upcoming 14A process node. Cadence also integrated Google's Gemini models with its ChipStack platform on Google Cloud and launched an autonomous virtual engineer for semiconductor development using NVIDIA technology. Q1 revenue grew 19% year over year to $1.47 billion with a record $8 billion backlog and double-digit growth across all segments; next-quarter EPS is seen at $2.05, up 24.2%. Analysts are bullish, rating it Buy with a $470 target, and BofA and KeyBanc lifted targets to $400 and $425. The bear case is valuation: one widely followed model pegs fair value at ~$345, below the last close near $388, framing the stock as priced ahead of fundamentals.
Previous Market Intelligence
13 daysJun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21Cadence Design Systems shares rose 3.8% on May 20 amid sustained AI-design demand and strong GF score signaling.Positive▶
CDNS climbed about 3.8% on May 20 to roughly $350.89, supported by continued investor enthusiasm for the company's AI-driven design backlog and expanding partnerships with NVIDIA, TSMC, Google and Aeva (which licensed Cadence's Tensilica Vision DSP IP for 4D LiDAR earlier in May). The move builds on a strong Q1 print (revenue +18.7% YoY to ~$1.47B) and raised FY26 EPS guidance to $7.85-$7.95. Mizuho reiterated a Buy on May 12, with multiple firms holding $400 price targets. Risks: premium valuation and insider selling activity (an SVP sold 1,071 shares under a 10b5-1 plan). Sentiment is positive on AI-design tailwinds.
May 20Bessemer Group sold 22,673 CDNS shares on May 15 as Cadence rides AI chip design demand and bullish analyst sentiment following strong Q1 results.Positive▶
Bessemer Group sold 22,673 shares of Cadence Design Systems on May 15, 2026. The stock continues to benefit from sustained AI chip design demand after Q1 2026 revenue grew 19% to $1.47B (beating $1.45B consensus) and diluted EPS jumped 23% to $1.23. Management raised full-year revenue guidance and unveiled new agentic AI tools at CadenceLive 2026 that prompted Needham to raise its price target to $400 from $390. Cadence also expanded its TSMC collaboration and signed Aeva to license its Tensilica Vision DSP IP for 4D LiDAR. Wall Street remains overwhelmingly bullish with 18 of 23 analysts rating Strong Buy. Some valuation concerns linger relative to peers like Adobe.
May 19No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 18Cadence Design stock at $347 on May 16 after one-month gain of ~18%; Bessemer Group sold 22,673 shares on May 15 amid post-earnings momentum.Positive▶
CDNS traded at $347.24 on May 16, down 2.48% week-over-week but up 17.71% over the past month, supported by strong Q1 2026 results (revenue $1.47B, +18.7% YoY; EPS $1.96 vs $1.91 est) and raised FY2026 guidance (revenue $6.125B-$6.225B implying ~17% growth, EPS $4.39-$4.49 GAAP). CEO Anirudh Devgan highlighted 'accelerating AI demand and record backlog' and positioned CDNS as leader in agentic AI EDA with its AgentStack platform. May 11 also brought an Aeva licensing deal for Tensilica Vision DSP IP for 4D LiDAR signal processing in industrial/automotive applications. Institutional moves: Bessemer Group sold 22,673 shares on May 15. KeyBanc raised PT to $425 (Overweight) in late April. Bear case: insider/institutional selling, premium valuation, and growing competition from Synopsys (post-Ansys) in the EDA space; near-term sector rotation pressure may continue.
May 15Cadence partnered with Google to optimize its ChipStack AI Super Agent on Gemini, and announced a 4D LiDAR licensing deal with Aeva.Positive▶
Cadence Design Systems announced a collaboration with Google to optimize its ChipStack AI Super Agent with Gemini on Google Cloud, projecting up to 10X productivity improvements. The company also disclosed a licensing deal with Aeva for 4D LiDAR technology, supporting AI and robotics positioning. Cadence is pioneering its agentic AI full-flow platform, AgentStack, integrated with ChipStack, ViraStack, and InnoStack Super Agents. Q1 2026 results showed revenue of ~$1.47B and net income ~$336M, with FY26 revenue guidance raised to 17% growth. The recent Hexagon D&E acquisition closed, adding structural/multibody dynamics. The stock traded near $362.70 on May 10.
May 14Cadence Design Systems extended winning streak to 11% over 7 days as AI chip design demand drives raised 2026 guidancePositive▶
Cadence Design Systems hit a 7-day winning streak in mid-May with cumulative gains of 11%, supported by strong Q1 2026 results reported earlier in May: revenue of ~$1.47B, net income of ~$336M, and diluted EPS up 23% to $1.23. The company raised full-year 2026 EPS guidance to $7.85-$7.95 and revenue growth outlook to 17% YoY, citing sustained AI chip design demand. Recent product launches include AgentStack (orchestration framework for AI Super Agents from chips to 3D-IC and systems) and the ViraStack AI Super Agent for analog/custom design. At the May 7 annual meeting, shareholders approved adding 5M shares to the Omnibus Equity Incentive Plan. Erste Group Bank raised FY26 EPS estimates on May 5. Bear case: insider sales totaling over $5M and a 46% position reduction by Manning & Napier Advisors highlight valuation concerns.
May 13Cadence extends 7-day winning streak with 11% rally and ~$9.4B market cap gain on AI-driven EDA momentum.Positive▶
As of May 12, Cadence Design Systems hit a 7-day winning streak with cumulative gains of 11% and market cap up ~$9.4B to $99B, driven by accelerating AI chip design demand and a record backlog. The rally builds on strong Q1 2026 results (revenue +19% YoY to $1.47B, diluted EPS $1.23 +23%) and raised full-year EPS guidance of $7.85-$7.95. CEO Anirudh Devgan highlighted the launch of AgentStack orchestration framework for Cadence AI Super Agents and a Google partnership optimizing ChipStack with Gemini on Google Cloud for up to 10x productivity gains. Risk: very high valuation; mitigant is structural AI tailwind in EDA.
May 12Cadence Design extends Q1 momentum with Google Cloud Gemini partnership for ChipStack AI Super Agent, but insiders sell over $5M in shares.Mixed▶
Cadence Design Systems shares continue to gain after the company's strong Q1 2026 results (revenue of ~$1.47B, net income ~$336M) and raised full-year guidance to 17% revenue growth and EPS of $7.85-$7.95. The company announced a collaboration with Google to optimize its ChipStack AI Super Agent with Gemini on Google Cloud, with expectations of up to 10x productivity improvements. CFO John Wall sold 5,000 shares on May 5 at $348.71 ($1.74M total) under a 10b5-1 plan, and SVP Paul Scannell sold 10,500 shares on May 1 for $3.56M. Securian Asset Management lowered its CDNS holdings per a May 12 disclosure. Stock trades at $362.70 (May 10), with 77% of 22 analysts rating Buy and average target of $379.46. Risk: P/E expansion and insider selling could weigh on near-term sentiment despite the strong AI-driven EDA backdrop.
May 11Cadence CFO John Wall sold 5,000 shares May 5 at $346-$351 under 10b5-1 plan; institutional repositioning continues into May after strong Q1 beat and raised 2026 guidance.Mixed▶
Cadence Design Systems CFO John M. Wall sold 5,000 shares on May 5, 2026 in open-market trades under a Rule 10b5-1 plan at prices between $346.16 and $351.42. The sale comes after Cadence's Q1 2026 results showed revenue of $1.47B (+19% YoY) beating $1.45B consensus and diluted EPS of $1.23 (+23%), prompting raised full-year guidance citing strong AI chip design demand and an expanded TSMC collaboration. The stock trades near $362.70 with a 52-week range of $262.75-$376.45 and Moderate Buy consensus. Cadence also announced a partnership with Google to optimize ChipStack AI Super Agent on Gemini/Google Cloud. Risk is potential valuation compression given a high P/E and any AI capex slowdown.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| ORCLORACLE | $183.48 | -2.58% | +1.1% | 16.8x | 1.66 | $527.8B |
| PLTRPALANTIR | $130.48 | -2.08% | -3.4% | 62.8x | 1.51 | $313.2B |
| APPAPPLOVIN | $480.51 | -6.73% | +0.5% | 21.9x | 2.46 | $161.1B |
| CRMSALESFORCE | $154.47 | -4.48% | -13.6% | 10.0x | 1.15 | $127.0B |
| CDNSCADENCE | $389.87 | +0.52% | +15.2% | 41.5x | 1.15 | $107.5B |
| SNPSSYNOPSYS | $461.59 | +2.95% | -6.5% | 26.8x | 1.21 | $88.4B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.