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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Anushka MukherjiMon, Sep 1, 2025, 5:00 PM 4 min readAs the artificial Intelligence (AI) boom continues to reshape the tech landscape, most investors tend to focus on headline chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD). But another player that has been quietly powering the semiconductor revolution is Cadence Design Systems (CDNS). While it doesn’t make chips itself, Cadence provides the software tools that chipmakers rely heavily on to design and verify their next-generation processors. And in a world where chip innovation is happening at lightning speed, such a behind-the-scenes role has become more crucial than ever. Lately, Cadence has been stepping into the spotlight. After delivering a strong earnings report on July 28, the stock surged to a new 52-week high of $376.45 just a few days later. With demand for its tools rising alongside the explosion of AI-focused chip development, Cadence is proving to be one of the lesser-known, but increasingly vital, players in the semiconductor ecosystem.Trump Claims ‘$8 Trillion in Tariff Revenue’ Amid ‘Hundreds of Thousands of New Jobs’ in Confusing Labor Day Post‘You Sleep Like You're Rich. I'm Up Like I'm Broke’: Billionaire Grant Cardone Says Most People Are Too Complacent To Become RichThis Quantum Computing Stock Is Poised to Dominate. Why Analysts Think You Should Buy It Here.Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!California-based Cadence Design Systems is at the forefront of innovation, combining AI and digital twin technology to transform the design of chips and systems. Thanks to its Intelligent System Design strategy, Cadence provides essential tools that help top semiconductor and systems companies create everything from next-gen chips to complex electromechanical systems.Its technology plays a key role across various industries, including mobile, automotive, aerospace, industrial, life sciences, and even robotics. Valued at roughly $96.5 billion by market capitalization, shares of this semiconductor software designer have gained an impressive 32.6% over the past year, outperforming the broader S&P 500 Index’s ($SPX) 15.5% return during the same stretch. This year, the stock is up 16%, while the broader index has gained 9.8% year-to-date (YTD).Even with its impressive price performance, Cadence’s valuation could give some investors pause. The stock trades at a lofty 63 times forward earnings, more than double the sector median of 24x.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,431.50 +6.00 (+0.09%)Dow Futures45,232.00 -119.00 (-0.26%)Nasdaq Futures23,322.50 +47.50 (+0.20%)Russell 2000 Futures2,344.30 -12.70 (-0.54%)VIX17.17 +1.05 (+6.51%)Gold3,601.80 +9.60 (+0.27%)PortfolioSign in to access your portfolioSign inTop gainersCYTK Cytokinetics, Incorporated 49.62 +14.29 (+40.45%)IONS Ionis Pharmaceuticals, Inc. 57.49 +14.85 (+34.84%)UTHR United Therapeutics Corporation 404.81 +100.05 (+32.83%)ARWR Arrowhead Pharmaceuticals, Inc. 25.68 +3.65 (+16.57%)OPEN Opendoor Technologies Inc. 5.09 +0.64 (+14.38%)Top losersSOC Sable Offshore Corp. 23.08 -3.90 (-14.46%)LCID Lucid Group, Inc. 17.66 -2.14 (-10.81%)NVMI Nova Ltd. 237.16 -26.18 (-9.94%)CRWV CoreWeave, Inc. 93.34 -9.70 (-9.41%)KYIV Kyivstar Group Ltd. 11.07 -1.12 (-9.19%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)OPEN Opendoor Technologies Inc. 5.09 +0.64 (+14.38%)NVDA NVIDIA Corporation 170.78 -3.33 (-1.91%)NIO NIO Inc. 6.58 +0.20 (+3.13%)SNAP Snap Inc. 7.33 +0.19 (+2.66%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersGOOG Alphabet Inc. 211.99 -1.54 (-0.72%)GOOGL Alphabet Inc. 211.35 -1.56 (-0.73%)AAPL Apple Inc. 229.72 -2.42 (-1.04%)ZS Zscaler, Inc. 274.57 -2.48 (-0.90%)YM=F Mini Dow Jones Indus.-$5 Sep 25 45,232.00 -119.00 (-0.26%)Top economic events