Chip Stock Investor on $CDNS (Oct 26, 2026)
Cadence, a leading EDA company alongside Synopsys, is unlikely to be easily replaced by AI, since it does more than design, deploys AI in its platforms, sells a computing platform and has an important IP business. It has continued to be a fairly decent compounder.
Jump to any passage
And then EDA companies, uh, Cadence and Synopsis are two of the biggest that you can think of in that that space.
key igopoly uh synopsis and cadence probably the biggest second biggest bummer of of the lot.
It's not going to be that easy to just replace what Synopsis and and Cadence uh what they do with AI because there's a lot that they do beyond just design um and the design part of their platforms. They're also deploying AI into it.
like cadence has like an entire computing platform uh that they sell their customers synopsis has has has something similar as a part of the business there's the whole IP part of the business as well that is a very important part of selling the whole package um for their customers it's not going to be so easy to just displace them.
Cadence is actually continued to be a fairly decent little compounder.