Aug. 18 at 11:10 PM
Cadence Design Systems CEO Anirudh Devgan said the AI boom should ultimately benefit the chip-design software company, despite its stock being left behind by the broader semiconductor rally. He argued that AI is a “turbocharger” for Cadence’s existing electronic design automation (EDA) tools rather than a replacement, because advanced chip development still depends on complex physics, mathematics and engineering expertise.
Cadence shares are down about 11% over the past year as investors have broadly sold software stocks over concerns that generative AI could disrupt traditional software businesses. Devgan countered that increasingly sophisticated semiconductors — including chips with hundreds of billions of transistors and 3-nanometer designs — make Cadence’s tools more important, not less. The company works with major chipmakers and technology firms, including Nvidia and Intel, as demand grows for custom AI accelerators and other specialized silicon.
$CDNS