Cadence Design Systems

AI And IoT Advances Will Stimulate Next-Generation Chip Design

AN

AnalystHighTarget

Not Invested

Community Contributor

Published

13 Apr 25

Updated

06 Jan 26

Views

75

06 Jan

US$373.59

AnalystHighTarget's Fair Value

US$418.00

10.6% undervalued

1Y

18.4%

7D

7.6%

Loading

1Y

18.4%

7D

7.6%

You can edit this narrative until Jan 7 2:10 AM. Then, changes will post as Updates.

Author's Valuation

US$41810.6% undervalued

AnalystHighTarget Fair Value

Shared on 06 Jan 26

Fair value Increased 1.95%

CDNS: AI And High Performance Compute Demand Will Drive Future Upside

Analysts have raised their fair value estimate for Cadence Design Systems by $8 to $418, citing stronger recent Q3 results, firm forward growth guidance, and continued demand for the company's tools in artificial intelligence and high performance computing as the main reasons for the higher target. Analyst Commentary Analysts reacting to the recent Q3 report are highlighting what they see as solid execution and a supportive demand backdrop for Cadence Design Systems, especially in artificial intelligence and high performance computing workloads.

13 views

Shared on 23 Apr 25

Fair value Increased 17%

AnalystHighTarget made no meaningful changes to valuation assumptions.

2 views

Shared on 16 Apr 25

Fair value Decreased 0.81%

AnalystHighTarget made no meaningful changes to valuation assumptions.

0 views

Valuator

Company Info

Notes

AnalystHighTarget Fair Value

US$418

10.6% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

%

Decrease

Increase

Forecast revenue growth rate

11.17%

Historical revenue growth rate

13.71%

Software revenue growth rate

1.55%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

8.55%

Calculation

US$2.09b

Earnings '29

x

67.89x

PE Ratio '29

=

US$142.03b

Market Cap '29

US$142.03b

Market Cap '29

/

266.56m

No. shares '29

=

US$532.83

Share Price '29

US$532.83 Share Price '29

Discounted to 2026 @ 8.50% p.a.

=

US$417.12

Fair Value '26