Latest news with #Cadence
Yahoo
a day ago
- Business
- Yahoo
Cadence Design Systems (NasdaqGS:CDNS) Price Rises 14% Over Last Quarter
In May 2025, Cadence Design Systems launched the Millennium M2000 Supercomputer, delivering enhanced AI-accelerated simulations, alongside the Tensilica NeuroEdge 130 AI Co-Processor, optimizing neural processing. Despite these advancements, broader market trends like investor optimism over reduced tariffs between the U.S. and China may have provided a conducive environment for Cadence's stock price to rise 14% during the last quarter, aligning with the broader technology market movement. Meanwhile, Q1 2025 earnings demonstrated strong financial results, potentially reinforcing investor confidence amidst this upward trajectory. Buy, Hold or Sell Cadence Design Systems? View our complete analysis and fair value estimate and you decide. We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Cadence Design Systems' recent advancements in AI-accelerated simulations and neural processing, through the Millennium M2000 Supercomputer and Tensilica NeuroEdge 130 AI Co-Processor, can potentially strengthen its AI-driven design and verification tools portfolio. These innovations may boost revenue, meeting increasing demand for their AI-enabled offerings and supporting future earnings growth. Analysts expect revenue to rise, driven by strong IP business performance and expanding partnerships with major industry players, though geopolitical risks pose challenges. Over the past five years, Cadence experienced a total shareholder return of 211.71%, reflecting robust long-term growth. However, when comparing performance over the past year, Cadence underperformed the US Software industry, which returned 22.8%. This short-term underperformance contrasts with the company's five-year success and may influence investor perceptions. Despite the recent positive news, Cadence's current share price of US$305.78 is relatively close to the consensus analyst price target of US$319.32, representing a modest 4.2% upside. This suggests that while recent developments are promising, the market may already be pricing in these advancements. Investors are encouraged to weigh these factors alongside the analysts' forecasts and company valuation when considering their stance on Cadence's long-term potential. Click here and access our complete financial health analysis report to understand the dynamics of Cadence Design Systems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:CDNS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
a day ago
- Business
- Yahoo
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy originally appeared on TheStreet. Jensen Huang does not hide his frustration with U.S. chip policies. On Nvidia's latest earnings call, the CEO said the $50 billion market for AI chips in China is now 'effectively closed to U.S. industry.' That followed the U.S. government's April decision to require Nvidia's H20 processor, previously approved for China, to obtain an export license. 💵💰💰💵 As a result, the chipmaker booked a $4.5 billion charge for the fiscal first quarter, ended April 27, and added that it would have recorded an additional $2.5 billion in revenue without the restriction. 'The H20 export ban ended our Hopper data-center business in China,' Huang said. Nvidia wasn't the only company caught in the geopolitical crossfire. Hours before its earnings report, shares of chip-design firms Cadence () and Synopsys () slid after the Financial Times reported that the Trump administration had told them to stop selling software to customers in China. Nvidia is the top supplier of graphics-processing units, which are essential to power and train large AI models worldwide. China remains a key market for Nvidia, accounting for 13% of its sales in the past financial year. To adapt to the new rules, the company plans to launch a cheaper AI chip for the Chinese market, with production set to begin as early as September, according to Reuters. While Huang has long warned that export controls could hurt U.S. chipmakers, some experts argue that policymakers could hardly reverse course as broader national-security interests justify the tradeoffs. 'U.S. semiconductor policy isn't about one firm's earnings or market access — it's about protecting America's strategic edge in a high-stakes geopolitical contest,' Dewardric McNeal, managing director at Longview Global, wrote on CNBC.'Sometimes that means stepping back from markets that were never going to remain open anyway,' he added. Even so, Nvidia stock () performed well. The stock rose 3.25% to close at $139.19 on May 29 — a sharp contrast to the previous quarter, when it plunged 8.48% after the company reported earnings. Back in 2022, Huang cautioned that U.S. export controls could significantly harm Nvidia by restricting its ability to sell advanced chips to China. Since then, Nvidia's stock has increased roughly tenfold, and data-center revenue has grown at a remarkable pace, driven by demand across the U.S., Europe, and the Gulf States. In fiscal 2024, revenue for the data-center segment tripled (up 217%) year over year. That growth trend continued this quarter. On May 28, Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in revenue for its fiscal first quarter, beating Wall Street's expectations of 93 cents and $43.31 billion. The company forecasts $45 billion, plus or minus 2%, of revenue for the July quarter, while analysts had projected $45.9 billion. But it noted that the figure would have been roughly $8 billion higher without the China export curbs. Gross margin came in at 61%, but would have been 71.3% without the H20-related inventory charge. Despite rising tensions between Washington and Beijing, Nvidia's core business remains in expansion mode. 'Global demand for Nvidia's AI infrastructure is incredibly strong,' Huang said in a statement. "Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,' he added. Since April 4, when the stock hit a recent bottom price of $94.31, it has surged by more than 47%. Bank of America has lifted its price target for Nvidia stock to $180 from $160 and reiterated a buy rating, according to a research report following the earnings. The analysts saw three positive upsides from the company's earnings call: Blackwell racks in full production, China derisked, and gross margin likely to go back to mid-70s percent by investment firm increased its pro-forma EPS estimates by 6% for fiscal 2026, 2% for 2027, and 12% for 2028, bringing the projections to $4.21, $5.87, and $7.23, respectively. Nvidia remains the firm's Top Pick stock. Still, Bank of America highlights risks such as potential delays and supply-chain issues from a faster, annual product cycle, along with geopolitical threats to AI products. "NVDA's plan to launch cutting-edge products every year (October) is admirable but increases execution risks, similar to the [about two-quarter] delay we saw in Blackwell rack execution," the analysts wrote. More Nvidia: Analysts issue rare warning on Nvidia stock before key earnings Analysts double price target of new AI stock backed by Nvidia Nvidia CEO shares blunt message on China chip sales ban "Last, we can't ignore headline or real risks from use of (or restriction on) AI products as a bargaining tool in global trade deals," the analysts added. Year to date, Nvidia stock is up 3.65% while the S&P 500 Index is up 0.52%.Analyst resets Nvidia stock price target after CEO slams U.S. chip policy first appeared on TheStreet on May 30, 2025 This story was originally reported by TheStreet on May 30, 2025, where it first appeared. Sign in to access your portfolio
Time of India
a day ago
- Business
- Time of India
Synopsys halts China sales due to US export restrictions, internal memo shows
Semiconductor design software firm Synopsys has told staff in China to halt services and sales in the country and stop taking new orders to comply with new US export restrictions , according to an internal letter reviewed by Reuters. The US has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses already granted to certain suppliers, Reuters reported on Wednesday, citing people familiar with the matter. Products affected include design software and chemicals for semiconductors, they said. Synopsys on Thursday suspended its annual and quarterly forecasts after it received a letter from the Bureau of Industry and Security of the US Department of Commerce, informing it of new export restrictions related to China. The internal letter sent to staff in China on Friday said "based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025." To ensure compliance, Synopsys said it was blocking sales and fulfillment in China and halting new orders until it receives further clarification. The measures affect all customers in China, including employees of global customers working at sites in China and Chinese military users wherever they are located, the letter added. The steps Synopsys is taking in light of the new restrictions have not been previously reported. Synopsys did not immediately reply to a request for comment. Alongside Cadence and Siemens EDA, Synopsys is among the top three companies that dominate electronic design automation (EDA) software that chipmakers can use to design semiconductors used in everything from smartphones to computers and cars. Restricting Chinese firms' access to EDA tools would be a big blow to the industry as Chinese chip design customers heavily rely on top-of-the-line U.S. software. Synopsys, Cadence and Siemens's Mentor Graphics control more than 70% of China's EDA market, Chinese state news agency Xinhua reported in April. Chinese companies that have said they use Synopsys and Cadence software include design firm Brite Semiconductor, Zhuhai Jieli and semiconductor IP portfolio provider VeriSilicon.
Miami Herald
a day ago
- Business
- Miami Herald
Analyst resets Nvidia stock price target after CEO slams U.S. chip policy
Jensen Huang does not hide his frustration with U.S. chip policies. On Nvidia's latest earnings call, the CEO said the $50 billion market for AI chips in China is now "effectively closed to U.S. industry." That followed the U.S. government's April decision to require Nvidia's H20 processor, previously approved for China, to obtain an export license. Don't miss the move: Subscribe to TheStreet's free daily newsletter As a result, the chipmaker booked a $4.5 billion charge for the fiscal first quarter, ended April 27, and added that it would have recorded an additional $2.5 billion in revenue without the restriction. "The H20 export ban ended our Hopper data-center business in China," Huang said. Nvidia wasn't the only company caught in the geopolitical crossfire. Hours before its earnings report, shares of chip-design firms Cadence (CDNS) and Synopsys (SNPS) slid after the Financial Times reported that the Trump administration had told them to stop selling software to customers in China. Nvidia is the top supplier of graphics-processing units, which are essential to power and train large AI models worldwide. China remains a key market for Nvidia, accounting for 13% of its sales in the past financial year. To adapt to the new rules, the company plans to launch a cheaper AI chip for the Chinese market, with production set to begin as early as September, according to Reuters. While Huang has long warned that export controls could hurt U.S. chipmakers, some experts argue that policymakers could hardly reverse course as broader national-security interests justify the tradeoffs. "U.S. semiconductor policy isn't about one firm's earnings or market access - it's about protecting America's strategic edge in a high-stakes geopolitical contest," Dewardric McNeal, managing director at Longview Global, wrote on CNBC. Related: Analyst resets Nvidia-backed AI stock price target after 200% surge "Sometimes that means stepping back from markets that were never going to remain open anyway," he added. Even so, Nvidia stock (NVDA) performed well. The stock rose 3.25% to close at $139.19 on May 29 - a sharp contrast to the previous quarter, when it plunged 8.48% after the company reported earnings. Back in 2022, Huang cautioned that U.S. export controls could significantly harm Nvidia by restricting its ability to sell advanced chips to China. Since then, Nvidia's stock has increased roughly tenfold, and data-center revenue has grown at a remarkable pace, driven by demand across the U.S., Europe, and the Gulf States. In fiscal 2024, revenue for the data-center segment tripled (up 217%) year over year. That growth trend continued this quarter. On May 28, Nvidia reported adjusted earnings of 96 cents per share on $44.06 billion in revenue for its fiscal first quarter, beating Wall Street's expectations of 93 cents and $43.31 billion. The company forecasts $45 billion, plus or minus 2%, of revenue for the July quarter, while analysts had projected $45.9 billion. But it noted that the figure would have been roughly $8 billion higher without the China export curbs. Gross margin came in at 61%, but would have been 71.3% without the H20-related inventory charge. Despite rising tensions between Washington and Beijing, Nvidia's core business remains in expansion mode. "Global demand for Nvidia's AI infrastructure is incredibly strong," Huang said in a statement. "Countries around the world are recognizing AI as essential infrastructure - just like electricity and the internet - and Nvidia stands at the center of this profound transformation," he added. Since April 4, when the stock hit a recent bottom price of $94.31, it has surged by more than 47%. Bank of America has lifted its price target for Nvidia stock to $180 from $160 and reiterated a buy rating, according to a research report following the earnings. The analysts saw three positive upsides from the company's earnings call: Blackwell racks in full production, China derisked, and gross margin likely to go back to mid-70s percent by year-end. Related: Cathie Wood buys $46 million of surging top semiconductor stock The investment firm increased its pro-forma EPS estimates by 6% for fiscal 2026, 2% for 2027, and 12% for 2028, bringing the projections to $4.21, $5.87, and $7.23, respectively. Nvidia remains the firm's Top Pick stock. Still, Bank of America highlights risks such as potential delays and supply-chain issues from a faster, annual product cycle, along with geopolitical threats to AI products. "NVDA's plan to launch cutting-edge products every year (October) is admirable but increases execution risks, similar to the [about two-quarter] delay we saw in Blackwell rack execution," the analysts wrote. More Nvidia: Analysts issue rare warning on Nvidia stock before key earningsAnalysts double price target of new AI stock backed by NvidiaNvidia CEO shares blunt message on China chip sales ban "Last, we can't ignore headline or real risks from use of (or restriction on) AI products as a bargaining tool in global trade deals," the analysts added. Year to date, Nvidia stock is up 3.65% while the S&P 500 Index is up 0.52%. Related: Top analyst sends bold message on S&P 500 The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
TechCrunch
a day ago
- Business
- TechCrunch
US imposes new rules to curb semiconductor design software sales to China
It appears the Trump administration has imposed new export controls on chip design software as it seeks to further undermine China's ability to make and use advanced AI chips. Siemens EDA, Cadence Design Systems and Synopsys all confirmed that they have received notices from the U.S. Commerce Department about new export controls on electronic automation design (EDA) software to China. EDA tools are primarily used to aid with the design and validation of semiconductor manufacturing, testing, and for monitoring performance and quality. They are used by chip foundries, chipmakers, networking hardware companies, the automotive industry, and many more. Siemens EDA, a division of German tech conglomerate Siemens, told TechCrunch that it has received a notice from the Commerce Department's Bureau of Industry and Security (BIS) last week about new export controls on EDA software to China and Chinese military end users. 'Siemens has supported customers in China for more than 150 years and will continue to work with our customers globally to mitigate the impact of these new restrictions while operating in compliance with applicable national export control regimes,' the company said. U.S.-based Synopsys, which also makes EDA software, said on Thursday that it had also received a similar letter from the BIS. The company also suspended its forecast for the third quarter and full-year 2025. Cadence also received a notice from the BIS saying a license is now required for 'the export, re-export or in-country transfer of electronic design automation software' to customers in China. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW The news was first reported by The Financial Times. The new export rules come as the U.S. ramps up its efforts to hinder Chinese companies as the battle for AI supremacy heats up. But these export controls are increasingly hurting the U.S. chip industry, which has long enjoyed significant market share in China. Nvidia alone has incurred billions in losses due to restrictions on sales of its H20 and Hopper AI chips to Chinese customers. The company, along with rival AMD, is even said to be working on selling lower-powered versions of its AI chips to Chinese customers. The U.S. Commerce Department did not immediately return a request for comment outside regular business hours.
