Latest news with #CadenceDesignSystems
The Hill
12 hours ago
- Business
- The Hill
Senate Republican questions new Intel CEO's ties to China
Sen. Tom Cotton (R-Ark.) on Tuesday pressed the chair of Intel's board about its CEO's ties to China, voicing concerns about the integrity of the semiconductor firm and U.S. national security. In a letter to Intel board chair Frank Yeary, Cotton pointed to recent reporting on Lip-Bu Tan's investments in hundreds of Chinese tech firms, at least eight of which have ties to the Chinese military, according to Reuters. Tan was tapped to lead Intel in March, after former CEO Pat Gelsinger stepped down last December following a 'challenging year' for the company. Before joining Intel, Tan was CEO of Cadence Design Systems — another point of concern raised by Cotton. The software company produces electronic design automation (EDA) technology, which is used to design chips. It agreed to plead guilty and pay $140 million last month for violating export controls by selling the technology to a Chinese military university. 'Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,' Cotton wrote, noting Intel's nearly $8 billion grant under the CHIPS and Science Act. 'Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations,' he added. Cotton asked Yeary what measures Intel has taken to address concerns about Cadence's activities, which occurred during Tan's tenure, and whether it has required him to divest from China-linked semiconductor firms or other 'concerning entities.' The Arkansas Republican also questioned whether Tan has disclosed his China investments and ties to the U.S. government given Intel's involvement in a Pentagon program to build chips for defense and intelligence needs.
Yahoo
4 days ago
- Business
- Yahoo
Cadence Design Systems, Inc. (CDNS)'s Numbers Show NVIDIA Is In Great Shape In China, Says Jim Cramer
We recently published . Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the stocks Jim Cramer recently discussed. Cadence Design Systems, Inc. (NASDAQ:CDNS) is an American software company that provides products to enable chip designers to develop their products. It is one of the most crucial firms in the semiconductor supply chain due to few competitors worldwide. Cadence Design Systems, Inc. (NASDAQ:CDNS)'s shares have gained 24.7% year-to-date as the firm benefited in July from raising its full-year revenue outlook to $5.21 billion to $5.27 billion from an earlier $5.15 billion to $5.23 billion. For his part, Cramer discussed the firm's partnership with NVIDIA: 'By the way, Cadence, that is, when people look at Cadence, the number one partner is NVIDIA. Now NVIDIA also has the story out there, but not confirmed by me, that there's, the H20 orders from China are huge. There had been some talk that maybe they wouldn't be. Cadence is a fantastic company. And I think that that was the sign that NVIDIA is in great shape in China. NVIDIA's doing so well, what are you going to do? It just keeps, it's just relentless.' Iaroslav Neliubov/ Cramer also commented later in Mad Money on Cadence Design Systems, Inc. (NASDAQ:CDNS)'s earnings: 'Not even the incredible earnings news from Cadence Design Systems, also a fave of the show, and Celestica could help things. Cadence, a good partner of NVIDIA, blew away the numbers with a tremendous quarter. But who cares? I mean, we knew their business was great. Same with Celestica, which, along with Sanmina and FLEX LNG, belong in an elite camp of contract manufacturers devoted largely to tech. They have more than their fair share of orders. It's a great time to be in that line of work, as we know, when we had FLEX on recently, after their amazing quarter.' While we acknowledge the potential of CDNS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Jim Cramer Notes Cadence 'Blew Away the Numbers With a Tremendous Quarter'
Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the stocks Jim Cramer recently talked about. During the episode, Cramer mentioned the stock and called its quarter 'tremendous.' He commented: 'Not even the incredible earnings news from Cadence Design Systems, also a fave of the show, and Celestica could help things. Cadence, a good partner of NVIDIA, blew away the numbers with a tremendous quarter. But who cares? I mean, we knew their business was great. Same with Celestica, which, along with Sanmina and FLEX LNG, belong in an elite camp of contract manufacturers devoted largely to tech. They have more than their fair share of orders. It's a great time to be in that line of work, as we know, when we had FLEX on recently, after their amazing quarter.' Copyright: stokkete / 123RF Stock Photo Cadence Design Systems (NASDAQ:CDNS) provides software, hardware, and services for chip design, verification, and system analysis. The company's offerings include platforms for simulation, prototyping, physical implementation, and semiconductor IP. Rothschild & Co Wealth Management stated the following regarding Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q1 2025 investor letter: 'In the first quarter we made two new investments, building positions in semiconductor design software provider Cadence Design Systems, Inc. (NASDAQ:CDNS) and leading aerospace company General Electric Aerospace. No divestments were made, leaving the portfolio with 25 ownership stakes. While we acknowledge the potential of CDNS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
This Is the Best Reason to Invest in Intel Now. And It Might Be the Only One.
Key Points Following a CEO change, Intel posted another lackluster quarter with flat revenue and a loss. The company is scaling back operating costs and capital expenditures. The broader AI boom gives the company a shot at a recovery. 10 stocks we like better than Intel › Intel (NASDAQ: INTC) changed its messenger, but the message stayed the same. After pushing out CEO Pat Gelsinger and bringing in Lip-Bu Tan, the former CEO of Cadence Design Systems, to run the company, the legacy chipmaker reported another disappointing quarter last week in Tan's first full quarter as the CEO. The stock finished down 8.5% on the news. Revenue in the quarter was flat at $12.9 billion, though that was well ahead of the consensus at $11.9 billion. Revenue in the PC-focused Client Computing Group fell 3% to $7.9 billion, while Data Center and AI was also weak, up just 4% to $3.9 billion. Foundry, its other core business, reported revenue up 3% to $4.4 billion. Some segments have overlapping revenue, leading to $4.4 billion in intersegment eliminations. After it announced a goal of cutting 20% of its workforce in April, Intel said it had achieved a workforce reduction of about 15%, and is aiming to cut non-GAAP (generally accepted accounting principles) operating expenses to $17 billion for the year. Those cost cuts weren't enough to save the bottom line as gross margin tumbled again, falling from 38.7% to 29.7 % due to an $800 million non-cash impairment for accelerated depreciation related to tools with no reuse potential and $200 million in one-time costs. Those charges reduced gross margin by 800 basis points, meaning it would have fallen just 100 basis points without them. On the bottom line, Intel reported an adjusted loss per share of $0.10, down from $0.02 in the quarter a year ago, and below expectations of $0.01 per share. Without that impairment, the company would have reported an adjusted profit of $0.10 per share. Intel is scaling back its ambitions A theme of the report was right-sizing the business in order to meet demand, rather than investing ahead of demand. On the call, Tan summed up this strategy, saying, "I do not subscribe to the belief that, 'If you build it, they will come.' Under my leadership, we will build what customers need, when they need it, and earn their trust, through consistent execution." In line with that thinking and in addition to the layoffs and targeted reduction in operating expenses, Intel is also aiming to reduce its capital expenditures to $18 billion for the year. That includes abandoning projects in Germany and Poland, and consolidating assembly and test operations in Costa Rica into larger sites in Vietnam and Malaysia. It also said it would slow the pace of construction at a new foundry in Ohio to ensure spending on it matches demand. Due to a pull-forward effect from tariff fears, the company also expects the second half of the year to be below the seasonal level. In its third-quarter guidance, it called for revenue of $12.6 billion to $13.6 billion, a slight decline at the midpoint, and it sees break-even EPS. Intel's 18A process may be its most consequential project, and one that Intel bulls had hoped will drive profitability in the foundry unit, opening it up to third-party customers and potentially making it competitive with TSMC. Intel began the start of production wafers at its plant in Arizona in the quarter, a key milestone. Tan said 18A is the foundation of the next three generations of Intel client and server products and the company is committed to fully scaling the technology. Can Intel turn it around? While Tan deserves some time to execute a turnaround, for which cost-cutting is the first step, the struggles are only magnified when you compare Intel to its peers. Virtually every semiconductor stock is thriving in the current AI boom, which has been the biggest windfall in the sector arguably since the dot-com era. Not only is Intel unable to grow right now, it's unable to do so at a time when demand for all things AI is soaring. Peers like Nvidia, AMD, and Micron are all seeing strong growth, and even stocks of legacy tech companies like IBM and Oracle have soared lately on excitement for their AI-related products. While Intel is facing myriad challenges and has been unable to turn a profit, it may only take one success to rewrite the narrative in the stock. For now, though, that still seems elusive, and a downturn in the industry would set back its turnaround hopes even further. At this point, Intel needs to show evidence that a turnaround is underway before it's investable, but the frothiness in the chip sector and the broad market offers some upside if the company can take the first step toward recovery. Should you buy stock in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Jeremy Bowman has positions in Advanced Micro Devices, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Cadence Design Systems, Intel, International Business Machines, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. This Is the Best Reason to Invest in Intel Now. And It Might Be the Only One. was originally published by The Motley Fool
Yahoo
30-07-2025
- Business
- Yahoo
Cadence Design Systems Stock Pops as Firm Settles With US, Raises Outlook
Cadence Design Systems (CDNS) was one of the top-performing stocks in the S&P 500 Tuesday after the firm settled legal proceedings with the U.S. government and lifted its full-year outlook. Shares were up over 9% in recent trading, and have added over a fifth of their value this year. The San Jose, Calif.-based company reported second-quarter adjusted earnings per share of $1.65 on revenue that rose 20% year-over-year to $1.28 billion. Both figures exceeded consensus estimates of analysts surveyed by Visible Alpha. Cadence also said that its results included a one-time charge of $140.6 million to settle legal proceedings with the U.S. Department of Justice and the U.S. Department of Commerce relating to "operations and business dealings in China." Cadence now sees 2025 revenue in the range of $5.21 billion to $5.27 billion, up from the prior forecast of $5.15 billion to $5.23 billion, and adjusted EPS of $6.85 to $6.95, up from $6.73 to $6.83. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
