Latest news with #CadenceDesignSystems
Yahoo
12 hours ago
- Business
- Yahoo
Returns On Capital At Cadence Design Systems (NASDAQ:CDNS) Have Stalled
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. That's why when we briefly looked at Cadence Design Systems' (NASDAQ:CDNS) ROCE trend, we were pretty happy with what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Cadence Design Systems: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = US$1.5b ÷ (US$9.0b - US$1.3b) (Based on the trailing twelve months to March 2025). Thus, Cadence Design Systems has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Software industry average of 9.5% it's much better. Check out our latest analysis for Cadence Design Systems Above you can see how the current ROCE for Cadence Design Systems compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Cadence Design Systems . While the returns on capital are good, they haven't moved much. The company has employed 180% more capital in the last five years, and the returns on that capital have remained stable at 19%. Since 19% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. On a side note, Cadence Design Systems has done well to reduce current liabilities to 14% of total assets over the last five years. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously. In the end, Cadence Design Systems has proven its ability to adequately reinvest capital at good rates of return. On top of that, the stock has rewarded shareholders with a remarkable 215% return to those who've held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. Cadence Design Systems could be trading at an attractive price in other respects, so you might find our on our platform quite valuable. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time'
Apple Inc. (NASDAQ:AAPL) is reportedly looking to harness the power of generative artificial intelligence to accelerate the development of the custom chips that power its devices, according to senior executive Johny Srouji. What Happened: During a speech in Belgium last month, Apple's senior vice president of hardware technologies, Srouji, said the company is exploring generative AI to streamline chip design, calling it a major productivity opportunity, reported Reuters on Wednesday. "Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost," Srouji said, according to a recording reviewed by the publication. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. He made the remarks while accepting an award from Imec, a prominent semiconductor R&D organization. During his speech, Srouji highlighted that electronic design automation (EDA) firms like Cadence Design Systems (NASDAQ:CDNS) and Synopsys Inc. (NASDAQ:SNPS)—both racing to integrate AI—are critical to managing the complexity of Apple's chip development. Srouji also reflected on Apple's bold move in 2020 to replace Intel Corp (NASDAQ:INTC) chips in Mac computers with its own Apple Silicon. He said that it was a major takeaway from Apple's chip development journey was the importance of making bold decisions and moving forward without hesitation. "There was no backup plan, no split-the-lineup plan, so we went all in," he said. "Including a monumental software effort." Why It's Important: Last month, it was reported that Apple is developing new chips to power upcoming smart glasses, AI servers and future Macs. Apple aims to launch it by 2026–2027. Meanwhile, the M5 chip, built on the advanced 3nm N3P architecture, has reportedly entered mass production and is expected to enhance the MacBook Pro, iPad Pro and Vision Pro—especially with upcoming Apple Intelligence features. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo Courtesy: Prathmesh T on UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
South China Morning Post
3 days ago
- Business
- South China Morning Post
China's top player Empyrean eyes opportunities from US chip curbs on design software
Chinese chip-design software company Empyrean Technology has pledged to become one of the world's top electronic design automation (EDA) providers, as new US export restrictions bring both opportunities and challenges to the domestic industry. Founded in 2009 and based in Beijing, Empyrean aims to ascend to the top tier of EDA providers, capitalising on the struggles faced by its US competitors in selling to China because of new export controls on chip-design software, said Yu Han, a senior market director at Empyrean, at the World Semiconductor Conference in Nanjing, capital of eastern Jiangsu province, on Friday. The remarks came after Cadence Design Systems, Synopsys and Siemens EDA – the three leading EDA suppliers that collectively hold about 80 per cent of the global market share – confirmed they had received notices from the US Commerce Department's Bureau of Industry and Security regarding new export restrictions on software that could be used for developing advanced artificial intelligence chips. Those export controls have raised hopes among Chinese investors and analysts that local companies could seize new market opportunities. Besides Empyrean, other domestic EDA tool vendors, such as Primarius Technologies and Semitronix , have also garnered attention. Play Yu said China currently had over 100 domestic EDA companies, with Empyrean capturing half of that market share. He said Empyrean was the only Chinese company positioned among the second-tier global EDA providers, along with US firms Ansys and Keysight Technologies.
Yahoo
3 days ago
- Business
- Yahoo
Apple Explores AI to Speed Custom Chips
Apple (NASDAQ:AAPL) is exploring generative AI to accelerate its in-house chip design, potentially slashing development timelines and boosting productivity. In remarks last month in Belgium, Johny Srouji, Apple's senior vice president of hardware technologies, told attendees at an Imec awards ceremony that generative AI has a high potential in getting more design work in less time. Since debuting its first A4 chip in 2010, Apple has relied on cutting-edge EDA tools from Cadence Design Systems (NASDAQ:CDNS) and Synopsys (NASDAQ:SNPS). Srouji noted those partners are already integrating AI into their software suites to handle growing design complexity. Apple's chip roadmap has included monumental betsmost notably the 2020 shift from Intel (NASDAQ:INTC) to Apple Silicon across Mac desktops and laptops. Srouji said that all-in strategy, with no backup plan, underpinned the company's ability to optimize performance and power efficiency across devices like the M1 and M2 processors and the Vision Pro headset. He argued that AI-enhanced tools could represent a similarly transformative leap by automating repetitive tasks and enabling more iterative experimentation. Investors should watch how quickly EDA providers roll out AI modules and whether Apple pilots internal machine-learning models for layout, verification or synthesis. Faster cycle times could give Apple an edge over rivals, driving cost savings and potentially smoothing supply-chain bottlenecks. Why It Matters: AI-powered design could shorten chip development from years to months, helping Apple stay ahead in silicon innovation and maintain tight hardware-software integration. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
4 days ago
- Business
- Reuters
Apple eyes using AI to design its chips, technology executive says
SAN FRANCISCO, June 18 (Reuters) - Apple (AAPL.O), opens new tab is interested in tapping generative artificial intelligence to help speed up the design of the custom chips at the heart of its devices, its top hardware technology executive said in private remarks last month. Johny Srouji, Apple's senior vice president of hardware technologies, made the remarks in a speech in Belgium, where he was receiving an award from Imec, an independent semiconductor research and development group that works closely with most of the world's biggest chipmakers. In the speech, a recording of which was reviewed by Reuters, Srouji outlined Apple's development of custom chips from the first A4 chip in an iPhone in 2010 to the most recent chips that power Mac desktop computers and the Vision Pro headset. He said one of the key lessons Apple learned was that it needed to use the most cutting-edge tools available to design its chips, including the latest chip design software from electronic design automation (EDA) firms. The two biggest players in that industry - Cadence Design Systems (CDNS.O), opens new tab and Synopsys (SNPS.O), opens new tab - have been racing to add artificial intelligence to their offerings. "EDA companies are super critical in supporting our chip design complexities," Srouji said in his remarks. "Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost." Srouji said another key lesson Apple learned in designing its own chips was to make big bets and not look back. When Apple transitioned its Mac computers - its oldest active product line - from Intel's chips to its own chips in 2020, it made no contingency plans in case the switch did not work. "Moving the Mac to Apple Silicon was a huge bet for us. There was no backup plan, no split-the lineup plan, so we went all in, including a monumental software effort," Srouji said.
