#EDA

Cadence Design Systems’ stock rose over 6% after reporting Q4 earnings that beat expectations. The electronic design automation (EDA) software provider saw revenue and adjusted earnings per share increase by 6% year-over-year. CEO Anirudh Devgan highlighted that 45% of revenue now comes from “system companies” like hyperscale cloud providers and smartphone/automotive manufacturers. This trend is driven by system companies optimizing hardware and software through custom chip design, a boom amplified by AI investments. Cadence anticipates continued growth, projecting $5.9-6 billion in revenue for the upcoming fiscal year.

Siemens has lifted export restrictions on its chip design software to mainland China, resuming full services after recent US government directives. This follows earlier notifications for EDA software providers to halt services. The move impacts the global EDA market, dominated by US firms, while China continues to develop its domestic solutions.