Cadence unveils new AI co-processor for efficiency gains

SAN JOSE, Calif. - Cadence (NASDAQ: CDNS), a technology giant currently valued at $84.1 billion and trading near its 52-week high of $328.99, has launched the Tensilica NeuroEdge 130 AI Co-Processor (AICP), aimed at enhancing neural processing unit (NPU) performance across various system-on-chip (SoC) applications. The new processor claims over 30% area savings and a reduction of more than 20% in dynamic power and energy, maintaining comparable performance to its predecessors.According to InvestingPro data, Cadence maintains impressive gross profit margins of 85.86%, reflecting its strong market position in the semiconductor design software industry.

The NeuroEdge 130 AICP is designed to support advanced automotive, consumer, industrial, and mobile SoCs, working alongside NPUs to manage complex AI tasks. Its architecture is based on the successful Tensilica Vision DSP family, and it is compatible with existing software, AI compilers, and libraries, which Cadence says will enable faster market deployment. This innovation comes as the company demonstrates strong financial performance, with revenue growth of 19.55% and an overall financial health score rated as "GREAT" by InvestingPro analysts.

Karl Freund, founder and principal analyst of Cambrian AI Research, notes the increasing importance of NPUs in computationally intensive AI/ML workloads and the need for specialized processors to handle non-MAC layers more efficiently. The NeuroEdge 130 AICP addresses this gap with its high performance and low power consumption.

Cadence’s senior vice president and general manager of the Silicon Solutions Group, Boyd Phelps, emphasizes the processor’s role in addressing demanding AI applications and its potential for future-proofing SoC designs. The NeuroEdge 130 AICP also offers programmability and flexibility, allowing it to adapt to future AI workloads.

The processor is supported by the Cadence NeuroWeave Software Development Kit, simplifying the deployment of AI models. It also includes a standalone AI library for direct programming of AI layers.

The Tensilica NeuroEdge 130 AICP is currently available and is ISO 26262-ready for automotive applications. Cadence, known for its AI and digital twins technology, continues to innovate in the field of computational software for engineering design from silicon to systems. The company was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies in 2024.

This announcement is based on a press release statement from Cadence Design Systems, Inc.

In other recent news, Cadence Design Systems reported a strong first quarter for 2025, with earnings per share (EPS) of $1.57, surpassing the forecast of $1.49. Revenue for the quarter was approximately $1.24 billion, reflecting a 23% increase year-over-year. This growth was supported by strong demand in AI and autonomous systems, as well as robust intellectual property (IP) sales. The company has raised its full-year 2025 revenue guidance to a range of $5.15-$5.23 billion. In a strategic move, Cadence announced a definitive agreement to acquire Arm’s Artisan foundation IP business, aiming to expand its design IP portfolio. Analyst firms have responded to these developments, with Rosenblatt Securities raising its price target for Cadence to $300, maintaining a Neutral rating, and Mizuho Securities increasing its target to $325 while keeping an Outperform rating. Cadence also unveiled its new Millennium M2000 Supercomputer, integrated with NVIDIA technology, designed to enhance simulation speeds and scale across various workloads.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.