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SAN JOSE, Calif. - Cadence Design Systems, Inc. (NASDAQ:CDNS), a $96 billion market cap technology leader with impressive gross profit margins of 85.6%, announced on Wednesday a new Dynamic Power Analysis (DPA) App for its Palladium Z3 Enterprise Emulation Platform, developed in collaboration with NVIDIA. According to InvestingPro data, 13 analysts have recently revised their earnings expectations upward for the company, reflecting growing confidence in its innovation pipeline.
The new application enables hardware-accelerated dynamic power analysis of billion-gate AI designs across billions of cycles within hours, with up to 97 percent accuracy, according to a company press release.
The technology addresses a significant challenge in semiconductor design, where conventional power analysis tools have struggled to scale beyond a few hundred thousand cycles without requiring extensive time. The collaboration has produced a solution that can process billions of cycles in as few as two to three hours.
"This project redefined boundaries, processing billions of cycles in as few as two to three hours. This empowers customers to confidently meet aggressive performance and power targets and accelerate their time to silicon," said Dhiraj Goswami, corporate vice president and general manager at Cadence.
Narendra Konda, vice president of Hardware Engineering at NVIDIA, noted that the technology advancement comes at a critical time for AI infrastructure development, stating that "engineers need sophisticated tools to design more energy-efficient solutions."
The Palladium DPA App allows designers to estimate power consumption under real-world workloads before tapeout, when designs can still be optimized. This capability is particularly valuable for AI, machine learning, and GPU-accelerated applications, where energy efficiency is crucial.
The tool is integrated into Cadence’s analysis and implementation solution, enabling power estimation, reduction, and signoff throughout the design process.
In other recent news, Cadence Design Systems has reported impressive second-quarter 2025 earnings, leading to multiple analyst firms raising their price targets for the company. Cadence’s second-quarter revenue reached $1.275 billion, surpassing consensus estimates of $1.250 billion and reflecting a 20% increase year-over-year. The company’s adjusted earnings per share were $1.65, exceeding the consensus estimate of $1.56 and marking a 29% increase from the previous year. Berenberg, Stifel, and KeyBanc have all raised their price targets for Cadence Design, citing strong performance and growth potential. Berenberg increased its target to $400, while Stifel and KeyBanc set theirs at $395 and $405, respectively. Loop Capital also raised its price target to $390, despite acknowledging a revenue headwind from a U.S. export ban targeting China. Needham joined in by increasing its price target to $390, highlighting Cadence’s strong earnings report and favorable guidance for the upcoming quarters. These developments underscore the confidence analysts have in Cadence Design’s continued growth and performance.
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