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CDNS vs CRWD
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. CrowdStrike Holdings (CRWD) Stock Comparison
Key Takeaways
- CDNS (Cadence Design Systems) has rallied sharply in recent weeks, lifted by renewed optimism around artificial intelligence (AI) chip demand and strong second-quarter results.
- CRWD (CrowdStrike Holdings) has delivered stronger trailing momentum, gaining more than 100% over the past year on accelerating annual recurring revenue (ARR).
- The two companies operate in different niches of the technology stack: Cadence provides chip-design software, while CrowdStrike sells cloud-native cybersecurity through its Falcon platform.
- Both trade at premium valuations, but CrowdStrike carries a notably higher multiple relative to earnings and sales.
- Cadence offers stronger current profitability and free-cash-flow margins, while CrowdStrike is growing its top line faster and expanding its platform footprint.
Introduction
Investors comparing CDNS and CRWD are effectively weighing two distinct ways to gain exposure to AI-driven technology spending. Cadence Design Systems supplies the electronic design automation (EDA) software used to build advanced semiconductors, positioning it upstream of the AI infrastructure boom. CrowdStrike Holdings provides cloud-native cybersecurity, a category benefiting from rising digital threats and growing security budgets. This stock comparison is relevant for traders and long-term investors seeking to understand how relative performance, business models, and market positioning differ between two high-growth technology names with very different risk profiles and valuation characteristics.
CDNS Overview and Recent Performance
Cadence Design Systems develops computational software, hardware, and silicon intellectual property used to design and verify integrated circuits and electronic systems. Its tools are essential for chipmakers racing to meet demand for AI processors, high-performance computing, and automotive electronics.
Recent market activity has favored the stock. CDNS advanced on an extended winning streak in recent weeks, adding roughly 19% over an eight-session stretch and pushing its market capitalization near the $90 billion range. The move followed stronger-than-expected results, in which revenue rose about 24% year over year and non-GAAP (non-Generally Accepted Accounting Principles) earnings per share (EPS) beat consensus estimates. Management also raised its full-year revenue and EPS outlook.
Sentiment has been reinforced by renewed optimism around AI semiconductor demand and by Wall Street analysts lifting price targets. Despite this, the stock has been volatile over a longer horizon, and its forward price-to-earnings (P/E) multiple remains well above the broader software and semiconductor peer medians, reflecting elevated expectations for continued growth.
CRWD Overview and Recent Performance
CrowdStrike Holdings operates the Falcon platform, a cloud-native security suite spanning endpoint protection, identity, cloud security, and security operations. The company has positioned itself as a leader in AI-native cybersecurity, using its data advantage to detect and respond to threats across enterprise IT infrastructure.
Recent market activity has been notably strong for CRWD. The stock has roughly doubled over the past year and posted a triple-digit year-to-date gain, outperforming many cybersecurity peers. This momentum is backed by fundamentals: in its most recent quarter, revenue grew about 26% year over year while the company added a record level of net new ARR, up about 51% from the prior-year period.
Growth is being driven by the Falcon Flex subscription model, which simplifies procurement and encourages customers to adopt additional modules, and by rising adoption of AI-focused security products. However, the shares trade at a very high multiple relative to both forward earnings and sales, leaving relatively little room for execution missteps.
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Head-to-Head Comparison
Although both are technology companies benefiting from AI tailwinds, CDNS and CRWD differ substantially in business model and market positioning.
- Business model: Cadence earns recurring revenue from software licenses tied to chip design and verification, while CrowdStrike operates a subscription security platform with expanding module adoption.
- Growth drivers: Cadence is levered to semiconductor design activity and the shift toward custom AI silicon. CrowdStrike is levered to rising cyber threats, security consolidation, and platform expansion.
- Recent momentum: CrowdStrike has shown stronger trailing performance over the past year, while Cadence has surged more recently on renewed AI-chip optimism.
- Valuation: Cadence carries an elevated but more moderate forward P/E, whereas CrowdStrike trades at a far higher multiple relative to both earnings and sales.
- Risk factors: Cadence faces exposure to export restrictions, cyclical semiconductor spending, and acquisition integration costs. CrowdStrike faces intense competition, high valuation sensitivity, and the challenge of sustaining hypergrowth at scale.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor CRWD for trend consistency and momentum, given its sustained uptrend, stronger relative performance, and accelerating ARR growth. However, the analysis would also weigh CDNS's comparatively stronger profitability, more moderate valuation, and recent positive catalysts. The probabilistic verdict leans toward CrowdStrike for traders prioritizing established momentum, while acknowledging that Cadence offers a more balanced risk-reward profile for investors focused on margins and valuation discipline. Neither view constitutes personalized investment advice.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CDNS is a Buy and CRWD is a Buy.
CDNS | CRWD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 46 | 43 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 84 Overvalued | 100 Overvalued | |
PROFIT vs RISK RATING 1..100 | 36 | 4 | |
SMR RATING 1..100 | 43 | 89 | |
PRICE GROWTH RATING 1..100 | 40 | 34 | |
P/E GROWTH RATING 1..100 | 77 | 7 | |
SEASONALITY SCORE 1..100 | 75 | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CDNS's Valuation (84) in the Electronic Production Equipment industry is in the same range as CRWD (100) in the null industry. This means that CDNS’s stock grew similarly to CRWD’s over the last 12 months.
CRWD's Profit vs Risk Rating (4) in the null industry is in the same range as CDNS (36) in the Electronic Production Equipment industry. This means that CRWD’s stock grew similarly to CDNS’s over the last 12 months.
CDNS's SMR Rating (43) in the Electronic Production Equipment industry is somewhat better than the same rating for CRWD (89) in the null industry. This means that CDNS’s stock grew somewhat faster than CRWD’s over the last 12 months.
CRWD's Price Growth Rating (34) in the null industry is in the same range as CDNS (40) in the Electronic Production Equipment industry. This means that CRWD’s stock grew similarly to CDNS’s over the last 12 months.
CRWD's P/E Growth Rating (7) in the null industry is significantly better than the same rating for CDNS (77) in the Electronic Production Equipment industry. This means that CRWD’s stock grew significantly faster than CDNS’s over the last 12 months.
| CDNS | CRWD | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 57% | 1 day ago 77% |
| Stochastic ODDS (%) | 1 day ago 66% | 1 day ago 72% |
| Momentum ODDS (%) | 1 day ago 70% | 1 day ago 82% |
| MACD ODDS (%) | 1 day ago 69% | 1 day ago 79% |
| TrendWeek ODDS (%) | 1 day ago 68% | 1 day ago 82% |
| TrendMonth ODDS (%) | 1 day ago 67% | 1 day ago 85% |
| Advances ODDS (%) | 2 days ago 68% | 2 days ago 82% |
| Declines ODDS (%) | 23 days ago 65% | 13 days ago 72% |
| BollingerBands ODDS (%) | 1 day ago 69% | N/A |
| Aroon ODDS (%) | 1 day ago 70% | 1 day ago 84% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CDNS’s FA Score shows that 0 FA rating(s) are green while CRWD’s FA Score has 2 green FA rating(s).
- CDNS’s FA Score: 0 green, 5 red.
- CRWD’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CDNS’s TA Score shows that 5 TA indicator(s) are bullish while CRWD’s TA Score has 4 bullish TA indicator(s).
- CDNS’s TA Score: 5 bullish, 6 bearish.
- CRWD’s TA Score: 4 bullish, 3 bearish.
Price Growth
CDNS (@Packaged Software) experienced а +7.85% price change this week, while CRWD (@Computer Communications) price change was +0.26% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was +0.15%. For the same industry, the average monthly price growth was -5.96%, and the average quarterly price growth was +13.43%.
The average weekly price growth across all stocks in the @Computer Communications industry was +0.29%. For the same industry, the average monthly price growth was -4.79%, and the average quarterly price growth was +26.59%.
Reported Earning Dates
CDNS is expected to report earnings on Oct 26, 2026.
CRWD is expected to report earnings on Dec 01, 2026.
Industries' Descriptions
@Packaged Software (+0.15% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
@Computer Communications (+0.29% weekly)Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.
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