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CDNS vs ORCL
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. Oracle (ORCL) Stock Comparison
Key Takeaways
- CDNS is a premium-multiple electronic design automation (EDA) leader benefiting from AI-driven chip-design demand, with a record backlog of roughly $8 billion and strong margin expansion.
- ORCL is posting explosive cloud revenue growth, but heavy capital spending and a widening free cash flow deficit have pressured sentiment and driven the stock sharply lower over the past year.
- The two names occupy very different risk profiles: CDNS offers recurring software economics at a rich valuation, while ORCL offers a lower earnings multiple tied to a capital-intensive AI infrastructure build-out.
- Recent momentum diverges, with CDNS holding up comparatively well while ORCL contends with credit-rating, funding, and data-center execution questions.
- Analyst consensus remains broadly positive on both, though target revisions suggest greater near-term uncertainty around ORCL's long-term targets.
- For the latest company-specific developments, explore CDNS Major News and CDNS Today's Price Move, as well as ORCL Major News and ORCL Today's Price Move.
- For a data-driven perspective on how automated systems are positioning across the market, explore the curated Trending AI Robots.
Introduction
Cadence Design Systems (CDNS) and Oracle (ORCL) are two technology leaders whose fortunes have become increasingly tied to artificial intelligence, yet through very different business models. CDNS provides the electronic design automation (EDA) software and silicon intellectual property used to design advanced chips, while ORCL is transforming from a database giant into a large-scale AI cloud infrastructure provider. Investors comparing these names are essentially weighing a high-margin, asset-light software franchise against a capital-intensive cloud build-out. This stock comparison is relevant to traders and investors seeking to understand how relative performance, market positioning, and risk profiles differ across two prominent AI beneficiaries.
CDNS Overview and Recent Performance
Cadence Design Systems is a leading provider of computational software, hardware, and silicon intellectual property used in semiconductor and electronic systems design. The company has positioned itself at the center of the AI-driven design cycle, launching agentic AI "super agent" platforms and expanding partnerships with major foundries and chipmakers such as TSMC, NVIDIA, and Samsung.
Recent market activity has been constructive but measured. In its most recent reported quarter, CDNS delivered revenue growth of roughly 24% year over year and a non-GAAP (adjusted) operating margin near 45%, supported by a record backlog of about $8 billion. Management raised its full-year outlook, citing sustained customer research and development spending tied to AI processors. Over the past year, the stock has gained around 25%, though momentum cooled after strong earlier runs as investors weighed a forward price-to-earnings multiple that remains well above the broader software industry. Recent developments—including an embedded-security IP acquisition, a sovereign AI data center launch, and new design-tool announcements—have reinforced the long-term growth narrative without eliminating concerns about valuation and semiconductor-cycle exposure.
ORCL Overview and Recent Performance
Oracle is a global enterprise software and cloud provider best known for its database and applications franchise. The company has recently pivoted aggressively toward AI cloud infrastructure, signing large-scale contracts—most notably with OpenAI—to supply data center capacity for AI training and inference workloads.
ORCL's fundamental growth has been striking. In its most recent fiscal quarter, revenue rose about 30% year over year, with cloud infrastructure revenue roughly doubling, and remaining performance obligations (RPO), or contracted but not-yet-recognized revenue, climbed to a record level above $660 billion. Despite this, the stock has fallen sharply over the past year, shedding roughly half its value from its 52-week high. The primary drag is execution and funding risk: capital expenditures have surged, free cash flow turned negative, and the company has signaled plans to raise tens of billions of dollars in debt and equity. S&P Global's mid-year downgrade of Oracle's credit rating to BBB-, the lowest investment-grade tier, compounded the pressure. Analysts have trimmed price targets even while maintaining broadly positive ratings, reflecting questions about data center build-out timelines and long-term profitability.
Trending AI Robots
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Head-to-Head Comparison
The clearest contrast between CDNS and ORCL is the nature of their AI exposure. CDNS is an asset-light "picks and shovels" provider that earns recurring, ratable software revenue from semiconductor designers, giving it high margins and a comparatively predictable backlog—but at a valuation premium that leaves little room for error. ORCL is betting on a capital-intensive model in which it owns and operates massive data centers, creating the potential for transformative revenue growth but also exposing it to financing costs, dilution, and execution risk.
Growth drivers also differ. CDNS's momentum is tied to chip-design complexity, foundry investment, and IP expansion, while ORCL's hinges on hyperscale cloud contracts and converting its enormous RPO into recognized revenue. On risk factors, CDNS faces concentration in the semiconductor cycle and premium-multiple sensitivity, whereas ORCL contends with credit quality, negative free cash flow, and dependency on a small number of very large customers. From a market-sentiment standpoint, CDNS has shown greater price stability in recent weeks, while ORCL remains more volatile and controversial.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor CDNS over ORCL in the current environment. CDNS demonstrates more consistent trend stability, a high-margin recurring revenue model, a record backlog, and constructive earnings momentum, which tend to align with trend-following signals. ORCL's fundamentals are expanding rapidly, but its negative free cash flow, funding needs, credit downgrade, and elevated volatility introduce conditions that automated systems often treat as higher risk. This assessment is probabilistic rather than definitive: should ORCL successfully convert its backlog into profitability and stabilize its balance sheet, sentiment could shift quickly. The AI view simply reflects that, at present, CDNS offers a steadier technical and fundamental profile.
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 Hold and ORCL is a Hold.
CDNS's Indicator enters downward trend
The Aroon Indicator for CDNS entered a downward trend on November 03, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 187 similar instances where the Aroon Indicator formed such a pattern. In 134 of the 187 cases the stock moved lower. This puts the odds of a downward move at 72%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CDNS moved out of overbought territory on October 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 21 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 55%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 66 cases where CDNS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 58%.
The Moving Average Convergence Divergence Histogram (MACD) for CDNS turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In 33 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CDNS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on CDNS as a result. In 66 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
CDNS moved above its 50-day moving average on November 06, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CDNS crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 84%.
Following a +8.40% 3-day Advance, the price is estimated to grow further. Considering data from situations where CDNS advanced for three days, in 223 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 36 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 43 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. CDNS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 91 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.847) is normal, around the industry mean (-1.942). P/E Ratio (63.225) is within average values for comparable stocks, (15.235). Projected Growth (PEG Ratio) (2.496) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.069) among similar stocks. P/S Ratio (13.141) is also within normal values, averaging (70.854).
ORCL's Indicator enters downward trend
The Aroon Indicator for ORCL entered a downward trend on October 27, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 166 similar instances where the Aroon Indicator formed such a pattern. In 119 of the 166 cases the stock moved lower. This puts the odds of a downward move at 72%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ORCL as a result. In 47 of 69 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 68%.
The Moving Average Convergence Divergence Histogram (MACD) for ORCL turned negative on November 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 38 similar instances when the indicator turned negative. In 25 of the 38 cases the stock turned lower in the days that followed. This puts the odds of success at 66%.
ORCL moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ORCL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +14.66% 3-day Advance, the price is estimated to grow further. Considering data from situations where ORCL advanced for three days, in 228 of 330 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
ORCL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 24 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 59 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.693) is normal, around the industry mean (16.846). P/E Ratio (17.917) is within average values for comparable stocks, (53.183). Projected Growth (PEG Ratio) (0.740) is also within normal values, averaging (3.648). Dividend Yield (0.017) settles around the average of (0.430) among similar stocks. P/S Ratio (5.858) is also within normal values, averaging (103.889).
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. ORCL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 89 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ORCL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
CDNS | ORCL | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 80 | 70 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 91 Overvalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 36 | 89 | |
SMR RATING 1..100 | 43 | 24 | |
PRICE GROWTH RATING 1..100 | 61 | 65 | |
P/E GROWTH RATING 1..100 | 77 | 95 | |
SEASONALITY SCORE 1..100 | 50 | 2 |
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.
ORCL's Valuation (59) in the Packaged Software industry is in the same range as CDNS (91) in the Electronic Production Equipment industry. This means that ORCL’s stock grew similarly to CDNS’s over the last 12 months.
CDNS's Profit vs Risk Rating (36) in the Electronic Production Equipment industry is somewhat better than the same rating for ORCL (89) in the Packaged Software industry. This means that CDNS’s stock grew somewhat faster than ORCL’s over the last 12 months.
ORCL's SMR Rating (24) in the Packaged Software industry is in the same range as CDNS (43) in the Electronic Production Equipment industry. This means that ORCL’s stock grew similarly to CDNS’s over the last 12 months.
CDNS's Price Growth Rating (61) in the Electronic Production Equipment industry is in the same range as ORCL (65) in the Packaged Software industry. This means that CDNS’s stock grew similarly to ORCL’s over the last 12 months.
CDNS's P/E Growth Rating (77) in the Electronic Production Equipment industry is in the same range as ORCL (95) in the Packaged Software industry. This means that CDNS’s stock grew similarly to ORCL’s over the last 12 months.
| CDNS | ORCL | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 55% | N/A |
| Stochastic ODDS (%) | 1 day ago 58% | 1 day ago 69% |
| Momentum ODDS (%) | 1 day ago 67% | 1 day ago 68% |
| MACD ODDS (%) | 1 day ago 63% | 1 day ago 66% |
| TrendWeek ODDS (%) | 1 day ago 66% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 69% | 1 day ago 71% |
| Advances ODDS (%) | 12 days ago 68% | 11 days ago 69% |
| Declines ODDS (%) | 23 days ago 66% | 3 days ago 68% |
| BollingerBands ODDS (%) | N/A | 1 day ago 76% |
| Aroon ODDS (%) | 1 day ago 72% | 1 day ago 72% |
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 ORCL’s FA Score has 1 green FA rating(s).
- CDNS’s FA Score: 0 green, 5 red.
- ORCL’s FA Score: 1 green, 4 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 4 TA indicator(s) are bullish while ORCL’s TA Score has 3 bullish TA indicator(s).
- CDNS’s TA Score: 4 bullish, 5 bearish.
- ORCL’s TA Score: 3 bullish, 5 bearish.
Price Growth
CDNS (@Packaged Software) experienced а -2.43% price change this week, while ORCL (@Computer Communications) price change was -11.15% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -2.34%. For the same industry, the average monthly price growth was -5.63%, and the average quarterly price growth was -4.69%.
The average weekly price growth across all stocks in the @Computer Communications industry was -6.89%. For the same industry, the average monthly price growth was -15.07%, and the average quarterly price growth was -10.08%.
Reported Earning Dates
CDNS is expected to report earnings on Feb 23, 2027.
ORCL is expected to report earnings on Dec 09, 2026.
Industries' Descriptions
@Packaged Software (-2.34% 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 (-6.89% 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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ORCL and
Correlation & Price change
A.I.dvisor indicates that over the last year, ORCL has been loosely correlated with CRWV. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if ORCL jumps, then CRWV could also see price increases.
| Ticker / NAME | Correlation To ORCL | 1D Price Change % | ||
|---|---|---|---|---|
| ORCL | 100% | +0.82% | ||
| CRWV - ORCL | 58% Loosely correlated | +6.28% | ||
| CDNS - ORCL | 54% Loosely correlated | +2.73% | ||
| ADSK - ORCL | 54% Loosely correlated | -2.76% | ||
| DSGX - ORCL | 51% Loosely correlated | -0.88% | ||
| RBRK - ORCL | 51% Loosely correlated | +0.01% | ||
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