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CDNS vs SNPS
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. Synopsys (SNPS) Stock Comparison
Key Takeaways
- Cadence Design Systems (CDNS) and Synopsys (SNPS) are leading providers of electronic design automation (EDA) software essential for advanced semiconductor development.
- In recent market activity, SNPS has delivered stronger year-to-date returns compared to CDNS, reflecting differing momentum amid AI-driven demand.
- Both companies benefit from long-term growth in artificial intelligence and complex chip design, though CDNS approaches near-term earnings with analyst focus on revenue guidance.
- SNPS recently reported solid quarterly results and announced strategic shifts toward higher-margin AI design tools.
- Sector exposure remains concentrated in technology hardware and software, exposing both stocks to similar macroeconomic and supply-chain influences.
- Relative performance highlights trade-offs in stability versus growth potential within the competitive EDA landscape.
Introduction
Cadence Design Systems (CDNS) and Synopsys (SNPS) represent two dominant players in the electronic design automation sector, providing critical software tools that enable the creation of advanced semiconductors powering modern electronics and artificial intelligence systems. Investors and traders focused on technology growth themes, particularly those tied to AI infrastructure and chip innovation, often evaluate these stocks together due to their overlapping customer bases and market dynamics. This comparison examines recent performance trends, business positioning, and key differentiators to support informed analysis of their relative standing in the current environment.
CDNS Overview and Recent Performance
Cadence Design Systems (CDNS) develops software solutions for electronic design, verification, and implementation used by semiconductor and electronics companies worldwide. In recent weeks, the stock has experienced modest pressure, closing at $326.24 on July 24, 2026, amid broader market movements and ahead of its second-quarter earnings release scheduled for July 27. Year-to-date returns stand at approximately 4.37%, trailing the S&P 500. Recent market activity reflects investor attention on upcoming results, with analysts projecting revenue growth driven by sustained demand for advanced chip design capabilities. Sentiment has been influenced by the company's established role in high-performance computing and AI-related design flows, though short-term volatility has aligned with sector-wide fluctuations.
SNPS Overview and Recent Performance
Synopsys (SNPS) offers a comprehensive suite of electronic design automation tools, intellectual property, and related services supporting chip development across multiple process nodes. The stock closed at $373.47 on July 24, 2026, with year-to-date returns reaching about 20.49%, outperforming the broader market. Recent performance has included volatility following its second-quarter fiscal 2026 results released in May, which showed revenue of $2.276 billion. Strategic moves, including a reported shift in focus toward AI-centric design offerings, have shaped sentiment. Over recent market activity, the company has maintained a position benefiting from expanding semiconductor complexity and artificial intelligence applications, though it has faced periodic pullbacks aligned with technology sector trends.
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Head-to-Head Comparison
Cadence Design Systems (CDNS) and Synopsys (SNPS) operate similar business models centered on electronic design automation software, yet differ in scale and emphasis. SNPS maintains a broader portfolio including intellectual property blocks, while CDNS focuses more narrowly on design and verification platforms. Growth drivers for both center on artificial intelligence and advanced node semiconductor demand, though recent momentum has favored SNPS on a year-to-date basis. Risk factors include high customer concentration in the semiconductor industry and exposure to capital expenditure cycles. Sector exposure remains tightly linked to technology hardware, creating comparable sensitivities to supply chain and macroeconomic shifts. Market sentiment reflects ongoing interest in EDA providers as enablers of AI hardware, with relative performance highlighting SNPS’s stronger recent returns against CDNS’s steadier but more tempered trajectory.
Tickeron AI Verdict
Based on observable factors such as relative year-to-date performance, trend consistency, and positioning ahead of sector catalysts, Tickeron’s AI would currently assign a modest probabilistic edge to SNPS for its demonstrated momentum and strategic alignment with AI design priorities. CDNS remains competitively positioned, particularly around its upcoming earnings, underscoring the close nature of the comparison in a dynamic market setting.
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.
Both headquartered in Silicon Valley, SNPS and CDNS provide products and services that are essential to the development and testing of microchips and other computing solutions. They both provide emulation tools for virtually designing and testing new products and systems before they go into production. Both in a strong position to grow with the Internet of Things and other innovations, such as self-driving cars and products using AI. They also provide hardware and software solutions that can splice together various kinds of codecs and libraries. For developers and manufacturers of semiconductors, the software made available to them by these companies are an integral part of their daily lives, and the revenue they get from established clients reveals their health and longevity. The recent infrastructure-bolstering government spending legislation has aims to increase incentives for innovation and development in the semiconductor industry domestically, which should keep SNPS and CDNS growing and profitable.
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 undervalued. 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 1 FA rating(s) are green whileSNPS’s FA Score has 1 green FA rating(s).
- CDNS’s FA Score: 1 green, 4 red.
- SNPS’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 SNPS’s TA Score has 4 bullish TA indicator(s).
- CDNS’s TA Score: 4 bullish, 6 bearish.
- SNPS’s TA Score: 4 bullish, 5 bearish.
Price Growth
CDNS (@Packaged Software) experienced а -4.25% price change this week, while SNPS (@Computer Communications) price change was +1.32% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -0.33%. For the same industry, the average monthly price growth was +3.65%, and the average quarterly price growth was +9.46%.
The average weekly price growth across all stocks in the @Computer Communications industry was +2.51%. For the same industry, the average monthly price growth was +1.81%, and the average quarterly price growth was +26.13%.
Reported Earning Dates
CDNS is expected to report earnings on Oct 26, 2026.
SNPS is expected to report earnings on Aug 26, 2026.
Industries' Descriptions
@Packaged Software (-0.33% 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 (+2.51% 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.
| CDNS | SNPS | CDNS / SNPS | |
| Capitalization | 89.5B | 80.7B | 111% |
| EBITDA | 2.28B | 2.91B | 78% |
| Gain YTD | 3.916 | -10.266 | -38% |
| P/E Ratio | 64.58 | 96.45 | 67% |
| Revenue | 5.84B | 8.68B | 67% |
| Total Cash | 1.44B | 2.48B | 58% |
| Total Debt | 2.65B | 10.8B | 25% |
CDNS | SNPS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 20 | 7 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 85 Overvalued | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 29 | 69 | |
SMR RATING 1..100 | 42 | 87 | |
PRICE GROWTH RATING 1..100 | 62 | 63 | |
P/E GROWTH RATING 1..100 | 83 | 23 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
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.
SNPS's Valuation (74) in the Packaged Software industry is in the same range as CDNS (85) in the Electronic Production Equipment industry. This means that SNPS’s stock grew similarly to CDNS’s over the last 12 months.
CDNS's Profit vs Risk Rating (29) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (69) in the Packaged Software industry. This means that CDNS’s stock grew somewhat faster than SNPS’s over the last 12 months.
CDNS's SMR Rating (42) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (87) in the Packaged Software industry. This means that CDNS’s stock grew somewhat faster than SNPS’s over the last 12 months.
CDNS's Price Growth Rating (62) in the Electronic Production Equipment industry is in the same range as SNPS (63) in the Packaged Software industry. This means that CDNS’s stock grew similarly to SNPS’s over the last 12 months.
SNPS's P/E Growth Rating (23) in the Packaged Software industry is somewhat better than the same rating for CDNS (83) in the Electronic Production Equipment industry. This means that SNPS’s stock grew somewhat faster than CDNS’s over the last 12 months.
| CDNS | SNPS | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 78% | 2 days ago 90% |
| Stochastic ODDS (%) | 2 days ago 75% | 2 days ago 72% |
| Momentum ODDS (%) | 2 days ago 66% | 2 days ago 71% |
| MACD ODDS (%) | 2 days ago 67% | 2 days ago 72% |
| TrendWeek ODDS (%) | 2 days ago 65% | 2 days ago 71% |
| TrendMonth ODDS (%) | 2 days ago 66% | 2 days ago 60% |
| Advances ODDS (%) | 2 days ago 68% | 9 days ago 73% |
| Declines ODDS (%) | 4 days ago 64% | 5 days ago 62% |
| BollingerBands ODDS (%) | 2 days ago 80% | 2 days ago 58% |
| Aroon ODDS (%) | 2 days ago 70% | 2 days ago 62% |
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CDNS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CDNS has been closely correlated with SNPS. These tickers have moved in lockstep 84% of the time. This A.I.-generated data suggests there is a high statistical probability that if CDNS jumps, then SNPS could also see price increases.
| Ticker / NAME | Correlation To CDNS | 1D Price Change % | ||
|---|---|---|---|---|
| CDNS | 100% | +0.32% | ||
| SNPS - CDNS | 84% Closely correlated | +2.37% | ||
| S - CDNS | 59% Loosely correlated | -3.06% | ||
| MSFT - CDNS | 58% Loosely correlated | -0.30% | ||
| ORCL - CDNS | 58% Loosely correlated | -3.65% | ||
| CRWD - CDNS | 57% Loosely correlated | -3.80% | ||
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