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CDNS vs SNPS
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. Synopsys (SNPS) Stock Comparison
Key Takeaways
- CDNS and SNPS are leading providers of electronic design automation (EDA) software essential for semiconductor development, with both benefiting from artificial intelligence-driven chip complexity.
- Recent market activity shows both stocks experiencing notable declines, with CDNS trading near $293 and SNPS near $394 as of early September 2026, amid broader sector volatility.
- SNPS reported strong third-quarter results in late August, beating estimates and raising full-year guidance due to AI demand, though the stock faced initial pressure.
- CDNS has demonstrated relatively resilient year-to-date performance compared to SNPS, with a smaller percentage decline despite recent sharp drops.
- Both companies operate in the same high-growth sector with overlapping customers, but differ in emphasis on specific design flows and recent acquisition impacts such as SNPS’s Ansys integration.
- Market sentiment for the pair remains tied to AI infrastructure spending, with valuation multiples elevated relative to broader indices.
Introduction
Cadence Design Systems (CDNS) and Synopsys (SNPS) represent two dominant players in the electronic design automation industry, providing critical software tools that enable the creation of advanced semiconductors powering artificial intelligence and computing systems. This comparison examines their business models, recent stock behavior, and relative positioning in the current market environment. Institutional investors, growth-oriented traders, and sector specialists monitoring technology supply chains may find the analysis relevant for assessing competitive dynamics and momentum shifts between these closely related equities.
CDNS Overview and Recent Performance
Cadence Design Systems develops software solutions for chip design, verification, and implementation, serving semiconductor and electronics manufacturers. In recent weeks, CDNS shares have faced downward pressure, declining sharply in early September 2026 to close around $292.70 with a market capitalization near $80.6 billion. Year-to-date performance reflects a modest loss of approximately 6 percent, outperforming SNPS on a relative basis despite a multi-day selloff that erased significant value. Factors influencing sentiment include broader technology sector rotation and valuation concerns, though the company maintains strong operating margins and revenue growth above broader market medians.
SNPS Overview and Recent Performance
Synopsys provides electronic design automation tools focused on synthesis, verification, and systems-level design, with recent expansion through the Ansys acquisition enhancing its portfolio. In recent market activity, SNPS shares traded near $393.84 in early September 2026, with a market capitalization around $75.5 billion following a period of volatility. The stock posted a stronger third-quarter earnings report in late August, exceeding expectations and prompting raised full-year guidance driven by artificial intelligence demand, yet experienced subsequent price weakness. Year-to-date returns show a larger decline than CDNS, reflecting integration effects and market sentiment shifts.
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Head-to-Head Comparison
Both CDNS and SNPS derive revenue primarily from software licenses and maintenance in the EDA sector, with exposure to semiconductor capital spending cycles and artificial intelligence infrastructure buildout. SNPS benefits from a larger recent acquisition that broadens its systems-level capabilities, potentially offering diversified growth drivers, while CDNS emphasizes custom analog and verification strengths with a more subscription-oriented revenue mix. Recent momentum favors SNPS on earnings beats and guidance upgrades, yet CDNS has shown greater price stability year-to-date. Risk factors include high valuation multiples for both and sensitivity to customer concentration in the chip industry. Sector exposure remains similar, though market sentiment has weighed more heavily on SNPS following its post-earnings reaction.
Tickeron AI Verdict
Based on observable factors such as relative price stability, earnings momentum, and positioning within the artificial intelligence supply chain, Tickeron’s AI models currently assign a probabilistic edge to CDNS for near-term trend consistency, though SNPS demonstrates stronger catalyst potential from recent results. Outcomes remain dependent on sustained semiconductor demand and broader market conditions.
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.
Disclaimers and LimitationsBoth 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 0 FA rating(s) are green whileSNPS’s FA Score has 0 green FA rating(s).
- CDNS’s FA Score: 0 green, 5 red.
- SNPS’s FA Score: 0 green, 5 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 3 TA indicator(s) are bullish while SNPS’s TA Score has 4 bullish TA indicator(s).
- CDNS’s TA Score: 3 bullish, 5 bearish.
- SNPS’s TA Score: 4 bullish, 6 bearish.
Price Growth
CDNS (@Packaged Software) experienced а -14.01% price change this week, while SNPS (@Computer Communications) price change was -11.02% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -3.96%. For the same industry, the average monthly price growth was -2.40%, and the average quarterly price growth was +3.47%.
The average weekly price growth across all stocks in the @Computer Communications industry was -1.84%. For the same industry, the average monthly price growth was -1.07%, and the average quarterly price growth was +15.21%.
Reported Earning Dates
CDNS is expected to report earnings on Oct 26, 2026.
SNPS is expected to report earnings on Dec 02, 2026.
Industries' Descriptions
@Packaged Software (-3.96% 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 (-1.84% 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 | 80.6B | 75.5B | 107% |
| EBITDA | 2.28B | 3.73B | 61% |
| Gain YTD | -6.360 | -16.154 | 39% |
| P/E Ratio | 58.19 | 68.73 | 85% |
| Revenue | 5.84B | 9.42B | 62% |
| Total Cash | 1.44B | 3.61B | 40% |
| Total Debt | 2.65B | 10.8B | 25% |
CDNS | SNPS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 43 | 76 | |
SMR RATING 1..100 | 42 | 86 | |
PRICE GROWTH RATING 1..100 | 64 | 63 | |
P/E GROWTH RATING 1..100 | 86 | 44 | |
SEASONALITY SCORE 1..100 | 75 | 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 (69) in the Packaged Software industry is in the same range as CDNS (83) 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 (43) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (76) 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 (86) in the Packaged Software industry. This means that CDNS’s stock grew somewhat faster than SNPS’s over the last 12 months.
SNPS's Price Growth Rating (63) in the Packaged Software industry is in the same range as CDNS (64) in the Electronic Production Equipment industry. This means that SNPS’s stock grew similarly to CDNS’s over the last 12 months.
SNPS's P/E Growth Rating (44) in the Packaged Software industry is somewhat better than the same rating for CDNS (86) 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 (%) | 4 days ago 76% | 4 days ago 64% |
| Stochastic ODDS (%) | 4 days ago 81% | 4 days ago 69% |
| Momentum ODDS (%) | 4 days ago 67% | 4 days ago 67% |
| MACD ODDS (%) | 4 days ago 73% | 4 days ago 70% |
| TrendWeek ODDS (%) | 4 days ago 65% | 4 days ago 63% |
| TrendMonth ODDS (%) | 4 days ago 67% | 4 days ago 59% |
| Advances ODDS (%) | 12 days ago 68% | 5 days ago 73% |
| Declines ODDS (%) | 4 days ago 65% | 7 days ago 61% |
| BollingerBands ODDS (%) | 4 days ago 66% | 4 days ago 64% |
| Aroon ODDS (%) | 4 days ago 67% | 4 days ago 66% |
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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% | -3.99% | ||
| SNPS - CDNS | 84% Closely correlated | -5.40% | ||
| S - CDNS | 59% Loosely correlated | +0.40% | ||
| MSFT - CDNS | 58% Loosely correlated | -2.04% | ||
| ORCL - CDNS | 58% Loosely correlated | +3.08% | ||
| CRWD - CDNS | 57% Loosely correlated | -0.87% | ||
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SNPS and
Correlation & Price change
A.I.dvisor indicates that over the last year, SNPS has been closely correlated with CDNS. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if SNPS jumps, then CDNS could also see price increases.
| Ticker / NAME | Correlation To SNPS | 1D Price Change % | ||
|---|---|---|---|---|
| SNPS | 100% | -5.40% | ||
| CDNS - SNPS | 88% Closely correlated | -3.99% | ||
| PDFS - SNPS | 66% Closely correlated | +5.04% | ||
| ROP - SNPS | 57% Loosely correlated | -3.57% | ||
| BSY - SNPS | 55% Loosely correlated | -5.28% | ||
| CLSK - SNPS | 55% Loosely correlated | +0.87% | ||
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