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CDNS vs SNPS
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. Synopsys (SNPS) Stock Comparison
Key Takeaways
- CDNS has delivered stronger year-to-date performance than SNPS, with approximately 19.5% gains compared to roughly 11.7% for SNPS through recent market activity.
- Both companies operate in the electronic design automation (EDA) sector, providing software and intellectual property solutions critical to semiconductor and electronics design.
- Recent market activity shows both stocks posting gains exceeding 4% on May 22, 2026, with CDNS reaching a new 52-week high.
- CDNS and SNPS benefit from ongoing demand in artificial intelligence hardware and advanced chip development.
- Relative positioning favors CDNS in short-term momentum metrics, while SNPS maintains a larger market capitalization and broader design IP portfolio.
- Sector exposure to semiconductors exposes both stocks to similar macroeconomic and supply-chain influences.
Introduction
Cadence Design Systems (CDNS) and Synopsys (SNPS) are leading providers of electronic design automation tools used across the semiconductor industry. This comparison examines their relative performance, business models, and positioning in the current market environment. Institutional investors, active traders, and technology-focused portfolios may find the analysis relevant when evaluating exposure to the EDA segment, which supports chip design for artificial intelligence, automotive, and consumer electronics applications.
CDNS Overview and Recent Performance
Cadence Design Systems develops computational software, hardware, and silicon intellectual property for designing integrated circuits and electronic systems. In recent weeks, CDNS shares have shown notable strength, closing at $373.59 on May 22, 2026, after a 4.22% gain that established a new 52-week high. Year-to-date returns stand at approximately 19.5%, outpacing the broader market. Sentiment has been supported by analyst price target increases and sustained demand for its design solutions amid expanding semiconductor requirements.
SNPS Overview and Recent Performance
Synopsys provides design automation and intellectual property solutions for semiconductor and electronics industries through its design automation and design IP segments. In recent market activity, SNPS closed at $524.74 on May 22, 2026, following a 4.12% advance. Year-to-date performance registers around 11.7%. The stock has benefited from its established role in verification and IP licensing, though it has trailed CDNS in relative gains over the period.
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Head-to-Head Comparison
Both CDNS and SNPS operate within the same EDA industry, supplying tools that accelerate chip design and verification. CDNS emphasizes system-level design and hardware-software integration, while SNPS maintains a larger presence in reusable design IP and comprehensive verification platforms. Recent momentum has favored CDNS, evidenced by superior year-to-date returns and a fresh 52-week high. SNPS carries a comparable market capitalization but has shown comparatively muted gains. Risk factors for both include exposure to semiconductor capital spending cycles and geopolitical tensions affecting global chip supply chains. Market sentiment remains constructive for the sector due to artificial intelligence-driven demand, though relative outperformance has shifted toward CDNS in the latest period.
Tickeron AI Verdict
Based on observable factors including stronger recent price consistency, year-to-date outperformance, and attainment of new highs, Tickeron’s AI would currently assign a higher probability of favorable near-term positioning to CDNS over SNPS. SNPS continues to offer stability through its scale and IP breadth, yet momentum indicators tilt the relative assessment modestly toward CDNS at present.
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 2 FA rating(s) are green whileSNPS’s FA Score has 1 green FA rating(s).
- CDNS’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while SNPS’s TA Score has 5 bullish TA indicator(s).
- CDNS’s TA Score: 5 bullish, 4 bearish.
- SNPS’s TA Score: 5 bullish, 5 bearish.
Price Growth
CDNS (@Packaged Software) experienced а +2.33% price change this week, while SNPS (@Computer Communications) price change was -2.36% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -2.27%. For the same industry, the average monthly price growth was +0.37%, and the average quarterly price growth was -8.09%.
The average weekly price growth across all stocks in the @Computer Communications industry was -1.12%. For the same industry, the average monthly price growth was +2.86%, and the average quarterly price growth was +21.28%.
Reported Earning Dates
CDNS is expected to report earnings on Jul 27, 2026.
SNPS is expected to report earnings on Aug 19, 2026.
Industries' Descriptions
@Packaged Software (-2.27% 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 (-1.12% 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 | 106B | 86.9B | 122% |
| EBITDA | 1.98B | 2.91B | 68% |
| Gain YTD | 23.156 | -3.370 | -687% |
| P/E Ratio | 89.73 | 103.86 | 86% |
| Revenue | 5.53B | 8.68B | 64% |
| Total Cash | 1.41B | 2.48B | 57% |
| Total Debt | 3.08B | 10.8B | 29% |
CDNS | SNPS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 75 | 58 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 17 | 55 | |
SMR RATING 1..100 | 45 | 89 | |
PRICE GROWTH RATING 1..100 | 15 | 59 | |
P/E GROWTH RATING 1..100 | 37 | 12 | |
SEASONALITY SCORE 1..100 | 50 | 85 |
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 (89) 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 (17) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (55) 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 (45) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (89) 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 (15) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (59) in the Packaged Software industry. This means that CDNS’s stock grew somewhat faster than SNPS’s over the last 12 months.
SNPS's P/E Growth Rating (12) in the Packaged Software industry is in the same range as CDNS (37) in the Electronic Production Equipment industry. This means that SNPS’s stock grew similarly to CDNS’s over the last 12 months.
| CDNS | SNPS | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 54% | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 77% | 3 days ago 85% |
| Momentum ODDS (%) | 3 days ago 67% | 3 days ago 71% |
| MACD ODDS (%) | 3 days ago 67% | 3 days ago 64% |
| TrendWeek ODDS (%) | 3 days ago 71% | 3 days ago 61% |
| TrendMonth ODDS (%) | 3 days ago 68% | 3 days ago 58% |
| Advances ODDS (%) | 13 days ago 70% | 13 days ago 75% |
| Declines ODDS (%) | 4 days ago 62% | 3 days ago 58% |
| BollingerBands ODDS (%) | 3 days ago 64% | 3 days ago 81% |
| Aroon ODDS (%) | 3 days ago 60% | 3 days ago 59% |
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