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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 and services essential for semiconductor and system design.
- In recent market activity, CDNS has delivered relative outperformance compared to SNPS, with stronger year-to-date returns amid broader sector fluctuations.
- Both companies operate in the same industry, benefiting from demand for advanced chip design tools driven by artificial intelligence and high-performance computing applications.
- CDNS maintains a higher market capitalization and lower debt levels relative to SNPS, while SNPS reports higher revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA).
- Valuation metrics show differences in price-to-earnings ratios, with SNPS trading at a premium in some comparisons during recent weeks.
- Market sentiment reflects sector exposure to semiconductors, with both stocks experiencing volatility tied to broader technology and AI-related developments.
Introduction
Cadence Design Systems (CDNS) and Synopsys (SNPS) represent two prominent companies in the electronic design automation (EDA) sector, providing critical software, intellectual property, and services for designing complex semiconductors and electronic systems. Investors and traders focused on technology, semiconductors, and artificial intelligence applications often examine these stocks to assess relative performance, growth drivers, and positioning within a competitive industry. This comparison highlights observable differences in business scale, recent price behavior, and market factors that may influence portfolio decisions for those seeking exposure to design tools supporting next-generation computing and electronics.
CDNS Overview and Recent Performance
Cadence Design Systems (CDNS) develops software and hardware solutions for integrated circuit design, verification, and system-level engineering, serving industries including hyperscale computing, automotive, and aerospace. In recent weeks, the stock has exhibited relative resilience within the technology sector, contributing to positive year-to-date performance amid fluctuating market conditions. Factors influencing sentiment include ongoing demand for advanced design tools in artificial intelligence and semiconductor applications, supporting steadier price behavior compared to some peers. Broader market activity tied to technology spending has played a role in maintaining investor interest, though the stock remains subject to sector-wide volatility.
SNPS Overview and Recent Performance
Synopsys (SNPS) provides design automation tools, intellectual property, and simulation solutions focused on silicon-to-system development, with applications in semiconductors and electronics. During recent market activity, the stock has faced downward pressure, including notable single-day moves and year-to-date declines, reflecting sensitivity to broader semiconductor and technology sector
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, 5 bearish.
- SNPS’s TA Score: 4 bullish, 3 bearish.
Price Growth
CDNS (@Packaged Software) experienced а -1.17% price change this week, while SNPS (@Computer Communications) price change was -2.81% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -4.81%. For the same industry, the average monthly price growth was -0.32%, and the average quarterly price growth was -13.41%.
The average weekly price growth across all stocks in the @Computer Communications industry was -5.08%. For the same industry, the average monthly price growth was -3.35%, and the average quarterly price growth was -4.81%.
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 (-4.81% 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 (-5.08% 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 | 90B | 71.5B | 126% |
| EBITDA | 1.98B | 2.91B | 68% |
| Gain YTD | 4.370 | -20.491 | -21% |
| P/E Ratio | 76.05 | 85.46 | 89% |
| 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 | 57 | 51 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 27 | 76 | |
SMR RATING 1..100 | 45 | 88 | |
PRICE GROWTH RATING 1..100 | 59 | 65 | |
P/E GROWTH RATING 1..100 | 58 | 30 | |
SEASONALITY SCORE 1..100 | 50 | 46 |
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 (64) in the Packaged Software industry is in the same range as CDNS (88) 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 (27) 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 (45) in the Electronic Production Equipment industry is somewhat better than the same rating for SNPS (88) 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 (59) in the Electronic Production Equipment industry is in the same range as SNPS (65) 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 (30) in the Packaged Software industry is in the same range as CDNS (58) 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 (%) | 2 days ago 90% | 2 days ago 83% |
| Stochastic ODDS (%) | 2 days ago 79% | 2 days ago 83% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 61% |
| MACD ODDS (%) | N/A | N/A |
| TrendWeek ODDS (%) | 2 days ago 64% | 2 days ago 63% |
| TrendMonth ODDS (%) | 2 days ago 65% | 2 days ago 59% |
| Advances ODDS (%) | 17 days ago 70% | 16 days ago 74% |
| Declines ODDS (%) | 2 days ago 63% | 2 days ago 61% |
| BollingerBands ODDS (%) | 2 days ago 83% | 2 days ago 84% |
| Aroon ODDS (%) | 2 days ago 63% | 2 days ago 56% |
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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% | -0.01% | ||
| CDNS - SNPS | 88% Closely correlated | -1.28% | ||
| PDFS - SNPS | 66% Closely correlated | -2.62% | ||
| ROP - SNPS | 57% Loosely correlated | +3.44% | ||
| BSY - SNPS | 55% Loosely correlated | +4.25% | ||
| CLSK - SNPS | 55% Loosely correlated | -6.98% | ||
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