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CDNS vs SNPS
Which Stock Would AI Choose? Cadence Design Systems (CDNS) vs. Synopsys (SNPS) Stock Comparison
Key Takeaways
- Both companies are leaders in electronic design automation (EDA) — the software used to design semiconductor chips — giving each strong exposure to the AI-driven chip boom.
- Cadence Design Systems has delivered a consistent beat-and-raise pattern, including a record order backlog and raised full-year guidance, supporting steadier momentum.
- Synopsys has generated faster headline revenue growth and high-profile AI partnerships with OpenAI and Amazon Web Services, but it carries added complexity from its Ansys integration and an activist investor campaign.
- Tickeron AI Verdict: CDNS — based on trend consistency, relative stability, and cleaner market positioning, Tickeron's AI would currently favor Cadence Design Systems.
- For deeper coverage, explore CDNS Major News and CDNS Today's Price Move, plus SNPS Major News and SNPS Today's Price Move.
- Discover how automated strategies are positioning across the market by exploring Trending AI Robots.
Introduction
Cadence Design Systems (CDNS) and Synopsys (SNPS) are the two dominant players in the electronic design automation (EDA) industry — the specialized software and intellectual property (IP) used to design and verify the world's most advanced semiconductors. Because virtually every AI accelerator and data-center chip begins with EDA tools, both stocks sit at the center of the artificial-intelligence investment cycle. This stock comparison is relevant for growth-oriented investors and traders evaluating which name offers the more attractive mix of relative performance, momentum, and risk in the current market environment, particularly as agentic AI reshapes chip-design workflows.
CDNS Overview and Recent Performance
Cadence Design Systems is a leading provider of EDA software, design IP, and system design and analysis tools. Its products span chip design, verification, and full electromechanical systems, serving markets from data-center computing to automotive and aerospace. In recent weeks, Cadence has leaned aggressively into agentic AI — autonomous software agents that automate parts of the design process — launching its "Maestro" portfolio of domain-specialized AI models and expanding partnerships with NVIDIA, TSMC, and Google Cloud.
Fundamentally, Cadence delivered a beat-and-raise quarter, growing revenue roughly 22% year over year while lifting its full-year revenue growth outlook to about 21%. It reported a record order backlog of approximately $8.2 billion and authorized an additional $2.5 billion in share repurchases. This combination of accelerating software revenue, expanding backlog, and shareholder returns has supported constructive sentiment, though the stock still trades below its 52-week high, reflecting broader software-valuation caution.
SNPS Overview and Recent Performance
Synopsys provides EDA software and design IP and has broadened its footprint into physics-based simulation through its acquisition of Ansys. The company offers digital and custom IC design, verification, and hardware-assisted verification tools, alongside a large IP catalog. Its recent narrative has centered on the AI-driven transformation of engineering and on partnerships with OpenAI and Amazon Web Services announced around its investor day.
Synopsys has posted some of the fastest headline revenue growth of the two, aided by the Ansys contribution, and raised its full-year guidance while initiating a $1 billion accelerated share repurchase. However, its recent period has been more volatile: shares rose sharply on the AI partnership news but have also faced scrutiny over Ansys integration costs, softer design IP trends, elevated debt, and a board seat granted to activist investor Elliott Management. These factors add execution complexity even as long-term demand signals remain positive.
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Head-to-Head Comparison
The two companies share a common business model — selling mission-critical EDA software and IP to chipmakers — but their market positioning differs in important ways. Cadence has emphasized organic expansion into system design and analysis and agentic AI, reflected in a higher return on equity and a steadily growing backlog. Synopsys has pursued a more acquisition-driven path, most notably the Ansys deal, which adds simulation scale but also integration risk, a larger debt load, and near-term margin pressure.
On growth, Synopsys shows faster headline revenue gains, though a meaningful share comes from the Ansys contribution and inorganic factors, while Cadence's growth is more concentrated in its core recurring software. On momentum, Cadence has traded more consistently through recent earnings, whereas Synopsys has experienced sharper swings tied to partnership announcements and activist headlines. Risk profiles also diverge: Synopsys carries integration and leverage considerations, while Cadence faces elevated valuation expectations that leave less room for disappointment.
Tickeron AI Verdict
Weighing observable factors such as trend consistency, relative stability, and market positioning, Tickeron's AI would currently lean toward CDNS. Cadence's steadier beat-and-raise execution, record backlog, and cleaner organic growth profile suggest more consistent underlying momentum, whereas Synopsys's faster headline growth is accompanied by greater integration complexity and balance-sheet considerations. This assessment reflects a probabilistic comparison of current positioning rather than a definitive forecast, and either stock's standing could shift as new earnings data and AI-related catalysts emerge.
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.
CDNS in upward trend: price rose above 50-day moving average on November 06, 2026
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. In 32 of 45 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
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%.
Following a +8.06% 3-day Advance, the price is estimated to grow further. Considering data from situations where CDNS advanced for three days, in 220 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
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 22 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 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 65%.
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 31 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
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%.
The Aroon Indicator for CDNS entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 34 (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 60 (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 (-1.906). P/E Ratio (63.225) is within average values for comparable stocks, (9.554). 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 (70.383).
SNPS in upward trend: price rose above 50-day moving average on November 06, 2026
SNPS 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. In 27 of 34 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on SNPS as a result. In 58 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 72%.
The 50-day moving average for SNPS moved above the 200-day moving average on November 09, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +6.05% 3-day Advance, the price is estimated to grow further. Considering data from situations where SNPS advanced for three days, in 244 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
SNPS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 148 of 229 cases where SNPS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Bearish Trend Analysis
The 10-day RSI Indicator for SNPS moved out of overbought territory on October 13, 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 33 similar instances where the indicator moved out of overbought territory. In 20 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 61%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 59 cases where SNPS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for SNPS turned negative on October 16, 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 45 similar instances when the indicator turned negative. In 23 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 51%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNPS 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 61%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 11 (best 1 - 100 worst), pointing to outstanding 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 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 57 (best 1 - 100 worst), indicating steady price growth. SNPS’s price grows at a higher 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 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Valuation Rating of 85 (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 (2.771) is normal, around the industry mean (16.272). P/E Ratio (77.934) is within average values for comparable stocks, (52.956). Projected Growth (PEG Ratio) (2.237) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.430) among similar stocks. P/S Ratio (7.675) is also within normal values, averaging (103.889).
The Tickeron SMR rating for this company is 86 (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
CDNS | SNPS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 12 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 91 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 34 | 59 | |
SMR RATING 1..100 | 43 | 86 | |
PRICE GROWTH RATING 1..100 | 60 | 57 | |
P/E GROWTH RATING 1..100 | 77 | 11 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
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 (85) in the Packaged Software industry is in the same range as CDNS (91) 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 (34) in the Electronic Production Equipment industry is in the same range as SNPS (59) in the Packaged Software industry. This means that CDNS’s stock grew similarly to SNPS’s over the last 12 months.
CDNS's SMR Rating (43) 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 (57) in the Packaged Software industry is in the same range as CDNS (60) 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 (11) in the Packaged Software industry is significantly better than the same rating for CDNS (77) in the Electronic Production Equipment industry. This means that SNPS’s stock grew significantly faster than CDNS’s over the last 12 months.
| CDNS | SNPS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 58% | 1 day ago 61% |
| Stochastic ODDS (%) | 1 day ago 65% | 1 day ago 73% |
| Momentum ODDS (%) | 1 day ago 67% | 1 day ago 72% |
| MACD ODDS (%) | 1 day ago 60% | 1 day ago 51% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 72% |
| TrendMonth ODDS (%) | 1 day ago 69% | 1 day ago 61% |
| Advances ODDS (%) | 1 day ago 67% | 1 day ago 73% |
| Declines ODDS (%) | 26 days ago 66% | 8 days ago 61% |
| BollingerBands ODDS (%) | N/A | 1 day ago 78% |
| Aroon ODDS (%) | 1 day ago 72% | 1 day ago 65% |
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 SNPS’s FA Score has 1 green FA rating(s).
- CDNS’s FA Score: 0 green, 5 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 3 TA indicator(s) are bullish while SNPS’s TA Score has 6 bullish TA indicator(s).
- CDNS’s TA Score: 3 bullish, 5 bearish.
- SNPS’s TA Score: 6 bullish, 4 bearish.
Price Growth
CDNS (@Packaged Software) experienced а +2.13% price change this week, while SNPS (@Computer Communications) price change was +0.19% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -0.28%. For the same industry, the average monthly price growth was -5.06%, and the average quarterly price growth was +4.18%.
The average weekly price growth across all stocks in the @Computer Communications industry was -2.23%. For the same industry, the average monthly price growth was -13.60%, and the average quarterly price growth was -4.29%.
Reported Earning Dates
CDNS is expected to report earnings on Feb 23, 2027.
SNPS is expected to report earnings on Dec 08, 2026.
Industries' Descriptions
@Packaged Software (-0.28% 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 (-2.23% 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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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% | +5.19% | ||
| SNPS - CDNS | 84% Closely correlated | +3.67% | ||
| S - CDNS | 59% Loosely correlated | +8.04% | ||
| MSFT - CDNS | 58% Loosely correlated | +2.75% | ||
| ORCL - CDNS | 58% Loosely correlated | +3.18% | ||
| CRWD - CDNS | 57% Loosely correlated | +5.38% | ||
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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% | +3.67% | ||
| CDNS - SNPS | 88% Closely correlated | +5.19% | ||
| PDFS - SNPS | 66% Closely correlated | +8.03% | ||
| ROP - SNPS | 57% Loosely correlated | -1.04% | ||
| BSY - SNPS | 55% Loosely correlated | +1.68% | ||
| CLSK - SNPS | 55% Loosely correlated | +12.18% | ||
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