CDNS stock forecast, quote, news & analysis
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products... Show more
Why Cadence Design Systems (CDNS) Stock Is Up +20% in the Last 30 Days
Key Takeaways
- Cadence Design Systems shares climbed roughly 20% in the 30 days through early October 2026, rising from a $292.70 close on September 4 to a $351.35 close on October 2.
- The advance marked a sharp recovery from an early-September pullback, although the stock remains below its late-summer and 52-week highs.
- An expanded collaboration with TSM, new agentic AI product launches, and a series of analyst price-target increases supported the rebound.
- Strong second-quarter 2026 results—24% revenue growth and a record $8.1 billion backlog—alongside raised full-year guidance underpin investor sentiment.
- Over the trailing quarter, CDNS is down roughly 6%, reflecting the broader drawdown that preceded the recent recovery.
Cadence Design Systems (CDNS) Company Overview and Market Position
Cadence Design Systems is a leading provider of electronic design automation (EDA) software, semiconductor intellectual property (IP), and system design and analysis tools. Its platform helps chipmakers and systems companies design, verify, and implement the increasingly complex integrated circuits used in data centers, smartphones, automotive, and artificial intelligence (AI) hardware. The company operates a largely recurring software revenue model, complemented by emulation and prototyping hardware and a fast-growing IP portfolio.
Cadence competes primarily with SNPS in the EDA market, and its customers include major foundries and chip designers such as TSM and INTC. Investors follow CDNS closely because its tools sit at the center of the semiconductor design supply chain, making the stock a direct play on rising chip complexity and AI-driven custom-silicon demand.
Cadence Design Systems (CDNS) Stock Price Performance: Last 30 Days vs. Quarter
Over the last 30 days, CDNS rose from a closing price of $292.70 on September 4, 2026, to $351.35 on October 2, 2026—an increase of approximately 20%. The move was not a straight line higher. Shares fell through mid-September, touching a low near $274 in mid-September, before staging a sustained rebound that accelerated in late September and early October.
The shorter-term gain stands in contrast to the trailing quarter. Measured from the July 2, 2026, close of $373.14 to the October 2 close of $351.35, the stock is down about 6%. In other words, the recent rally has recovered a meaningful portion—but not all—of a decline that unfolded over the summer and into early September.
What Drove CDNS Stock Price in the Last 30 Days
Several company-specific catalysts fueled the 30-day rebound. On September 23, 2026, Cadence and Taiwan Semiconductor Manufacturing announced an expanded collaboration certifying Cadence's analog, digital, and verification flows for TSMC's most advanced process nodes and providing silicon-proven IP for PCIe 6.0, DDR5, LPDDR6, and HBM4E interfaces aimed at AI and high-performance computing designers.
Cadence also continued to expand its agentic AI product lineup. In early September, the company introduced an RTL Generation Agent for its ChipStack AI Super Agent platform, which it said automates specification-to-RTL design generation. These announcements reinforced the company's positioning in AI-assisted chip design.
Analyst activity added support. FBN Securities initiated coverage with an Outperform rating and a $375 price target on September 11, 2026, citing Cadence's roughly 80%-recurring software model and its central role in the semiconductor supply chain. Morgan Stanley raised its target to $400 with an Overweight rating, while other firms maintained or raised Buy-equivalent ratings. This combination of a major foundry partnership, AI product momentum, and constructive sell-side commentary helped lift shares even as broader equity indices were little changed.
What Drove CDNS Stock Performance Over the Last Quarter
Despite reporting strong second-quarter results on July 27, 2026—revenue of $1.584 billion, up 24.2% year over year, non-GAAP earnings of $2.11 per share, and a record $8.1 billion backlog—CDNS shares pulled back through late summer. The decline reflected broader pressure on high-multiple semiconductor and technology names, alongside investor concerns about export-control exposure, near-term margin dilution from the integration of the Hexagon design and engineering business, and the still-unquantified pace of agentic AI monetization.
The company's fundamental momentum, however, remained intact. Cadence raised its full-year 2026 revenue outlook to a range of $6.26 billion to $6.34 billion, implying roughly 19% growth, and lifted its non-GAAP earnings outlook. The late-September rally represented a reassessment of that growth profile as the foundry partnership and AI product news gave investors a more concrete reason to re-engage with the stock.
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CDNS Stock Forecast Drivers: What Investors Should Watch Next
Looking ahead, investors will focus on Cadence's third-quarter 2026 results, expected around late October, which will test whether the strong IP and AI-driven demand trends continued. Management's commentary on agentic AI adoption, the Intel IP agreement's revenue ramp, and the integration of the Hexagon business will be closely watched, as will any updates to full-year guidance and margins.
Macroeconomic and regulatory factors also matter. Export-control developments, semiconductor industry capital spending, and the pace of AI infrastructure investment can all influence demand for Cadence's tools. Competitive dynamics with Synopsys and the speed at which AI design products convert from early traction to measurable revenue remain key variables. These factors, rather than any single near-term catalyst, are likely to shape the stock's direction over the months ahead.
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.
CDNS sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for CDNS moved below the 200-day moving average on September 18, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
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 39 similar instances where the indicator moved out of overbought territory. In 28 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 72%.
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CDNS as a result. In 67 of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 68%.
The Moving Average Convergence Divergence Histogram (MACD) for CDNS turned negative on October 14, 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 36 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
CDNS moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
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%.
CDNS broke above its upper Bollinger Band on September 24, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for CDNS crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 74%.
Following a +2.33% 3-day Advance, the price is estimated to grow further. Considering data from situations where CDNS advanced for three days, in 222 of 325 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 116 of 192 cases where CDNS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 42 (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 Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. CDNS’s price grows at a higher 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 Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 Valuation Rating of 90 (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 (12.709) is normal, around the industry mean (-1.853). P/E Ratio (62.547) is within average values for comparable stocks, (15.200). Projected Growth (PEG Ratio) (2.496) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.075) among similar stocks. P/S Ratio (13.141) is also within normal values, averaging (71.128).
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General Information
a developer of integrated circuits and electronic devices and provides software services
Industry PackagedSoftware