Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

<ul>
<li>China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. </li>
<li>China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. </li>
<li>Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.</li>
</ul>


China represents ~11% of revenues for Cadence and Synopsys. The weight of China has been declining. 
China has a number of startup working on replacement software, the leader is Empyrean – good but some years behind Cadence and Synopsys and focused on legacy chip design. 
Between this news today and more restrictions on Nvidia’s sales to China, it looks like more US restrictions will come.


President Trump “orders US Chip Software Suppliers to Stop Selling to China”

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Reports of Samsung securing 2nm customers (Nvidia, Qualcomm), but AMD is saying that TSMC has the best and only 2nm, Nvidia saying there’s no alternative to TSMC CoWoS.   </li>
<li>Competition at 2nm / 18A is already over. Chips tape-out are rolling out. If Intel, Samsung can gain Foundry customers, it is for the next node 14A in 2027-28.</li>
<li>The difficulty for Intel and Samsung is that TSMC is a lot faster to develop PDK, qualify process, tape-out chips. The total cost of chipdesign at US$0.5-1bn is another hurdle.  </li>
</ul>


Reports of Samsung securing 2nm customers (Nvidia, Qualcomm), but AMD is saying that TSMC has the best and only 2nm, Nvidia saying there’s no alternative to TSMC CoWoS.   
Competition at 2nm / 18A is already over. Chips tape-out are rolling out. If Intel, Samsung can gain Foundry customers, it is for the next node 14A in 2027-28.
The difficulty for Intel and Samsung is that TSMC is a lot faster to develop PDK, qualify process, tape-out chips. The total cost of chipdesign at US$0.5-1bn is another hurdle.  


Just Listen to Jensen (And Lisa): TSMC, Intel, Samsung

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Cadence Design Systems, Inc. reported its financial results for the third quarter of 2024, recording impressive performance across various aspects of its business.</li><li>Total revenue for the quarter surpassed $1.2 billion, reflecting a 19% year-over-year growth.</li><li>This was accompanied by a non-GAAP operating margin of 44.8% and non-GAAP earnings per share (EPS) of $1.64.</li></ul>

Cadence Design Systems, Inc. reported its financial results for the third quarter of 2024, recording impressive performance across various aspects of its business.Total revenue for the quarter surpassed $1.2 billion, reflecting a 19% year-over-year growth.This was accompanied by a non-GAAP operating margin of 44.8% and non-GAAP earnings per share (EPS) of $1.64.

Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Thematic (Sector/Industry)

<ul>
<li>This is going to be a big week, so I’ll be as brief as I can while getting everything in one place.</li>
<li>Let’s start with Automotive, which is my favorite idea set right now. The problem is that the near-term results were much weaker than I expected, and it looks like the bottom is maybe in.</li>
<li>I was expecting another quarter of scrapping along the bottom, and Industrial weakness punched a new low.</li>
</ul>


This is going to be a big week, so I’ll be as brief as I can while getting everything in one place.
Let’s start with Automotive, which is my favorite idea set right now. The problem is that the near-term results were much weaker than I expected, and it looks like the bottom is maybe in.
I was expecting another quarter of scrapping along the bottom, and Industrial weakness punched a new low.


Earnings: NXPI, CDNS, TXN, SLAB, Alphawave, TSEM, KLAC, SK Hynix, MXL, STM, ASMI, VRT, UCTT

<ul><li>Cadence Design Systems, Inc. reported strong results and exceeded expectations for their second quarter of 2024, with broad-based momentum seen across their product portfolio.</li><li>The company also posted stronger bookings than anticipated, leading to a strong backlog, demonstrating the robust demand for their innovative products.</li><li>Cadence updated its revenue guidance for the year to over 13% year-over-year growth, reflecting its strong performance.</li></ul>

Cadence Design Systems, Inc. reported strong results and exceeded expectations for their second quarter of 2024, with broad-based momentum seen across their product portfolio.The company also posted stronger bookings than anticipated, leading to a strong backlog, demonstrating the robust demand for their innovative products.Cadence updated its revenue guidance for the year to over 13% year-over-year growth, reflecting its strong performance.

Cadence Design Systems: Increasing Demand for 3D-IC Technology & Recurring Revenue Growth Makes This A 'Buy'? - Major Drivers

United States

Cadence Design Systems, Inc. provides software technology, design and consulting services and technology.  The Company licenses its electronic design automation software technology and provides a variety of professional services.  Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors.

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Cadence Design Sys (CDNS US)

President Trump “orders US Chip Software Suppliers to Stop Selling to China”

US could restrict US chip design software vendors to sell to China. China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

Nicolas Baratte

Just Listen to Jensen (And Lisa): TSMC, Intel, Samsung

Samsung allegedly secures 2nm customers. AMD claims TSMC has the only 2nm. Competition at 2nm is over, chips rolling out. Intel, Samsung face...

Nicolas Baratte

Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers

Cadence Design Systems, Inc. reported its financial results for the third quarter of 2024, recording impressive performance across various aspects...

Baptista Research

Earnings: NXPI, CDNS, TXN, SLAB, Alphawave, TSEM, KLAC, SK Hynix, MXL, STM, ASMI, VRT, UCTT

This is going to be a big week, so I’ll be as brief as I can while getting everything in one place. Let’s start with Automotive, which is my...

Fabricated Knowledge

Cadence Design Systems: Increasing Demand for 3D-IC Technology & Recurring Revenue Growth Makes This A 'Buy'? - Major Drivers

Cadence Design Systems, Inc. reported strong results and exceeded expectations for their second quarter of 2024, with broad-based momentum seen...

Baptista Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

President Trump “orders US Chip Software Suppliers to Stop Selling to China”

US could restrict US chip design software vendors to sell to China. ​China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

Nicolas Baratte

Just Listen to Jensen (And Lisa): TSMC, Intel, Samsung

​Samsung allegedly secures 2nm customers. AMD claims TSMC has the only 2nm. Competition at 2nm is over, chips rolling out. Intel, Samsung face...

Nicolas Baratte

Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers

Cadence Design Systems, Inc. reported its financial results for the third quarter of 2024, recording impressive performance across various aspects...

Baptista Research

Earnings: NXPI, CDNS, TXN, SLAB, Alphawave, TSEM, KLAC, SK Hynix, MXL, STM, ASMI, VRT, UCTT

This is going to be a big week, so I’ll be as brief as I can while getting everything in one place. Let’s start with Automotive, which is my...

Fabricated Knowledge

Cadence Design Systems: Increasing Demand for 3D-IC Technology & Recurring Revenue Growth Makes This A 'Buy'? - Major Drivers

Cadence Design Systems, Inc. reported strong results and exceeded expectations for their second quarter of 2024, with broad-based momentum seen...

Baptista Research

US could restrict US chip design software vendors to sell to China. China represents 11% of Cadence and Synopsys revenues. Leading Chinese...

Samsung allegedly secures 2nm customers. AMD claims TSMC has the only 2nm. Competition at 2nm is over, chips rolling out. Intel, Samsung face...