Bank of America believes that in terms of providing stable returns, Cadence Design Systems is far ahead of artificial intelligence peers.
Analyst Vivek Arya said to customers on Wednesday that the electronic system design company is a "high -quality compound company" and "has a good leverage for artificial intelligence."Cadence is developed to design software, hardware and intellectual property for design chips and printing circuit boards.Pune Stock
Arya reiterated its buying rating for the company and raised its target stock price by $ 20 to $ 350, which means that the company’s stock price has nearly 20% of potential rising space in the next year.The company’s stock price rose nearly 6%this year.
Arya’s target stock price is bullish, and it is based on the company’s predictions that will accelerate growth in the second half of this year and 2025 with the recovery of the reservation momentum.He pointed out that the company’s stock has the potential to restore its historical premium compared to the PHLX semiconductor sector (or SOX). The latter is a capital -based weighted index.EssenceKanpur Wealth Management
Arya said in a description to customers on Wednesday: "Like most long -term composite companies, the real value of CDNS can often be better reflected when the market becomes defense.The rate reaches 33%, leading 300 basis points in the leading rival SNPS, ranking the top five within our attention and 25%ahead of the SOX index.The performance of CDNS shares is better than the SOX index each time. "
Arya believes that the company has "the best profitability and opportunities of the same kind" and can obtain market share by clearly focusing on organic growth and avoiding large -scale mergers and acquisitions.
Arya said that artificial intelligence will also promote the growth of share. He expects that Cadence will achieve long -term sustainable growth of double digits, which is closely related to the three stages of emerging technologies: complex chip design, incremental function monetization and expansion of new expansion new expansion.market.Jaipur Wealth Management
He said that although the company’s sales were not ascended as the data centers and artificial intelligence sales of NVIDIA, AMD and Samsung, the company’s sales soared, management expects that as artificial intelligence functions are adopted by new industries such as biology and automobiles, it is timeThe company’s growth will enter a more sustainable stage.Arya predicts that Cadence’s chip and system professional technology will benefit from the construction of artificial intelligence data centers in the next three to five years.
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