Market Overview - The Nasdaq dropped 1.5% on Friday, sending it back under its 21-day moving average [5] - Long-term investors should focus on the 50-day and 200-day moving averages for the S&P 500, Nasdaq, and favorite stocks as key buying levels [6] - Stocks are expected to experience a recalibration in early 2025 following a massive two-year rally [16] - Corrections and pullbacks are regular events that investors can take advantage of [17] - The next stock market downturn should be bought up quickly given the outlook for earnings growth in 2025 and 2026 [19] Cadence Design Systems (CDNS) - Cadence is projected to grow its revenue by 13% in 2024 and 2025, adding over $1 billion to the top line between FY23 and FY25 [2] - The company's adjusted EPS is expected to grow by 15% and 16% in 2024 and 2025, respectively [2] - Cadence's modeling and computational software are essential for the lifecycle of semiconductors and other vital technologies [8] - Nvidia and other giants depend on Cadence's simulation technology for their cutting-edge semiconductors [10] - Cadence averaged 14% revenue growth over the trailing five years [10] - The company's 2025 and 2026 earnings estimates faded this year, leading to underperformance [10] - Cadence's stock has soared roughly 5,000% in the last 15 years, outperforming the Tech sector and Computer-Software industry [21] - CDNS underperformed the Tech sector and the market in 2024, setting up a potentially attractive entry point for investors in 2025 [22] - Cadence trades at a 25% discount to its highs in P/E terms while Tech is 5% below its peaks [23] - The growing complexity of semiconductors for AI and hyperscale computing has transformed Cadence into an invaluable partner for many chip companies [25] - Cadence was range-bound in 2024, trading 7% below its highs and around its February 2024 levels [26] Arista Networks (ANET) - Arista Networks is a client-to-cloud networking powerhouse, focusing on large AI, data center, campus, and routing environments [3] - The AI revolution is a significant driver for ANET's growth [3] - ANET's networking infrastructure has expanded rapidly over the past decade alongside cloud computing and the big data explosion [3] - Arista Networks trades near its all-time highs in terms of forward earnings, making it due for a recalibration [4] - Any slide down to ANET's 50-day or 200-day moving average would mark a buying opportunity [4] - Arista Networks boasts over 8,000 cloud customers worldwide, including some Magnificent 7 tech companies [11] - Microsoft and Meta are two of ANET's largest clients, with "cloud titans" accounting for 46% of its revenue [11] - Microsoft and Meta rely heavily on Arista Networks for their big data growth and AI dreams [12] - ANET grew its revenue from $361 million in 2013 to $5.86 billion last year, averaging 37% sales growth over the past three years [13] - Arista Networks is projected to boost its sales by 19% in FY24 and 17% in 2025 to reach $8.15 billion [13] - ANET's price per share became more attainable to many investors after a 4-for-1 stock split in early December [15] - Arista Networks has an impressive balance sheet, with $7.4 billion in cash and equivalents against $3.6 billion in total liabilities and zero debt [27] - ANET stock has skyrocketed roughly 2,800% in the past 10 years, outperforming Meta and Microsoft [27] - ANET's Tech-crushing performance includes a 92% run in 2024 [27] - Wall Street views ANET's growing relationship with Microsoft and Meta as a long-term vote of confidence [24] - 13 of the 19 brokerage recommendations for ANET are "Strong Buys" [24] - Arista Networks is projected to grow its adjusted earnings by 26% and 10% in FY24 and FY25, respectively, following 52% EPS expansion in FY23 [24] - ANET has topped quarterly estimates for five years in a row and holds a Zacks Rank 2 (Buy) [24]

Cadence Design Systems (CDNS) stock has gained 10% year to date. However, the stock has underperformed its industry and the broader technology sector. Within the same time frame, the sub-industry and the Zacks Computer and Technology sector have gained 22.5% and 35.3%, respectively. It has also lagged the S&P 500’s growth of 27.9%.Price PerformanceImage Source: Zacks Investment ResearchThis considerable underperformance in its stock price has caught the attention of investors, prompting questions about whet ...

Cadence Design Systems, Inc. (CDNS) recently joined forces with Rapidus Corporation to tackle some of the most pressing challenges in semiconductor design and manufacturing. The partnership aims to deliver artificial intelligence (AI)-driven reference design flows and a robust intellectual property (IP) portfolio to support Rapidus’ 2nm gate-all-around (GAA) process. The initiative also integrates the transformative potential of Rapidus’ backside power delivery network (BSPDN) technology.With rising design ...

Cadence Design Systems, Inc. (CDNS) and AST SpaceMobile, Inc. (ASTS) have partnered to accelerate the latter’s mission to link smartphones with high-speed satellite-beamed internet access. ASTS is using Cadence tools to build a resilient and highly accessible space-based cellular broadband network.Cadence’s advanced tools, flows and IP portfolio were used for the AST5000 ASIC chip, which is a low-power customized architecture. This particular architecture forms the basis of AST SpaceMobile’s BlueBird progra ...

It has been about a month since the last earnings report for Cadence Design Systems (CDNS) . Shares have added about 9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cadence due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Cadence's Q3 Earnings & Revenues Top Estim ...

Shares of Cadence Design Systems (CDNS) have risen 12.3% in the past month, compared with the sub-industry and the Zacks Computer and Technology sector’s returns of 4.7% and 3.4%, respectively. The S&P 500 Index has returned 3.2% in the same period.The stock has also outperformed its peers. In the past month, shares of Synopsys, Inc (SNPS) and ANSYS Inc (ANSS) have gained 5.9% and 3.6%, respectively, while Keysight Technologies, Inc (KEYS) has lost 2.8%. One-Month Price PerformanceImage Source: Zacks Invest ...

When thinking about innovative companies that are trying fervently to stay ahead of the competition, research and development (R&D) spending is a key indicator of this ethos. Often quoted as a percentage of revenue, R&D spending is a driving force for many companies, especially those in the technology sector. Without it, businesses will eventually render their products inadequate as the competition provides greater value to their customers. Strong R&D spending looks even better when combined with a company ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cadence Design Systems. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Have you evaluated the performance of Cadence Design Systems' (CDNS) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this maker of hardware and software products for validating chip designs, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In the current global economy, which is more interconnected than ever, a company's success in penetrating internati ...

Cadence Design Systems (NASDAQ: CDNS ) reported 3Q24 earnings on Monday, and the stock surged 7% on top and bottom line beat and increased full-year guidance. I'm initiating the stock with a buy for the longer-term investors and think the increased I'm a retired Wall Street PM specializing in TMT; my educational background is a bachelor's in Finance and Economics, and an MBA from Columbia, after which I directly began my career on Wall Street. Since kickstarting my career, I've spent over two decades in the ...