cd
Cadence Design Systems
CDNS
NASDAQ $326.54
Does Cadence Design Systems have pricing power in its industry?
Pricing is underpinned by mission‑criticality, scarce alternatives, and value‑based selling tied to time‑to‑market and PPA outcomes.
Gross margins are structurally high (cost of product and maintenance ~10 percent of related revenue in 2024), and AI‑enhanced products (Cerebrus, Verisium SimAI, Allegro X AI) deliver measurable productivity, supporting premium pricing.
Hardware adds large, lumpy but high‑value deals; IP for HBM4, UCIe and SerDes at bleeding‑edge nodes broadens monetization. Risks: large enterprise agreements temper list‑price optics; government scrutiny and China sensitivities can cap certain price avenues.
Overall pricing power remains strong and likely to expand as AI agents and 3D‑IC workflows proliferate.
Read the full report on Cadence Design Systems and explore the other sections
Overview of Cadence Design Systems
Does Cadence Design Systems have a strong competitive moat?
Does Cadence Design Systems have pricing power in its industry?
How predictable is Cadence Design Systems's business?
Is Cadence Design Systems financially strong?
How effective is Cadence Design Systems's capital allocation strategy?
Does Cadence Design Systems have high-quality management?
What is the fair value of Cadence Design Systems stock?