Analog Devices vs Cadence

This page compares Analog Devices and Cadence Design Systems, outlining their business models, financial performance, and market context in a neutral, accessible manner. Educational content, not financial advice.

This page compares Analog Devices and Cadence Design Systems, outlining their business models, financial performance, and market context in a neutral, accessible manner. Educational content, not finan...

Comparison Snapshot

Key Financial Metrics

ADI

Metric

CDNS

$148.55B

Market Cap

$87.65B

-7.04%

Potential Profit

20.59%

Buy

Analyst Rating

Buy

Why It's Moving

Analyst Bullishness Fuels ADI Momentum Ahead of Q1 Earnings

Oppenheimer boosted its price target to $350 from $265, maintaining Outperform amid AI strength and cyclical recovery potential.
Susquehanna lifted target to $360 from $350 with a Positive rating, citing in-line Q4 results, steadying upcycle, and broadening AI infrastructure demand.
BofA raised target to $350 from $320 on Buy, expecting modest Q4 beats and Q1 raises led by industrial semis and robust AI businesses.

Sentiment:

🐃Bullish

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Recent trading showed a strong +2.23% gain to $313.84, signaling investor confidence despite modest weekly moves of 0.3%.
Analysts project Q4 EPS of $1.91 and revenue of $1.42B, up 1.06% and 5.02% year-over-year, highlighting growth in AI-driven design software.
Institutional shifts continue, with some funds trimming stakes while others boost holdings, underscoring Cadence's key position in the semiconductor ecosystem.

Sentiment:

🐃Bullish

Analyst Bullishness Fuels ADI Momentum Ahead of Q1 Earnings

Oppenheimer boosted its price target to $350 from $265, maintaining Outperform amid AI strength and cyclical recovery potential.
Susquehanna lifted target to $360 from $350 with a Positive rating, citing in-line Q4 results, steadying upcycle, and broadening AI infrastructure demand.
BofA raised target to $350 from $320 on Buy, expecting modest Q4 beats and Q1 raises led by industrial semis and robust AI businesses.

Sentiment:

🐃Bullish

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Recent trading showed a strong +2.23% gain to $313.84, signaling investor confidence despite modest weekly moves of 0.3%.
Analysts project Q4 EPS of $1.91 and revenue of $1.42B, up 1.06% and 5.02% year-over-year, highlighting growth in AI-driven design software.
Institutional shifts continue, with some funds trimming stakes while others boost holdings, underscoring Cadence's key position in the semiconductor ecosystem.

Sentiment:

🐃Bullish

Investment Analysis

Analog Devices

ADI

Pros

Analog Devices has a diverse portfolio of products including data converters, power management ICs, and MEMS technology serving multiple markets such as automotive, industrial, and communications.
The company has a strong market presence with a large market capitalization around $114 billion and pays a dividend, supporting shareholder returns.
Analog Devices operates globally with sales channels including direct sales, distributors, and independent representatives, providing broad market access.

Considerations

The stock shows relatively modest recent price appreciation compared to some peers, indicating slower growth momentum.
Analog Devices trades at a high P/E ratio (~60), which may reflect elevated valuation risks amid market or economic uncertainty.
The business faces cyclicality risks inherent to the semiconductor industry, with exposed segments tied to industrial and automotive markets sensitive to economic cycles.

Cadence

CDNS

Pros

Cadence Design Systems reported a record backlog of $7 billion and raised its 2025 revenue growth outlook to approximately 14% year-over-year.
The company holds a dominant competitive position in electronic design automation (EDA) software, crucial for chip verification and design.
Cadence has strong analyst support with an average 'Buy' rating and upward price targets suggesting around 13-21% potential stock price appreciation.

Considerations

Cadence has a high price-to-earnings ratio above 80, indicating premium valuation that may limit downside risk tolerance.
Its revenue growth and backlog are exposed to semiconductor industry cyclicality, which can affect demand for EDA tools.
The stock's beta near 1 implies sensitivity to broader equity market fluctuations, reflecting moderate market risk exposure.

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About The Companies

Analog Devices (ADI)

Analog Devices, Inc. (ADI) is a US-based designer and supplier of analogue, mixed‑signal and digital signal processing semiconductors used to convert, condition and interpret real‑world signals. Investors should know ADI serves industrial automation, automotive, communications, healthcare and instrumentation markets with products such as data converters, amplifiers, power management and sensor interfaces. The company benefits from deep engineering expertise, recurring revenue streams and a largely fab‑light model supplemented by strategic manufacturing partnerships and acquisitions. At a market capitalisation of about $121.2bn, ADI combines stable end‑market exposure with selective growth initiatives. Key risks include the cyclical nature of the semiconductor industry, competition from other analogue players, supply‑chain disruption and sensitivity to macro demand. Valuation, product cadence and customer traction matter for future returns. This is general, educational information and not personal financial advice; suitability depends on your circumstances and values can rise and fall.

Cadence (CDNS)

Cadence Design Systems (CDNS) is a leading provider of electronic‑design automation (EDA) software and semiconductor IP used to design, verify and optimise chips and complex electronic systems. Investors should know Cadence benefits from secular trends — rising chip complexity, AI acceleration and growing demand for custom silicon — which support steady software licence and subscription revenue. The company combines product sales, recurring licences, and professional services, and has a strong position with major semiconductor and systems companies. That said, Cadence’s business is sensitive to semiconductor industry cycles, capital spending patterns and long sales cycles for large design projects. Financial performance can fluctuate with macro conditions, and past performance is no guarantee of future returns. This summary is for educational purposes only and not personalised investment advice; consider your own situation and consult a financial professional before acting.

Analog Devices (ADI) Next Earnings Date

Analog Devices' next earnings date is February 18, 2026, when the company will release its Q1 fiscal 2026 financial results before market open. This follows the Q4 fiscal 2025 report issued on November 25, 2025. A conference call with executives is scheduled for 10:00 a.m. Eastern time that day.

Cadence (CDNS) Next Earnings Date

Cadence Design Systems is scheduled to report its next earnings on February 17, 2026, covering the fourth quarter and full fiscal year 2025. The company will conduct a conference call following the announcement to discuss financial results and forward guidance. Analysts are currently projecting earnings per share of approximately $1.90 for this reporting period. This earnings release represents the company's first major report following its strong Q3 2025 performance in October.

Analog Devices (ADI) Next Earnings Date

Analog Devices' next earnings date is February 18, 2026, when the company will release its Q1 fiscal 2026 financial results before market open. This follows the Q4 fiscal 2025 report issued on November 25, 2025. A conference call with executives is scheduled for 10:00 a.m. Eastern time that day.

Cadence (CDNS) Next Earnings Date

Cadence Design Systems is scheduled to report its next earnings on February 17, 2026, covering the fourth quarter and full fiscal year 2025. The company will conduct a conference call following the announcement to discuss financial results and forward guidance. Analysts are currently projecting earnings per share of approximately $1.90 for this reporting period. This earnings release represents the company's first major report following its strong Q3 2025 performance in October.

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Which Baskets Do They Appear In?

Microchips

The tiny components powering our digital world are creating massive investment opportunities. These carefully selected semiconductor stocks represent the companies building the foundation for AI, smart devices, and our technological future.

Published: May 24, 2025

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Comparison Snapshot

Why It's Moving

Analyst Bullishness Fuels ADI Momentum Ahead of Q1 Earnings

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.

Analyst Bullishness Fuels ADI Momentum Ahead of Q1 Earnings

Cadence Design Systems Powers Ahead, Outpacing Market Amid AI Chip Design Buzz.