Cadence lifts annual revenue forecast on sustained AI chip-design boom

Cadence Design Systems raised its full-year revenue forecast on Monday, betting that sustained, heavy investment in specialized artificial intelligence processors will continue to drive demand for its chip-design tools.

Shares of the San Jose, California-based company ‌rose more than ⁠1% in ⁠extended trading.

Demand for Cadence’s electronic design automation (EDA) software and hardware has surged as chipmakers and tech giants like Google and Amazon design increasingly complex systems-on-a-chip (SoCs) and AI accelerators.