This Chip Software Provider Witnessed A Whopping 3,400% Jump In Retail Chatter Over 24 Hours: Here’s Why

Cadence Design Systems Inc. (CDNS) President and CEO Anirudh Devgan emphasised that early bets on combining AI with tools for chip design, packaging, and system analysis have led to better-than-expected second-quarter (Q2) earnings.

"Our early investments delivering to our vision of unified EDA, IP, 3D-IC, PCB and system analysis are paying off,” said Devgan.

Cadence experienced a 3,400% explosion in Stocktwits user message count in the last 24 hours after the earnings. 

Retail sentiment around the stock improved to ‘neutral’ (52/100) from ‘bearish’ territory the previous day. Message volume reached a three-month high, jumping to ‘extremely high’ (85/100) from ‘normal’ levels in 24 hours. 

Cadence stock traded over 8% higher in Tuesday’s premarket.

A Stocktwits user lauded the earnings.

Another user expressed confidence in the company’s business.

Devgan added that the strong demand and deep customer ties have helped the company stay ahead as AI grows from powering data centers to enabling self-driving cars and advancing scientific research.

John Wall, the CFO of Cadence, said the One Big Beautiful Bill Act is likely to decrease the company’s federal tax payments for the remainder of fiscal 2025 by approximately $140 million.

The company has also reached an agreement with the Department of Justice and BIS (Bureau of Industry and Security), bringing closure to the previously disclosed investigations related to export violations to China between 2015 and 2021, which amounted to around $45 million over those six years. 

Under the terms of the settlement, Cadence will be making a payment of about $141 million in Q3.

Cadence’s Q2 revenue increased 20% year-on-year (YoY) to $1.275 billion, beating the analysts’ consensus estimate of $1.251 billion, as per Fiscal AI data. Adjusted earnings per share (EPS) of $1.65 also exceed the consensus estimate of $1.56.

The company has raised its 2025 revenue and adjusted EPS outlook to $5.21 billion to $5.27 billion and $6.85 to $6.95, respectively.

Cadence stock has gained 11% in 2025 and over 28% in the last 12 months.

Also See: India Dethrones China As Top Smartphone Shipper To US In Q2 As Apple’s Supply‑Chain Shift Gains Traction

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