Cadence raises midpoint of 2024 profit forecast on robust demand from chip designers
Corrects headline to say company raised midpoint of annual profit forecast, not range of profit forecast for fourth quarter
Oct 28 (Reuters) -Cadence Design Systems CDNS.O raised the midpoint of its annual profit forecast on Monday, betting on the boom in generative AI to drive demand for its software used to design complex chips that power those systems, sending its shares up 6.4% in extended trading.
The company, which supplies both software and specialized computer servers to leading AI-chip designer Nvidia NVDA.O and Apple AAPL.O, among others, raised the midpoint of its adjusted annual profit forecast to $5.90 per share, versus the prior $5.87 per share for 2024.
Cadence's software helps automate parts of the chip design process, while allowing firms to sketch the placements of billions of transistors as they look to develop the fastest, most powerful semiconductors that act as the brains of AI systems.
The company reported a close to 20% rise in revenue for the September quarter to $1.22 billion- its biggest jump in at least six quarters. This compares to estimates of $1.18 billion, according to data compiled by LSEG.
Cadence's revenue could also benefit from the new generation of its Palladium supercomputer, that Nimish Modi, senior vice president of strategy and new ventures had said in April, would go on sale in the third quarter, with sales ramping in the fourth quarter.
The company's revenue growth is deeply tied to semiconductor firms' research and development expenditure, which has remained resilient in the face of macroeconomic pressures and is also rising, Berenberg analysts said earlier in October.
Cadence expects full-year adjusted earnings in a range of $5.87 to $5.93 per share, versus its prior forecast in a range of $5.77 to $5.97.
Cadence also narrowed the range for its annual revenue forecast for 2024. It now expects revenue in a range of $4.61 billion to $4.65 billion, compared to its earlier forecast of $4.60 billion to $4.66 billion.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
