A slower-than-expected chip industry recovery has a cascading impact on firms like Cadence, which makes software tools and hardware that help produce blueprints for chips before they are mass manufactured.
The company's costs have also risen as it has had to invest into integrating generative AI capabilities into its own software tools. The company's costs rose 13.8 per cent in the third quarter ended Sept. 30. The company forecast fourth-quarter revenue in the range of about $1.04 billion to $1.08 billion, the mid-point of which fell below estimates of $1.07 billion.
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