The market has 'completely missed' this critical AI chip stock, says fund manager

  • 📰 CNBC
  • ⏱ Reading Time:
  • 23 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 36%
  • Publisher: 72%

Cadence Design Systems Inc News

Taiwan Semiconductor Manufacturing Co Ltd,Globalfoundries Inc,Global Unichip Corp

The stock boasts gross margins of nearly 90% and over the past decade, the company's pre-tax net profit margin has also risen to more than 30%.

Cadence Design Systems , a U.S. company that provides electronic design software to chip makers, has been "completely missed" by investors, according to Clare Pleydell-Bouverie, fund manager at Liontrust. The technology investor explained that Cadence is part of a rare duopoly with only one competitor, Synopsys . Liontrust's Global Technology Fund , with $265 million in assets, is invested in both stocks with around 3.3% allocated to each as of April 30.

12% this year and have risen 25% over the past 12 months — although this growth is much more muted than many other chip-related stocks. "When we think about the long term, we think about what this step up and product innovation from Cadence is actually going to achieve if we're going to see chips five times the size of Blackwell come to market," she said, referring to Nvidia 's latest and most powerful AI chip .

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines