{"id":466518,"date":"2022-06-22T14:42:00","date_gmt":"2022-06-22T11:42:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/these-software-companies-are-unsung-winners-in-the-semiconductor-industry\/"},"modified":"2022-06-22T14:42:00","modified_gmt":"2022-06-22T11:42:00","slug":"these-software-companies-are-unsung-winners-in-the-semiconductor-industry","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/these-software-companies-are-unsung-winners-in-the-semiconductor-industry\/","title":{"rendered":"#: These software companies are unsung winners in the semiconductor industry"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ced9fcf64e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ced9fcf64e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/these-software-companies-are-unsung-winners-in-the-semiconductor-industry\/#%E2%80%9C_These_software_companies_are_unsung_winners_in_the_semiconductor_industry%E2%80%9D\" >&#8220;: These software companies are unsung winners in the semiconductor industry&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/these-software-companies-are-unsung-winners-in-the-semiconductor-industry\/#Electronic_Design_Automation_or_EDA_software_is_critical_in_the_semiconductor_industry_according_to_a_JP_Morgan_analyst\" >Electronic Design Automation, or EDA, software is critical in the semiconductor industry, according to a J.P. Morgan analyst.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/these-software-companies-are-unsung-winners-in-the-semiconductor-industry\/#James_Rogers\" >James Rogers<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_These_software_companies_are_unsung_winners_in_the_semiconductor_industry%E2%80%9D\"><\/span>&#8220;: These software companies are unsung winners in the semiconductor industry&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Electronic_Design_Automation_or_EDA_software_is_critical_in_the_semiconductor_industry_according_to_a_JP_Morgan_analyst\"><\/span>\n  Electronic Design Automation, or EDA, software is critical in the semiconductor industry, according to a J.P. Morgan analyst.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000969699\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000969699\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Mention semiconductors and chip giants such as Intel Corp., Advanced Micro Devices Inc. and NVIDIA Corp. spring to mind, but there are other, less high-profile companies, operating in the space that deserve attention.<\/p>\n<p> The pandemic has kept semiconductors firmly in the spotlight as a host of industries, from consumer <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to the automotive sector, wrestle with chip shortages. Software companies Synopsys Inc.<br \/>\n        SNPS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208349984\/composite\" class=\"positive\">+2.04%<\/bg-quote><br \/>\n       and Cadence Design Systems Inc.<br \/>\n        CDNS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207095682\/composite\" class=\"positive\">+3.53%<\/bg-quote><br \/>\n       may not be household names but are quietly playing an extremely important role in the broader semiconductor industry.<\/p>\n<div class=\"paywall\">\n       Synopsys and Cadence build Electronic Design Automation, or EDA, software, a crucial tool for chip design engineers. In a recent note, J.P. Morgan analyst Harlan Sur described chip design software as a critical, but often overlooked, part of the semiconductor value chain. Companies like Synopsys and Cadence own more than 70% of the chip design software market, he explained, noting that chip design is tied to semiconductor research and development budgets, which don\u2019t get cut in downturns.<\/p>\n<p>\u201cThese companies have historically grown their revenues even in times of semi cycle downturns,\u201d Sur wrote.<\/p>\n<p>Sur pointed out that over the past 11 years, which spans three semiconductor down cycles and three years of semiconductor revenue declines, EDA revenues, and therefore Synopsys and Cadence revenues, have grown every year.<\/p>\n<p><strong>See Now<\/strong>: Two ways the semiconductor shortage may play out<\/p>\n<p>Last month, fueled by fiscal second quarter revenue and earnings that topped analysts\u2019 expectations, Synopsys raised its full-year guidance. In April Cadence also raised its financial forecast for the year, boosted by better-than-expected performance in its fiscal first quarter.<\/p>\n<p>Chip design activity remains strong, thanks to complex next-generation chips from the likes of Intel Corp.<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"positive\">+2.06%<\/bg-quote><span>,<\/span><br \/>\n       Advanced Micro Devices Inc.<br \/>\n        AMD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208144392\/composite\" class=\"positive\">+2.72%<\/bg-quote><span>,<\/span><br \/>\n       NVIDIA Corp.<br \/>\n        NVDA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200467500\/composite\" class=\"positive\">+4.32%<\/bg-quote><span>,<\/span><br \/>\n       Broadcom Inc.<br \/>\n        AVGO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200646538\/composite\" class=\"positive\">+1.86%<\/bg-quote><br \/>\n       and Marvell Technology Inc.<br \/>\n        MRVL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200053236\/composite\" class=\"positive\">+2.15%<\/bg-quote><span>,<\/span><br \/>\n       according to J.P. Morgan\u2019s Sur.<\/p>\n<p>The adoption of custom chip designs by cloud giants Alphabet Inc.<br \/>\n        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"positive\">+4.11%<\/bg-quote><\/p>\n<p>        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"positive\">+3.85%<\/bg-quote><span>,<\/span><br \/>\n       Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"positive\">+2.32%<\/bg-quote><span>,<\/span><br \/>\n       Meta Platforms Inc.\u2019s<br \/>\n        META,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"negative\">-4.09%<\/bg-quote><br \/>\n       <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a> and Microsoft Corp.<br \/>\n        MSFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207732364\/composite\" class=\"positive\">+2.46%<\/bg-quote><span>,<\/span><br \/>\n       as well as the likes of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le Inc.<br \/>\n        AAPL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202934861\/composite\" class=\"positive\">+3.28%<\/bg-quote><span>,<\/span><br \/>\n       Juniper Networks Inc.<br \/>\n        JNPR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207361368\/composite\" class=\"positive\">+2.75%<\/bg-quote><span>,<\/span><br \/>\n       Cisco Systems Inc.<br \/>\n        CSCO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209509471\/composite\" class=\"positive\">+1.73%<\/bg-quote><br \/>\n       and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Motors Co.<br \/>\n        GM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205226835\/composite\" class=\"positive\">+2.38%<\/bg-quote><span>,<\/span><br \/>\n       is also driving an increase in the number of chip engineers, Sur wrote. These companies have a need for EDA chip software tools, he added.<\/p>\n<p>Set against this backdrop, J.P. Morgan continues to see a 10% to 15% revenue compound annual growth rate (CAGR) for Synopsys and Cadence, 80% to 90% gross margins, as well as a recurring revenue profile of 80% to more than 90%. \u201cWe believe EDA remains a very attractive part of the overall semiconductor value chain,\u201d Sur wrote.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>FactSet data show Synopsys and Cadence have returned 14.4% and 12.8%, respectively, over the past year, compared with the S&amp;P 500 index\u2019s<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+2.45%<\/bg-quote><br \/>\n       decline of 11.75% over the same period. Both companies\u2019 had record closes on Dec. 27, 2021, with Synopsys\u2019 stock closing that day at $375.59 and Cadence shares closing at $191.65.<\/p>\n<p><strong>See Now<\/strong>: Synopsys, Juniper Networks Create New Co. to Provide Silicon Photonics Platform<\/p>\n<p>In April Synopsys also announced a deal with Juniper to form a new, separate company focused on open silicon photonics, which will provide technology for the telecom, healthcare, data communications, high performance computing, artificial intelligence, optical networking and light detection and ranging (LiDAR, or remote sensing) industries.<\/p>\n<p>Of 14 analysts surveyed by FactSet, 13 have a buy or overweight rating on Synopsys and one rates the company as underweight. Of 15 analysts surveyed by FactSet, nine have a buy or overweight rating on Cadence, five have a hold rating, and one has an underweight rating.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"James Rogers\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/james-rogers\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/jamesjrogers\",\"text\":\"@jamesjrogers\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:james.rogers@marketwatch.com\",\"text\":\"james.rogers@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"James_Rogers\"><\/span>James Rogers<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"271_MW\" author-name=\"James Rogers\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fthese-software-companies-are-unsung-winners-in-the-semiconductor-industry-11655837237%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7ECB-E38A2A872307%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: These software companies are unsung winners in the semiconductor industry&#8221; Electronic Design Automation, or EDA, software is critical in the semiconductor industry, according to a J.P. Morgan analyst. Mention semiconductors and chip giants such as Intel Corp., Advanced Micro Devices Inc. and NVIDIA Corp. spring to mind, but there are other, less high-profile companies,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":466519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-530010\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-466518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/466518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=466518"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/466518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/466519"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=466518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=466518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=466518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}