Cadence CEO Says AI Will Boost Chip-Design Demand for 5 to 10 Years
Updated
Updated · CNBC · Aug 18
Cadence CEO Says AI Will Boost Chip-Design Demand for 5 to 10 Years
2 articles · Updated · CNBC · Aug 18
Summary
Cadence expects AI to expand, not erode, its chip-design software business, with CEO Anirudh Devgan saying demand should keep rising for the next five to 10 years.
200 billion-transistor chips at 3 nanometers still require Cadence's physics- and math-heavy core tools, he said, while AI helps customers test more design options and optimize performance and power use.
Shares are down 11% over the past year despite a July earnings beat, as investors have sold software names on fears that AI could displace traditional vendors.
Nvidia and Intel are among Cadence's partners, and Devgan said growth should widen as more companies build custom silicon for AI systems.
Physical AI could open a larger market still, he said, pointing to autonomous vehicles, drones and robots as electronics in cars are projected to rise 10x.
With a massive 2025 export fine, can Cadence's ambitious physical AI dreams outpace its growing geopolitical and regulatory hurdles?
If AI is truly a turbocharger for Cadence, could future autonomous AI eventually replace the very engineering engine it currently enhances?
As chips reach 200 billion transistors, will the severe shortage of skilled engineers bottleneck the AI revolution before humanoid robots hit the market?