Jim Cramer Notes Cadence "Blew Away the Numbers With a Tremendous Quarter"

Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the stocks Jim Cramer recently talked about. During the episode, Cramer mentioned the stock and called its quarter “tremendous.” He commented:

“Not even the incredible earnings news from Cadence Design Systems, also a fave of the show, and Celestica could help things. Cadence, a good partner of NVIDIA, blew away the numbers with a tremendous quarter. But who cares? I mean, we knew their business was great. Same with Celestica, which, along with Sanmina and FLEX LNG, belong in an elite camp of contract manufacturers devoted largely to tech. They have more than their fair share of orders. It’s a great time to be in that line of work, as we know, when we had FLEX on recently, after their amazing quarter.”

Cadence Design Systems (NASDAQ:CDNS) provides software, hardware, and services for chip design, verification, and system analysis. The company’s offerings include platforms for simulation, prototyping, physical implementation, and semiconductor IP. Rothschild & Co Wealth Management stated the following regarding Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q1 2025 investor letter:

“In the first quarter we made two new investments, building positions in semiconductor design software provider Cadence Design Systems, Inc. (NASDAQ:CDNS) and leading aerospace company General Electric Aerospace. No divestments were made, leaving the portfolio with 25 ownership stakes.

Cadence, alongside its peer Synopsis, is the leading provider of software used to design semiconductor chips, also known as electronic design automation (EDA) software. Together, they control over two thirds of their target market. EDA solutions are absolutely mission critical to the semiconductor industry – particularly as chip complexity increases further – yet they only account for a small share of customer spend. This, coupled with an increased focus on value based pricing, positions Cadence well for further sales growth in the double digits and continued meaningful margin improvements. What’s more, the majority of sales are delivered via recurring subscriptions, thus providing strong visibility on future revenues, its notoriously volatile end market notwithstanding. The recent pullback allowed us to build a position in a business with durable double digit growth at just over 30x one year forward earnings.”

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Disclosure: None. This article is originally published at Insider Monkey.