Cadence Design Systems, Inc. CDNS recently rolled out Clarity 3D Solver, marking its foray into the 3D modeling software market.
The latest solution utilizes distributed multiprocessing technology to address complex electromagnetic (EM) challenges. This consequently enables developers to design robust 3D models on connectors, PCBs, chips, packages and cables, among other platforms.
We believe Cadence’s 3D modeling initiatives will complement its strength in core electronic design automation (EDA) software domain.
Coming to price performance, shares of Cadence have returned 76.3% in the past year, substantially outperforming its industry’s 29.7% rally.
Features & Benefits in Detail
The advanced architecture of Cadence Clarity 3D Solver requires lower-memory capacity. This feature makes it cost effective to run on a multitude of CPUs for facilitating on-premise and cloud-based distributed computing.
The solution can read and interpret design data from IC packages and standard chips, among other platforms that simplify modeling processes a great deal.
Additionally, the latest solution can be integrated with the company’s Allegro, SiP Layout and Virtuoso implementation platforms to improve efficiency.
In particular, the developers can use Cadence Sigrity 3D Workbench together with Clarity 3D Solver to combine mechanical structures with system design. This electrical-mechanical interconnect architecture enables developers to work with a single model.
Cadence Clarity 3D Solver offers “gold-standard accuracy, 10X faster simulation performanceand unlimited capacity” over traditional field solver technology.
The robust features and integration options reduce the time required to run simulations. This enables semiconductor companies to cut short design re-spins and achieve high throughput.
Clarity 3D Solver technology can be utilized by developers to design robust applications involving complex 5G and 112G communication networks, advanced driver assistance systems (“ADAS”), high-performance computing (“HPC”) and Internet of Things (“IoT”).
Analyzing Market Opportunities
Increasing adoption of CAD software, primarily in the automotive business, and growing clout of additive manufacturing are fueling growth of the 3D modeling software industry.
Per latest GrandViewResearch data, the 3D CAD software market is expected to witness a CAGR of approximately 6% between 2019 and 2025. The report also stated that the market hit $8.66 billion in 2018.
Key trends including higher spend on IT infrastructure and rapid adoption of cloud software, also enhance the growth prospects of Cadence’s latest solution.
Notable semiconductor companies including Teradyne and HiSilicon are looking forward to utilize the solution, which is expected to aid Cadence’s top-line growth.
Cadence has carved a new System Analysis Group to focus exclusively on system analysis and design. Given abundant market prospects and favorable IT trends, we believe that the company’s penetration into the 3D modeling market is a smart move.
Moreover, the fact that Clarity 3D Solver can be integrated with Cadence’s implementation platforms to enhance performance provides leverage to its 3D modeling goals.
Zacks Rank & Other Key Picks
Currently, Cadence sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the same industry include SS&C Technologies Holdings, Inc. SSNC, Synopsys, Inc. SNPS and Pegasystems Inc. PEGA, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for SS&C Technologies, Synopsys and Pegasystems is pegged at 12%, 10% and 8%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
SS&C Technologies Holdings, Inc. (SSNC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research