Cadence Rolls Out DisplayPort 2.0 Compliant Verification IP
Cadence Design Systems, Inc. CDNS recently introduced Verification IP (VIP), which is compliant with DisplayPort 2.0 standard. It offers developers end-to-end capabilities to accelerate the functional verification processes of system-on-chip (SoC) designs for complex applications.
Cadence claims that it is the industry’s first VIP to support DisplayPort 2.0 verification environment.
Primarily, latest VIP facilitates high-quality SoC design with robust performance required to support applications involving machine learning, enterprise connectivity, automotive, gaming and mobile computing processes.
We believe expansion of Cadence Verification IP portfolio, which is a part of Cadence Verification Suite, with DisplayPort 2.0 compliant VIP bodes well.
Notably, shares of Cadence have returned 60.6% year to date, significantly outperforming the industry’s rally of 29.5%.
Key Features to Favor Adoption
The new offering enables seamless integration with testbenches at SoC, IP and other system levels, which accelerates verification closure.
Per the press release, the latest solution comprises “a configurable bus functional model (BFM), a protocol monitor and a library of integrated protocol checks to optimize verification predictability.”
Additionally, the DisplayPort 2.0 compatible VIP supports major verification languages including SystemVerilog, Verilog, VHDL, e, C, SystemC, and Vera. Moreover, the new solution is optimized for the company’s Xcelium Parallel Logic Simulation offering.
We believe the robust features of the latest VIP will drive adoption, primarily from semiconductor companies which are increasingly focusing on AI, 5G and ADAS chipset manufacturing.
In fact, Japan-based fabless semiconductor company, MegaChips, is eager to utilize the latest VIP as it is DisplayPort 2.0 compliant.
Strength in IP Portfolio Holds Promise
Cadence continues to invest heavily in verification and digital design products, which is helping it to launch products that address the ever-growing needs of electronics and semiconductor companies.
Moreover, Cadence Verification Suite, comprising the latest DisplayPort 2.0 compliant VIP, supports the company’s Intelligent System Design strategy, which ensures SoC design excellence.
The growing adoption of Cadence’s offerings is expected to strengthen the company’s presence in the Electronic Design Automation (EDA) market. Per ResearchAndMarkets data, the EDA tools market is forecast to hit $17.35 billion by 2024, compared with $9.76 billion in 2018 at a CAGR of 10.1%.
Further, the ongoing digital transformation across aerospace and medical verticals holds promise. Cadence’s association with Northrop Grumman, which is utilizing the company’s IP and EDA solutions, deserves a special mention in this regard.
Wrapping Up
We believe that the latest product rollouts in growth markets and customer wins are expected to bolster Cadence's financial performance.
However, increasing expenditure on portfolio expansion and product enhancement is likely to weigh on margins at least in the near term.
Zacks Rank & Key Picks
Currently, Cadence carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering in the broader sector are eGain Corporation EGAN, Rosetta Stone Inc. RST and j2 Global, Inc. JCOM, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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