Goldman Lifts Cadence to $470 as Chip Designer Shortage Opens $3.7 Billion EDA Opportunity
Updated
Updated · CNBC · Jul 13
Goldman Lifts Cadence to $470 as Chip Designer Shortage Opens $3.7 Billion EDA Opportunity
1 articles · Updated · CNBC · Jul 13
Summary
$470 is Goldman Sachs' new target for Cadence Design Systems, up from $410 and implying 26% upside from Friday's $384.17 close; it kept a $600 12-month target on Synopsys.
Goldman said a structural shortage of chip design engineers, worsened by the shift to custom AI silicon, could create about $3.7 billion a year in incremental EDA revenue by 2030.
The bank argued that upside is not yet reflected in consensus estimates and could start showing up as early as the second half of 2026, even as it warned on export restrictions, market-share losses and fewer custom chip designs.
Broader chip demand remains under scrutiny, but AI bulls pushed back last week and TSMC's June sales rose 67.9% year on year, with first-half revenue up 35.6% to NT$2.4 trillion.