(Reuters) – Cadence Design Systems Inc on Monday raised its full-year revenue forecast slightly above Wall Street estimates, as a surge in artificial intelligence (AI) innovation fueled demand for custom semiconductor design.
Demand for the software used to design chips has risen even amid a cyclical downturn for the industry as chipmakers and tech giants like Alphabet and Apple rush to create their own semiconductors needed for AI processing.
Chip designers such as Nvidia, Arm and Advanced Micro Devices also use Cadence’s design tools to develop semiconductors used in handheld devices and servers that process data for AI.
Cadence forecast full-year revenue between $4.05 billion and $4.09 billion, largely above analysts’ average estimate of $4.06 billion, according to Refinitiv data. The company’s earlier estimate was for $4.03 billion to $4.07 billion.
Revenue stood at $976.6 million for the quarter ended June 30, above estimates of $974.9 million.
It expects adjusted earnings per share for 2023 between $5.05 and $5.11, beating expectations of $5.03 per share.
The San Jose, California-based company’s shares fell about 4% in after-market trading.
(Reporting by Tanya Jain and Akash Sriram in Bengaluru; Editing by Devika Syamnath)
