Cadence Design Systems, Inc. CDNS and AST SpaceMobile, Inc. ASTS have partnered to accelerate the latter’s mission to link smartphones with high-speed satellite-beamed internet access. ASTS is using Cadence tools to build a resilient and highly accessible space-based cellular broadband network.

Cadence’s advanced tools, flows and IP portfolio were used for the AST5000 ASIC chip, which is a low-power customized architecture. This particular architecture forms the basis of AST SpaceMobile’s BlueBird program and is tailored to enable a 10x times processing bandwidth improvement on each satellite.

Cadence’s IP is designed to facilitate ideal power and performance adjustments to deliver efficient system designs according to the client’s specific requirements. It supports a wide industrial temperature range. For AST5000 ASIC, the Cadence design enablement team was able to achieve optimal power, performance and area to boost the functionality of the system-on-chip.

Cadence Design Systems, Inc. Price and Consensus

Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote

ASTS also leveraged Cadence’s Palladium verification solution for validating and refining the IP integration. This specific integration was able to tackle problems arising during pre-silicon development, thereby safeguarding the performance of the final design.

ASTS is transforming connectivity with direct-to-cell technology leveraging the first and only space-based cellular broadband network. AST SpaceMobile has successfully sent its first five Bluebird commercial satellites in low Earth orbits, marking a key advancement in developing a space-based mobile network infrastructure.

ASTS expects to support up to 10,000 MHz of processing bandwidth per satellite due to the new BlueBird satellite size and several planned ASICs. With data transmission speeds of up to 120 Mbps, the satellite broadband network will be able to facilitate voice calls, data and video applications for smartphones globally.

Strengthening Demand for CDNS Solutions Bodes Well

Cadence is well positioned for growth, driven by its expanding product portfolio and strong demand for products from existing and emerging markets.

The company continues to invest heavily in verification and digital design products. This is helping it to launch products that address the ever-growing needs of electronics and semiconductor companies. Its verification business has been gaining traction due to the rising complexity of system verification and software bring-up.

In April 2024, the company unveiled the latest Palladium Z3 Emulation and Protium X3 FPGA Prototyping systems. This is an advanced digital twin platform that is aimed at addressing the growing complexity of system and semiconductor design. The latest systems offer more than double the capacity and a significant performance increase compared with Palladium Z2 and Protium X2 systems. Management added that palladium systems have already been deployed by a few customers and are endorsed by NVIDIA, Arm and AMD. Cadence noted that its latest hardware solutions are likely to witness solid demand, especially from AI, hyperscale and automotive companies.

CNDS also remains focused on embedding cutting-edge AI capabilities across its SDA, EDA and digital biology offerings. Secular trends like 5G, increasing usage of hyperscale computing and autonomous driving have been influencing design activity across semiconductor and systems companies. This is likely to open up more opportunities for its end-to-end EDA, IP and systems solutions.

Zacks Rank of CDNS & ASTS

At present CDNS carries a Zacks Rank #3 (Hold) while ASTS has a Zacks Rank #2 (Buy).

Stocks to Consider

Two stocks worth considering in the broader technology space are Plexus Corp., Inc. PLXS and InterDigital, Inc. IDCC, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for PLXS’ fiscal 2025 EPS is pegged at $6.79, which remained unchanged in the past seven days. PLXS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 10.3%. Its shares have risen 63.8% in the past year.

The Zacks Consensus Estimate for IDCC’s 2024 earnings is pegged at $15.22 per share, which rose 12.5% in the past seven days. IDCC’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 163.7%. Its shares have surged 93.9% in the past year.

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