Cadence Design Systems Inc

Cadence makes the software that chip companies use to design semiconductors — think of it as the 'AutoCAD for chips'. Their tools simulate and verify that complex processors will work correctly before manufacturers spend millions building them. They also sell pre-designed building blocks (called IP) that chip designers can license instead of creating from scratch.

Cadence Design Systems is a $93.3B software company that builds AI-powered tools chip designers use to create and verify semiconductors [Yahoo Finance]. The company posted strong Q1 results, beating analyst expectations, and recently won a design contract with Aeva for 4D LiDAR processing chips used in autonomous vehicles and robotics [Yahoo Finance]. Revenue grew 14% year-over-year to $5.3B, and the company maintains exceptional margins (86% gross, 31% operating) with minimal debt [Yahoo Finance].

Financially robust with industry-leading margins and minimal debt risk.