While retail investors pile into crowded trades like NVIDIA (NASDAQ: NVDA) or TSMC (NYSE: TSM), sophisticated capital is looking upstream. The real bottleneck of the artificial intelligence (AI) revolution is not just manufacturing capacity; it is also design complexity. The AI revolution runs on silicon, but that silicon can’t reach production without the software that maps designs into manufacturable, verified chips.
This dynamic has transformed Cadence Design Systems (NASDAQ: CDNS) from a legacy software utility into a critical computational twin platform.
