
As of the Feb. 20 close, shares of semiconductor staple Cadence Design Systems (NASDAQ: CDNS) have fallen significantly in 2025. The stock’s 10% drop is largely due to its Q4 earnings release that revealed disappointing guidance for 2025. Still, the company remains a bedrock piece of one of the most important parts of the market and economy: advanced chips.
In my opinion, this makes it a strong play going forward despite the drop. The company sees hundreds of billions in industry growth that it can benefit from and is expected to just come from data centers.