Electronic design automation (EDA) company Cadence Design Systems (NASDAQ: CDNS) plays a vital role in the semiconductor industry. Access to advanced EDA software is non-negotiable for companies designing semiconductors. Adding to Cadence’s importance is the fact that it controls a very large portion of the EDA market. Analysts estimate that Cadence and Synopsys (NASDAQ: SNPS) each hold around 30% market share in this space.
Despite Cadence’s enviable position, the stock has delivered middling returns as of late. Over the past 52 weeks, the stock has returned between 5% and 10%.
