Cadence lifts full-year forecast, shares dip on short-term outlook

Cadence Design Systems Inc on Monday raised its full-year revenue forecast to slightly above Wall Street estimates, as a surge in artificial intelligence (AI) innovation fueled demand for custom semiconductor design.

Demand for the software used to design chips has risen even amid a cyclical downturn for the industry as chipmakers and tech giants such as Alphabet and Nvidia Corp rush to create their own semiconductors needed for AI processing.