CNBC’s Mad Money, hosted by the renowned Jim Cramer, recently featured a special episode spotlighting Cadence Design Systems and its president and CEO, Anirudh Devgan. For those in the know, Cadence is a powerhouse in the semiconductor industry, and Cramer didn’t hold back his enthusiasm, introducing Cadence as “the best semiconductor stock you’ve never heard of but should have.” The interview, filmed at an executive event in Santa Barbara, California, provided valuable insights into Cadence’s pivotal role in the tech world and the future of chip design.
Cadence CEO Anirudh Devgan interviewed by Jim Cramer on CNBC's Mad Money, discussing semiconductor industry trends and Cadence's role in chip design innovation.
Devgan expertly articulated Cadence’s crucial position at the heart of technological advancement. He explained to Cramer and the Mad Money audience how Cadence’s computational software is integral to the design of almost every chip in the world today. From the chips powering the automotive industry and cloud computing to those in everyday appliances like washing machines, Cadence software plays a vital role. He demystified complex subjects such as semiconductor technology, the impact of the CHIPS Act, and the intricacies of chiplet-based design, making them accessible to a broader audience. Devgan emphasized that Cadence’s reach extends beyond just semiconductor companies, noting that a significant 45% of their revenue comes from system companies who are increasingly engaging in chip design themselves.
“These chips are pretty complicated. They’re probably the most sophisticated things humans have ever built.”
Cramer, visibly impressed by Cadence’s performance, highlighted the company’s “unbelievable growth” and “extraordinary profitability.” In response, Devgan pointed to the strength of Cadence’s recurring revenue model, which allows for substantial investment in research and development. He proudly stated that Cadence invests approximately 35% of its revenue back into R&D. Cramer’s reaction underscored the significance of this commitment, exclaiming, “That’s the highest I have heard of anyone who’s ever come on the show!” This level of investment signals Cadence’s dedication to staying at the forefront of innovation in the rapidly evolving semiconductor landscape.
The interview on Cramer Mad Money served as a powerful endorsement of Cadence’s leadership and its critical role in the technology ecosystem. Jim Cramer’s enthusiastic reactions throughout the segment further emphasized the compelling story of Cadence as a key player in the semiconductor industry.
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