Goldman Sachs Upgrades Cadence Design Systems to $470, Sees $3.7B EDA Revenue Opportunity by 2030

According to Goldman Sachs research released Monday, chip design software makers Cadence Design Systems and Synopsys are positioned to benefit from a structural shortage of design engineers in the semiconductor industry. Goldman upgraded its 12-month price target for Cadence (CDNS) to $470 from $410, representing 26% upside; the stock closed Friday at $384.17. The analysts noted that the shift toward custom AI silicon has intensified engineer shortages, creating an incremental revenue opportunity for EDA (electronic design automation) companies through Agentic AI, estimated at approximately $3.7 billion annually by 2030. "This is not reflected in Street estimates and may start to be evident as early as the second half of 2026," the research note stated.

Meanwhile, Taiwan Semiconductor Manufacturing Co. reported 67.9% year-on-year growth in June sales on Monday, with first-half 2026 revenue reaching 2.4 trillion new Taiwan dollars ($74.99 billion), up 35.6% from the same period in 2025.