Shares of Cadence Design Systems (CDNS) shares climbed more than 12% on Tuesday to notch the top daily performance of any S&P 500 stock after the electronic design automation firm posted strong quarterly results and boosted its full-year guidance.

The provider of design software, hardware, 澳洲幸运5官方开奖结果体彩网:intellectual property (IP) and other solutions posted revenue of $1.215 billion for the third quarter of 2024, up around 19% year-over-year. Non-GAAP 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS), at $1.64, was up more than 30% from the year-ago period. Both figures came in ahead of consensus forecasts.

Cadence also lifted its revenue and non-GAAP earnings forecasts for the full year.

Q3 Highlights

Cadence specializes in integrated circuits and electronic systems to aid in design processes across industries including communications, automotive, defense, and industrial markets.

Robust demand for 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) design products underpinned Cadence's strong quarterly performance. In the earnings report, the company touted the productivity benefits of its Cadence.AI portfolio, which incorporates generative AI technology along with AI-driven big data analytics. Revenue from Cadence.AI nearly tripled year-over-year.

"Customers are achieving outstanding results with Cadence.AI, and I’m excited by its accelerating proliferation as AI rapidly becomes an integral part of the design workflow," said CEO Anirudh Devgan.

Analyst Reaction and Stock Performance

Following the strong financial results, analysts at Baird lifted their price target on Cadence Design stock to $340 from $332. Needham analysts, meanwhile, trimmed their price target to $315 from $320 but maintained their buy rating.

Cadence Design shares have been volatile so far in 2024. Tuesday's gains returned the stock to positive territory for the year.