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Cadence Unveils HBM4 IP Memory System Solution for AI & HPC Systems

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Cadence Design Systems, Inc. (CDNS - Free Report) recently launched an HBM4 memory IP solution, which delivers an impressive 12.8Gbps data rate. This latest innovation is designed to meet the escalating memory bandwidth requirements of cutting-edge system-on-chip (SoCs) aimed at powering the next wave of artificial intelligence (AI) training and high-performance computing (HPC) systems.

The new Cadence HBM4 IP significantly outperforms its predecessor, doubling the bandwidth achieved by previous-generation HBM3E products while fully complying with the JEDEC JESD270-4 specification. Featuring an integrated solution with both a PHY and a high-performance controller, it offers a complete, cutting-edge memory subsystem available for customer engagements.

What Does Cadence’s HBM4 IP Offer?

Cadence highlighted that its HBM4 IP offers a 60% performance margin over current HBM4 DRAM device capabilities, providing system designers with ample headroom to accommodate future memory speed enhancements. The IP also delivers 20% greater power efficiency per bit and 50% better area efficiency while doubling the number of I/Os to enable significantly higher bandwidth.

The HBM4 PHY is offered as a hardened macro compatible with TSMC’s advanced N3 and N2 process nodes, while the controller is delivered as a soft RTL macro. This allows seamless integration into a wide range of SoC architectures. The solution’s low-latency, high-throughput architecture incorporates built-in reliability, availability and serviceability (RAS) features, as well as built-in self-test (BIST) capabilities to help optimize performance in live data center environments.

Cadence's comprehensive HBM4 offering supports all interposer design variants and includes lab software to streamline subsystem bring-up on customer SoCs. A complete set of deliverables is provided to accelerate integration, including a reference interposer design validated at 12.8Gbps on a full-featured test chip. This chip comprises the HBM4 controller, PHY, interposer and HBM4 DRAM device to ensure robust real-world performance.

Management highlighted that the exponential growth in generative and agentic AI workloads is driving an urgent need for higher memory bandwidth without compromising on power efficiency.

The HBM4 PHY and controller have been rigorously tested using Cadence’s Verification IP for HBM4 to speed up verification and post-silicon validation. This solution supports full IP-to-system-level validation, including a DFI VIP, an HBM4 memory model and a System Performance Analyzer.

Secular trends like 5G, increasing usage of hyperscale computing and autonomous driving are influencing design activity across semiconductor and systems companies. This is likely to open up opportunities for its end-to-end EDA, IP and systems solutions. Going ahead, the company is expected to benefit from customers increasing their R&D spending in AI-driven automation. The company highlighted that the AI super cycle was now entering a new phase. The focus on Generative AI, Agentic AI and Physical AI is leading to an exponential increase in computing demand and semiconductor innovation.  Cadence is eyeing new AI markets like Life Sciences through its OpenEye drug discovery software.

Cadence continues to invest heavily in verification and digital design products, which is helping it to launch products that address the ever-growing needs of electronics and semiconductor companies. The company’s verification business is gaining traction due to the rising complexity of system verification and software bring-up. In April 2024, the company unveiled the latest Palladium Z3 Emulation and Protium X3 FPGA Prototyping systems. In 2024, hardware solutions added more than 30 customers and almost 200 repeat customers, especially among AI and hyperscale clients.

CDNS’ Zacks Rank & Stock Price Performance

CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have inched up 3.5% in the past six months against the Zacks Computer – Software industry's decline of 13.4%.

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Stocks to Consider From the Computer Software Space

Some better-ranked stocks from the broader technology space are ACI Worldwide, Inc. (ACIW - Free Report) , Dassault Systemes (DASTY - Free Report) and SAP (SAP - Free Report) . ACIW sports a Zacks Rank #1 (Strong Buy), while SAP and DASTY carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ACI Worldwide’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 161.34%. In the last reported quarter, ACIW delivered an earnings surprise of 36.71%. Its shares have surged 58% in the past year.

SAP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 6.38%. In the last reported quarter, SAP delivered an earnings surprise of 12.03%. The company’s long-term earnings growth rate is 10.1%. Its shares have advanced 44.5% in the past year.

Dassault’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.64%. In the last reported quarter, DASTY delivered an earnings surprise of 4.88%. Its shares have gained 3.9% in the past six months.

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