Posted 2/25/2024, 5:47:00 PM
Cadence Launches AI-Powered Supercomputer for Simulation, Fuels Growth Amid Strong Profits
- Cadence Design Systems announced a new supercomputer called Millennium M1 to accelerate computational fluid dynamics (CFD)
- The system uses AI and is likely powered by Nvidia GPUs based on their partnership
- This positions Cadence to benefit from the growth in digital twins and simulation
- Cadence profits are strong while competitor Synopsys may struggle with debt from an acquisition
- Cadence stock is expensive (50X earnings) but innovations like Millennium M1 support premium valuation