Cadence Design may be favored by Intel’s new CEO, says Loop Capital

Loop Capital notes that Intel’s (INTC) appointment of Lip-Bu Tan as CEO – the former CEO of Cadence Design (CDNS), where he turned the company around in his early years – may see him “favor his home team”. Intel is the largest EDA account in the industry, spending approximately $1.0B/year on EDA/IP, and while Intel was not over 10% of Cadence Design’s FY24 revenue, Intel was that one customer disclosed as over 10% of its FY24 accounts receivable, the analyst tells investors in a research note. Loop Capital maintains its Buy rating and $340 price target on Cadence Design.