Cadence has introduced an advanced memory IP solution, the HBM4, to meet the evolving demands of system-on-chips (SoCs) designed for next-generation artificial intelligence (AI) training and high-performance computing (HPC) systems. This new offering promises significantly improved performance over its predecessors, offering double the memory bandwidth of the previous HBM3E generation.
The Cadence HBM4 solution, which aligns with the JEDEC JESD270-4 specification, delivers a groundbreaking data rate of 12.8Gbps. This represents a 60% increase over existing HBM4 DRAM speeds, providing engineers with a substantial margin for future enhancements and guaranteeing their SoC designs remain cutting-edge.
What sets the HBM4 apart is its superior power and area efficiency. It boasts a 20% improvement in power efficiency per bit and a 50% enhancement in area efficiency, alongside a twofold increase in I/Os, facilitating a higher bandwidth.
The memory subsystem solution comprises both a physical layer (PHY) and an advanced controller. The HBM4 PHY will be available as a hardened macro for TSMC's N3 and N2 technology nodes, while the controller will be offered as a soft RTL macro. This flexibility supports a variety of interposer design implementations and includes lab software to expedite the memory subsystem's integration into customer SoCs.
Additionally, the HBM4 architecture includes features such as reliability, availability, and serviceability (RAS) and built-in self-test (BIST), essential for optimizing memory subsystem performance in data center operations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Cadence Design Systems Inc (CDNS, Financial) is $310.88 with a high estimate of $355.00 and a low estimate of $200.00. The average target implies an upside of 19.47% from the current price of $260.22. More detailed estimate data can be found on the Cadence Design Systems Inc (CDNS) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Cadence Design Systems Inc's (CDNS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cadence Design Systems Inc (CDNS, Financial) in one year is $333.56, suggesting a upside of 28.18% from the current price of $260.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cadence Design Systems Inc (CDNS) Summary page.
