Is This Unknown Software Stock Set to Soar From Booming Semiconductor Demand?

There is a dual tailwind expected to push the semiconductor industry higher over the next five to seven years. First, the overall demand for chips is rising as the world goes digital, cars get electrified, and artificial intelligence (AI) use cases expand. Then there's the fact that the design of these chips is also getting increasingly complex and expensive. 

That could spell an opportunity for a software design company like Ansys (NASDAQ: ANSS). Electronic design automation (EDA) software is dominated by the big three -- Synopsys (NASDAQ: SNPS), Cadence Design Systems (NASDAQ: CDNS), and Siemens (OTC: SIEGY) EDA (formerly Mentor). However, Ansys plays an important role in chip design and manufacturing, too. Is the stock getting ready to soar?

You've probably heard of Autodesk , the maker of computer-aided drafting and design software AutoCAD, which is used primarily for architecture, engineering, construction, and manufacturing. Well, EDA software from Synopsys and Cadence goes beyond what Autodesk does and focuses on the microscopic world of designing electrical circuits with semiconductive material. Ansys' powerful computational software is complementary to EDA software, as it helps engineers (mechanical, electrical, etc.) simulate how their creations will behave in the real world.  

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Source Fool.com