The Importance of Cadence in the Cloud Industry

Cadence is a duopoly in the eda area, which are tools that design next generation silicon. Their new products have ai embedded so if you're working on a three nanometer chip that is incredibly complicated they can use ai to actually Optimize designs in the front end. Enterprise agreements generally go for three years Okay, a lot of these renewals are coming up next year Next year when you have to buy the ai tool The asp's are two three four x higher So there's a huge tailwind on these renewals due to their ai functionality Second of all they're getting into simulation technologies Management is extremely smart and knows where the market's going. As