As the trading day in New York draws to a close, it would appear that some analysts are correct; the market’s not too pleased about yesterday’s announcement that Cadence is acquiring Tensilica. Shares of CDNS are trading down well over 3% today. But you know, the market’s stupid. They understand zip zero nada about EDA or IP, and really why should they?
After all, EDA and IP providers make the black magic that they do look so easy. And, they’re constantly telling people that what they do isn’t rocket science. But it is! The EDA vendors make the tools that IP vendors use to create their products, and designers use to integrate said IP into the larger designs. It’s called an eco-system and it is rocket science.
It’s also on the level of brain surgery, quantum physics, and a bunch of other esoteric science and engineering disciplines that require a lot of education and and a lot of OJT, and even then is really hard to do. How many traders on Wall Street, or the analysts who track it all, really understand what EDA and/or IP are all about? Exactly!