Updated
The most significant concentration Cadence Design Systems discloses is single supplier for certain hardware components, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
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Source: Cadence Design Systems’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
“10-K Item 1A: 'We depend on a single supplier or a limited number of suppliers for certain hardware components and contract manufacturers for production of our hardware products'”
“10-K Item 1A: 'the ongoing geopolitical and economic uncertainty between the United States and China, where we conduct business and have derived a substantial percentage of our revenue'”
The company's concentration profile combines a supply-chain dependency and a geographic exposure that are operationally distinct but both carry disclosed-size weight that makes them the two most material items in the filing. On the input side, the company depends on a single supplier or a limited number of suppliers for certain hardware components, and on contract manufacturers for production of hardware products — a large dependency with no disclosed percentage but framed in the filing as a meaningful operational constraint. A disruption to any sole-source hardware supplier would impair the company's ability to deliver hardware products, with limited short-term substitution options given the qualification requirements for semiconductor and electronic components. The geographic exposure involves China, where the company conducts business and has derived a substantial percentage of revenue — a medium-share structural exposure by disclosed size. The filing specifically calls out ongoing geopolitical and economic uncertainty between the United States and China as a risk factor, flagging that this concentration is subject to a policy and trade-restriction dynamic rather than purely a market demand variable. Export controls, licensing requirements, or escalating tariff regimes could affect the company's ability to serve Chinese customers or to source components through Chinese supply chains. The two exposures are partially linked: China-based contract manufacturing is a common feature of the electronics hardware supply chain, meaning geopolitical tensions with China could simultaneously affect both the revenue-side geographic exposure and the supply-chain dependency. On balance, the hardware supply-chain dependency is the more idiosyncratic risk, while the China geographic exposure is the more policy-sensitive one — both warrant monitoring in the current trade environment.
For the engine’s reasoning on CDNS’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| ADSK | Autodesk, Inc. | 1 | 1 | 1 | 3 |
| CDNS● | Cadence Design Systems, Inc. | 1 | 1 | 0 | 2 |
| ADEA | Adeia Inc. | 1 | 0 | 0 | 1 |
| AGYS | Agilysys, Inc. | 0 | 2 | 0 | 2 |
| ADBE | Adobe Inc. | 0 | 0 | 0 | 0 |
| ADP | Automatic Data Processing, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.