Cadence rises ahead of report on AI chip design hopes

** Cadence Design Systems CDNS.O shares rise 4.1% to $339.51 on Mon ahead of Q2 results due after the bell, with focus on demand for its AI-powered design tools

** Electronic design automation software maker expected to post a 24% rise in qtrly rev to $1.58 bln and adj EPS of $2.05, up from $1.65 a yr ago, per LSEG data

** Investors will look for commentary on the recent rollout of its AuraStack AI agent, which automates circuit board and chip packaging design

** Last qtr, the San Jose, California-based co raised its full-yr rev forecast on strong AI chip demand but trimmed its profit outlook due to an acquisition

** Stock now up ~9% YTD, outpacing Nasdaq's .IXIC ~7% gain, though underperforming S&P 500 tech sector's .SPLRCT ~14% advance

** It recently traded at 37x forward earnings, below its five-yr avg of 42x

** 24 of 26 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT $400