SAN JOSE, CA -- Cadence Design Systems raised its yearly revenue and profit outlook after reporting strong second-quarter results fueled by growing demand for AI-driven chip and system design software.

 The company now expects revenue of up to $6.3 billion, above its previous forecast, after reporting second-quarter revenue of $1.5 billion, up 24% year-over-year. Profit guidance was also raised, exceeding both the company's prior outlook and analyst expectations.

During the quarter, Cadence introduced AuraStack, an AI platform that enables engineers to design chips using natural language prompts, and reported a growing backlog of future orders as demand for advanced semiconductor and system design tools continues to increase.