Goldman Sachs · Taiwan · TSMC · Agentic AI · Wall Street · CNBC Technology
Goldman Sachs picks two stocks that could benefit from a chip designer shortage
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A shortage in labor supply for designers of electronic demand automation (EDA) chips presents an opportunity for two stocks in particular, according to Goldman Sachs research.
Key facts
- This is not reflected in Street estimates and may start to be evident as early as the second half of 2026." As a result, Goldman has upgraded its target for CDNS shares to $470 from $410
- For the first half of 2026, TSMC's total revenue reached 2.4 trillion new Taiwan dollars ($74.99 billion), representing a 35.6% increase compared to the same period in 2025
- Their analysis suggests the shift toward custom AI silicon has exacerbated a structural shortage of chip design engineers that EDA companies are uniquely positioned to monetize with Agentic AI
- The Taiwanese chip giant's shares rose 1% Monday., CNBC's Arjun Kharpal, Michael Bloom and Jenny Lee also contributed to this report
Summary
CDNS shares closed on Friday at $384.17. Goldman's 12-month target price for SNPS is $600, but its analysts highlighted potential downside risks including export restrictions, market share losses and fewer custom chip designs. Elsewhere in the industry, Taiwan Semiconductor Manufacturing Co. reported a 67.9% year-on-year rise in its June sales on Monday, ahead of its second-quarter earnings release later this week.