VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS COMPARISON ★

NO ADVICE

Tuesday, December 30, 2025

Stock Comparison

Cadence Design Systems, Inc. vs Microchip Technology Incorporated

Compare moat strength, market structure, and segment coverage to understand how each company defends its edge.

Cadence Design Systems, Inc.

CDNS · NASDAQ

Market cap (USD)$86.5B
SectorTechnology
CountryUS
Data as of2025-12-29
Moat score
84/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Cadence Design Systems, Inc.'s moat claims, evidence, and risks.

View CDNS analysis

Microchip Technology Incorporated

MCHP · NASDAQ

Market cap (USD)$34.9B
SectorTechnology
CountryUS
Data as of2025-12-29
Moat score
71/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

Full stock profile

Dive deeper into Microchip Technology Incorporated's moat claims, evidence, and risks.

View MCHP analysis

Comparison highlights

  • Moat score gap: Cadence Design Systems, Inc. leads (84 / 100 vs 71 / 100 for Microchip Technology Incorporated).
  • Segment focus: Cadence Design Systems, Inc. has 3 segments (71% in Core EDA); Microchip Technology Incorporated has 3 segments (51.1% in Mixed-signal Microcontrollers).
  • Primary market structure: Oligopoly vs Oligopoly. Pricing power: Strong vs Moderate.
  • Moat breadth: Cadence Design Systems, Inc. has 8 moat types across 3 domains; Microchip Technology Incorporated has 6 across 3.

Primary market context

Cadence Design Systems, Inc.

Core EDA

Market

Electronic design automation tools for semiconductor IC design and verification (digital, custom/analog, signoff, functional verification)

Geography

Global

Customer

Semiconductor designers (fabless and IDMs) and system companies with in-house silicon teams

Role

Tool vendor / workflow platform

Revenue share

71%

Microchip Technology Incorporated

Mixed-signal Microcontrollers

Market

Embedded microcontrollers & microprocessors for embedded control

Geography

Global

Customer

OEMs and distributors (embedded system designers)

Role

IDM / hybrid manufacturing semiconductor supplier

Revenue share

51.1%

Side-by-side metrics

Cadence Design Systems, Inc.
Microchip Technology Incorporated
Ticker / Exchange
CDNS - NASDAQ
MCHP - NASDAQ
Market cap (USD)
$86.5B
$34.9B
Sector
Technology
Technology
HQ country
US
US
Primary segment
Core EDA
Mixed-signal Microcontrollers
Market structure
Oligopoly
Oligopoly
Market share
29%-31% (estimated)
6%-12% (implied)
HHI estimate
n/a
n/a
Pricing power
Strong
Moderate
Moat score
84 / 100
71 / 100
Moat domains
Demand, Legal, Supply
Demand, Supply, Legal
Last update
2025-12-29
2025-12-29

Moat coverage

Shared moat types

Design In QualificationIP Choke Point

Cadence Design Systems, Inc. strengths

Data Workflow LockinSuite BundlingLong Term ContractsInstalled Base ConsumablesCapex Knowhow ScaleService Field Network

Microchip Technology Incorporated strengths

Training Org Change CostsOperational ExcellenceSwitching Costs GeneralScope Economies

Segment mix

Cadence Design Systems, Inc. segments

Full profile >

Core EDA

Oligopoly

71%

Semiconductor IP

Oligopoly

13%

System Design and Analysis

Competitive

16%

Microchip Technology Incorporated segments

Full profile >

Mixed-signal Microcontrollers

Oligopoly

51.1%

Analog

Oligopoly

26.3%

Other (FPGA, memory, timing systems, manufacturing services, SuperFlash licensing)

Oligopoly

22.6%

Want the full wide moat stocks list?

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.