Chip-design software maker Cadence raised its 2026 revenue growth forecast to 21%. Chip packager Amkor's revenue and outlook came in a little below forecasts, and its gross margin guidance was 18% to 19%.
Two companies on opposite ends of the semiconductor process reported on Monday evening, and they told different stories about where the money is in the chip cycle.
Cadence: design demand is still rising
Cadence Design Systems, which makes the software engineers use to design chips, reported third-quarter revenue of $1.633 billion, up 22% from a year earlier. Its backlog reached a record $8.2 billion. Its non-GAAP operating margin was 44.1%, down from 47.6% a year earlier. Non-GAAP earnings were $2.11 a share, above the $2.05 analysts expected, according to FactSet.
Cadence raised its full-year revenue growth forecast to 21% and its non-GAAP earnings forecast to $8.40 a share.
The shares rose 1.79% to $322.17 in regular trading on Monday and were about 2% higher in extended trading.
Amkor: packaging is steady, not accelerating
Amkor Technology, which assembles and tests chips after they are made, reported sales of $1.991 billion and earnings of 76 cents a share, both slightly below the $2.01 billion and 79 cents analysts expected, according to S&P Global. For the fourth quarter, it forecast sales of $1.9 billion to $2.0 billion, against expectations of $2.01 billion, with a gross margin of 18% to 19% and earnings of 65 to 75 cents a share. It expects capital spending of about $2.5 billion this year, which its chief executive tied to expanding customer commitments.
Amkor shares fell 6.34% to $36.81 in regular trading on Monday, before the results. The extended-hours response was mixed.
Why the gap
The contrast reflects where each company sits. Cadence is paid when chips are designed, and the AI race has large chipmakers and cloud providers designing more of them. Its record backlog is contracted future revenue, which gives it unusual visibility.
Amkor is paid when chips are produced and packaged, and it competes on capacity and price. A flat fourth-quarter outlook alongside heavy capital spending means it is investing ahead of revenue that has not yet shown up in its guidance, on the strength of what customers have committed.
Two readings
One reading is that both are in good shape at different points of the cycle: Cadence is capturing the design boom now, and Amkor's investment, backed by customer commitments, positions it to benefit as those designs move into volume production.
The other is that the AI boom is rewarding design and intellectual property more than manufacturing services. A packager guiding flat with gross margins under 20%, while spending $2.5 billion, carries more risk if volumes disappoint, and even Cadence's operating margin narrowed from a year earlier.
What to watch
Cadence's commentary on customer design starts, Amkor's capacity and pricing on its call, and chip-related spending plans from the large cloud providers this week.