Cadence CEO Anirudh Devgan addressed the recent stock selloff in a CNBC interview, attributing it to broader software market fears and emphasizing the company's integral role in the semiconductor industry.

Cadence Design Systems CEO Anirudh Devgan addressed the stock's recent underperformance on CNBC's "Mad Money" this week. This occurred despite the company's strong earnings. Devgan argued the company was unfairly caught in a wider software selloff. This selloff stems from fears of AI disruption. Devgan stated Cadence's tools are an "irreplaceable part of the semiconductor industry." These tools are essential for designing complex chips. He added that AI acts as a "turbocharger" for performance, not a replacement.

The stock declined during a period when the company reported strong financial results. Cadence reported a 24% year-over-year revenue increase in its last quarter. It also raised its full-year growth guidance to 19%. Separately, 13F filings revealed new institutional investments in CDNS during the second quarter. Oxbow Advisors LLC acquired a $3.90 million stake. Wealthfront Advisers LLC acquired a $12.77 million stake.