The Software Technology sector is experiencing an improvement in customer sentiment.
However, it is also looking for more emulation, verification and prototyping.
The hardware portion of chip development has grown from $5 million in 2000 to $33 million in 2009. The cost of developing the software for running the chip has also increased from $4 million in 2000 to $40 million in 2009. Improvement in the market is also prompting more mentor customers to renew their contract earlier than required. In its report, J.P. Morgan (NYSE: JPM) has recommended investing in Cadence Design System (NASADQ: CDNS).
It also has stated that Mentor Graphic Corp. (NASDAQ: MENT) is an attractive stock in the short run.
