Silvaco: Strong 4Q25 Beat, Cost Cuts, and TCAD/IP Growth Underpin Buy Rating and $10 Target

Needham analyst Charles Shi reiterated a Buy rating on Silvaco Group, Inc. today and set a price target of $10.00.

Charles Shi has given his Buy rating due to a combination of factors including Silvaco’s better‑than‑expected 4Q25 performance, where both revenue and non‑GAAP EPS surpassed guidance and internal forecasts. He also notes that while EDA softened, the IP and TCAD businesses delivered sequential growth, and management’s 1Q26 revenue outlook of $17MM exceeds his prior expectations, supported by resilient demand and sustained non‑GAAP gross margins around 85%.

Looking into 2026, Shi highlights anticipated low‑ to mid‑teens revenue growth driven largely by continued expansion in TCAD and IP, alongside a more aggressive operating expense reduction plan targeting $20MM in annualized savings versus the 3Q25 peak. He expects these efficiencies to push Silvaco back to non‑GAAP profitability as soon as 2Q26 and supports his $10 price target with a 4x EV‑to‑sales multiple on his CY27 revenue forecast, which together justify maintaining a Buy recommendation.

In another report released on March 13, Rosenblatt Securities also maintained a Buy rating on the stock with a $9.00 price target.