Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs initiated coverage of the company’s stock with a “Buy” rating and a price objective of $380, as reported by The Fly. The firm believes that Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the most high-quality compounding businesses in its coverage universe. Furthermore, it noted the company’s exposure to multiple growth drivers across the semiconductor industry.
An office of software engineers and designers collaborating on a digital project.
The firm initiated the US digital semiconductor and electronic design automation software group, highlighting that it remains constructive on merchant silicon and EDA vendors tied to AI-related capital spending. As per the firm analyst, the AI investment cycle is in a transition state, but it can sustain growth from current levels. Cadence Design Systems, Inc. (NASDAQ:CDNS)’s core EDA revenue increased 16% YoY in Q1 2025. AI-driven Cadence Cerebrus saw strong momentum with ~50 new logos in the quarter. Cadence Design Systems, Inc. (NASDAQ:CDNS)’s resilient software business model, healthy backlog, and AI-driven product innovations place it well in navigating the dynamic macro environment.
As the fast-evolving AI landscape continues to expand the market opportunities and reshape the entire chip and system development process, the company’s Cadence.AI portfolio provides unparalleled PPA, productivity, and time-to-market benefits.
Cadence Design Systems, Inc. (NASDAQ:CDNS) provides electronic design automation (EDA) software, which is used in designing and optimizing AI chips and systems. Rothschild & Co Wealth Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“In the first quarter we made two new investments, building positions in semiconductor design software provider Cadence Design Systems, Inc. (NASDAQ:CDNS) and leading aerospace company General Electric Aerospace. No divestments were made, leaving the portfolio with 25 ownership stakes.
