35 Trending AI Stocks on Latest News and Analyst Ratings

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15. Cadence Design Systems, Inc. (NASDAQ:CDNS)

Number of Hedge Fund Holders: 64   

Cadence Design Systems, Inc. (NASDAQ:CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. It uses AI to develop simulations for physical phenomena, like air flows around jet aircrafts. Oppenheimer recently initiated coverage of the stock with an Underperform rating and $225 price target. The investment firm sees too many long-term uncertainties around the company’s core technology transitions. These have yet to be reflected in Cadence’s premium valuation, the advisory told investors in a research note. In addition, Oppenheimer does not see Cadence outpacing wafer fab equipment over the next three years with low double-digit revenue growth. As such, the stock looks rich at current levels, the investment firm said.

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