We recently published a list of 15 Trending AI Stocks on Latest News and Analyst Ratings. In this article, we are going to take a look at where Cadence Design Systems, Inc. (NASDAQ:CDNS) stands against other trending AI stocks on latest news and analyst ratings.
OpenAI, the AI startup of ChatGPT fame, recently urged the United States government and allies to come together to develop the AI infrastructure needed to compete with China. According to a report published by Bloomberg, the startup has said that the US and neighboring countries should form a North American Compact for AI that can streamline access to talent, financing and supply chains for building out the technology. The company further added this collaboration could later expand to include a global network of US allies and partners, including countries in the Middle East.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
At an event hosted by the Center for Strategic and International Studies in Washington, the startup issued a new policy blueprint, saying that the US should backstop energy infrastructure projects by committing to purchase power from them. The company further urged the US to establish AI Economic Zones that speed up the permitting process and help bring nuclear reactors back online. It also proposed expanding nuclear energy capacity by tapping the US Navy, which has built compact reactors to power submarines. The company is already working with Microsoft to set up an AI fund needed to develop AI chips, energy and data centers.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An office of software engineers and designers collaborating on a digital project.
Cadence Design Systems, Inc. (NASDAQ:CDNS)
Market Capitalization: $84 Billion
Cadence Design Systems, Inc. (NASDAQ:CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. On November 11, Loop Capital initiated coverage of the stock with a Buy rating and $360 price target. Semiconductor design companies represent miners for chip-design gold as some succeed while others fail to strike chip-design gold, the advisory told investors in a research note. Investment into EDA, or electronic design automation, and IP companies like CDNS is an ideal way to hedge against this trend in chip design redundancy, Loop added.
Overall, CDNS ranks 10th on our list of trending AI stocks on latest news and analyst ratings. While we acknowledge the potential of CDNS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CDNS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
