Top 10 AI Stocks to Watch: Latest News and Ratings

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

Number of Hedge Fund Holders: 53

Cadence Design Systems, Inc. (NASDAQ:CDNS) is a leading Electronic Design Automation (EDA) and Intelligent System Design provider that supplies software and specialized computer servers to leading AI-chip designers. On December 13, Mizuho raised the firm’s price target on Cadence Design to $350 from $325 and kept an “Outperform” rating on the shares.

The rating, issued as part of a 2025 outlook for the software group, reflects the recent increases in comp multiples. The firm believes that the most important trends impacting software vendors today and in the future are digital transformation, generative artificial intelligence, data and analytics, contact center cloud migrations, DevOps, and next-generation security. The firm believes that the industry’s risk/reward is more balanced entering 2025, but is overall appealing.