Cadence Design Systems (CDNS) stock has surged 23.8% in the past three months, closing at $322.66. The company is closer to its 52-week high of $330.09. With AI driving semiconductor design, Cadence is well-positioned for growth, collaborating with tech giants like Qualcomm and NVIDIA on next-gen AI designs and expanding partnerships with foundry partners. The company’s verification and IP businesses are thriving, leading to an upgraded outlook for 2025 with revenues estimated between $5.15-$5.23 billion and Non-GAAP EPS between $6.73-$6.83. Despite premium valuation concerns, Cadence remains a compelling opportunity with a Zacks Rank #2 (Buy). Other stocks worth considering in the industry are Intuit Inc., Microsoft Corporation, and ACI Worldwide, Inc., all showing positive growth potential.

The demand for data is fueling the next digital gold rush, with opportunities in semiconductor products that titans like NVIDIA don’t build. One under-the-radar chipmaker is well-positioned to capitalize on this growth stage, making it a stock to watch. Want to learn more about this stock and other top recommendations from Zacks Investment Research? Check out their latest report for free.

Read more at Nasdaq: CDNS Gains 24% in Three Months: Where Will the Stock Head From Here?