Goldman Sachs has initiated coverage of Cadence Design Systems, Inc. (CDNS) with a “Buy” rating and a $380 price target. The firm sees the company as a high-quality compounding business with exposure to growth drivers in the semiconductor industry. CDNS is highlighted as one of the Most Promising AI Stocks to Buy Now.

Cadence Design Systems, Inc. (CDNS) saw a 16% YoY increase in core EDA revenue in Q1 2025. The firm is optimistic about the company’s AI-driven Cadence Cerebrus, which gained ~50 new logos in the quarter. CDNS’s software business model, healthy backlog, and AI-driven product innovations position it well in the evolving AI landscape.

Cadence Design Systems, Inc. (CDNS) provides electronic design automation (EDA) software for designing and optimizing AI chips and systems. Rothschild & Co Wealth Management made new investments in CDNS and General Electric Aerospace in Q1 2025, maintaining a portfolio with 25 ownership stakes. CDNS’s Cadence.AI portfolio offers productivity benefits in the fast-evolving AI market.

Read more at Yahoo Finance: Goldman Sachs Begins Coverage of Cadence Design Systems (CDNS) Stock