5 High Growth Software Stocks that are Profitable

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

Number of Hedge Fund Holders: 46

Computational software and hardware company Cadence Design Systems, Inc. (NASDAQ:CDNS) is in the spotlight after the company posted upbeat Q4 results earlier this month. Cadence Design Systems, Inc. (NASDAQ:CDNS)’s revenue during the fourth quarter of 2022 saw an increase of about 16.4% on a YoY basis to reach $899.88 million, beating estimates by $15.65 million.

Cadence Design Systems, Inc. (NASDAQ:CDNS)’s management expressed confidence in Cadence’s secular growth prospects stemming from AI, machine learning, 5G and hyperscale computing.

Hedge fund sentiment for Cadence Design Systems, Inc. (NASDAQ:CDNS) also ticked up in Q3 of 2022. At the end of the quarter, 46 hedge funds out of the 920 hedge funds tracked by Insider Monkey had stakes in Cadence Design Systems, Inc. (NASDAQ:CDNS), up from 39 hedge funds in the previous quarter. The most notable stakeholder of the company was Panayotis Takis Sparaggis’ Alkeon Capital Management which owns a $523.4 million stake in Cadence Design Systems, Inc. (NASDAQ:CDNS).

Renaissance Investment made the following comment about Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q3 2022 investor letter:

“Cadence Design Systems, Inc. (NASDAQ:CDNS) was another contributor. The company reported strong operating results with broad-based strength from its semiconductor customers who are migrating to next-generation manufacturing nodes. We believe the multi-year investment cycle for semiconductor design spending should drive sustainable double-digit growth well into next year.”