Cadence (CDNS) Expands Deal With Intel Foundry To Benefit From Agentic AI Boom

Cadence Design Systems Inc. (NASDAQ:CDNS) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. AI chips that require high-bandwidth memory also demand cutting-edge packaging simulation techniques and verification tools. Cadence Design Systems Inc. (NASDAQ:CDNS) provides exactly this, making it a direct beneficiary of the HBM boom.

Cadence Design Systems Inc. (NASDAQ:CDNS) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds.

Among important developments, on June 8, Cadence announced an expanded collaboration with Intel Foundry. This partnership will enable chipmakers to create faster and more efficient chips using Intel’s 14A manufacturing technology. The multi-year agreement combines Cadence’s agentic, AI-driven EDA and Design IP solutions with Intel’s advanced technology, helping customers create semiconductor products more quickly and efficiently. Similarly, on June 1, Wells Fargo analyst Joseph Quatrochi reaffirmed a Buy rating on the stock and assigned a target price of $425.

On May 27, Nay Soe, an analyst at Berenberg, raised the firm’s target price on Cadence Design Systems Inc. (NASDAQ:CDNS) from $400 to $440 and maintained a Buy rating on the stock. Owing to the incredible stock performance over the last month, the stock is closing in on Berenberg’s price target. The firm’s price target still offers about 12% upside from the current levels.

Cadence Design Systems Inc. (NASDAQ:CDNS) is a leading provider of electronic design automation (EDA) software, hardware, and IP used by semiconductor companies to design and verify advanced integrated circuits & systems.

While we acknowledge the risk and 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 time frame. If you are looking for an AI stock that is more promising than CDNS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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