Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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

Growth Investment Ratio: 112%

Number of Hedge Fund Holders: 64

Cadence Design Systems, Inc. (NASDAQ:CDNS) is an upstream semiconductor company that provides the building blocks of chip design to firms such as NVIDIA and AMD. This provides it with a key role in the ongoing rush of artificial intelligence since these building blocks are indispensable for any chip design. However, Cadence Design Systems, Inc. (NASDAQ:CDNS)’s shares are up by a modest 14.9% year to date primarily due to the firm’s exposure to the broader semiconductor industry and not just AI chips. Cadence Design Systems, Inc. (NASDAQ:CDNS) has missed analyst guidance for several quarters this year, and this led to its shares being down 3.8% prior to the third quarter earnings. However, Q3 was a reversal in fortune, as the stock soared by 12.5% in its aftermath. This was on the back of Cadence Design Systems, Inc. (NASDAQ:CDNS) raised its full-year profit per share forecast to $5.90 over the previous $5.87 on the back of AI-related tailwinds. Subsequently, any AI demand materializing or a recovery in the broader chip sector should benefit the firm.

Artisan Partners mentioned Cadence Design Systems, Inc. (NASDAQ:CDNS) in its Q3 2024 investor letter. Here is what the fund said:

“Bottom contributors to performance for the quarter included semiconductor design and simulation company Cadence Design Systems, Inc. (NASDAQ:CDNS). Cadence declined due to weaker-than-expected guidance, sensitivity to Cadence’s hardware product cycle in the near term, and uncertainty around China exposure.”