1 Hot Stock for 2024 With a Potential Nvidia AI Partnership

Cadence Design Systems (NASDAQ: CDNS) -- a leader in semiconductor and computing system design software -- has been booming. Shares are up nearly 60% in the last 12 months, including a more than 12% increase so far in 2024. Its latest foray is with some help from artificial intelligence (AI).

In early February, Cadence announced a new supercomputer system called Millennium M1 that it says is powered by graphics processing units (GPUs) "from leading providers" -- which could certainly mean Nvidia, the de facto leader in GPU systems and a longtime Cadence collaborator.

Cadence's announcement is part of a broader trend in chip design, and AI (really, just think "accelerated computing" when you see those two letters) is driving the growth. Can Cadence continue its hot streak?

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Source Fool.com