Cadence Design shares surge 5.11% intraday on valuation gap and AI investment boom.

Cadence Design Systems (CDNS) rose 5.11% intraday as investors reacted to reports highlighting its undervaluation and AI-driven growth potential. The stock’s surge followed analyst commentary suggesting a fair value of $384.20, significantly above its recent closing price of $270.14, signaling a potential re-rating. Additionally, the company is benefiting from a broader AI investment boom, with its high-end software solutions gaining traction in the semiconductor design sector. Analysts remain optimistic, citing strong returns on capital and the stock’s proximity to record levels. These factors collectively supported the intraday rally, reflecting confidence in Cadence’s strategic positioning amid rising demand for AI-related technologies.