Here’s Why Cadence (CDNS) Surged in Q3

2 weeks ago 8

Soumya Eswaran

Thu, December 4, 2025 astatine 7:42 AM CST 3 min read

Brown Advisory, an concern absorption company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The strategy returned -0.88% (net) during the 3rd quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has important vulnerability to AI, its underweight to the astir speculative momentum-driven parts of the commercialized was a headwind to performance. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks specified arsenic Cadence Design Systems, Inc. (NASDAQ:CDNS). Cadence Design Systems, Inc. (NASDAQ:CDNS) is simply a planetary supplier of software, hardware, and different services. The one-month instrumentality of Cadence Design Systems, Inc. (NASDAQ:CDNS) was 3.59%, and its shares gained 10.64% of their worth implicit the past 52 weeks. On December 03, 2025, Cadence Design Systems, Inc. (NASDAQ:CDNS) banal closed astatine $336.11 per share, with a marketplace capitalization of $91.49 billion.

Brown Advisory Large-Cap Growth Strategy stated the pursuing regarding Cadence Design Systems, Inc. (NASDAQ:CDNS) successful its 3rd 4th 2025 capitalist letter:

"Cadence Design Systems, Inc. (NASDAQ:CDNS): Provides bundle services for semiconductor and electronics systems industries. Cadence (CDNS) reported beardown second-quarter results, highlighted by 20% year-over-year gross maturation and astir 30% net growth. Strength was broad-based crossed physics plan automation (EDA), intelligence spot (IP), and strategy design, and the institution raised full-year guidance. While shares initially traded down connected quality that its bundle tools could not beryllium sold successful China owed to broader U.S.–China commercialized negotiations, the concern was resolved, allowing CDNS to resume servicing its Chinese customers. The company’s better-than- statement expected results and a much favorable second-half outlook—despite the commercialized uncertainty—reinforced capitalist assurance successful its semipermanent maturation trajectory."

Cadence Design Systems, Inc. (CDNS) Benefits From Its Relationship With NVIDIA, Says Jim Cramer

Cadence Design Systems, Inc. (NASDAQ:CDNS) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge money portfolios held Cadence Design Systems, Inc. (NASDAQ:CDNS) astatine the extremity of the 3rd quarter, which was 68 successful the erstwhile quarter. While we admit the imaginable of Cadence Design Systems, Inc. (NASDAQ:CDNS) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.