This Top AI Stock Just Made an Important Acquisition to Kick Off 2024
As AI went from short-term hype to an enduring trend, the world became aware of how important electronic design automation (EDA) software is in 2023. EDA is a type of computer-aided design suite specifically for chips and computing systems. To start 2024, industry leader Cadence Design Systems (NASDAQ: CDNS) is making an acquisition to double down on its most critical EDA-related services: custom silicon design.
The company being acquired is a small engineering team called Invecas, which will be added to Cadence's Silicon Solutions Group. Here's what investors need to know.
First, let's address the big question first: Is Cadence stock a buy right now? After an epic 70% increase in 2023, this stock isn't cheap. Shares trade for nearly 40 times the expected earnings per share in 2024 and about 45 times the expected 2024 free cash flow.
Source Fool.com
