2 Software Stocks Are Merging to Bet On AI -- but Investors, Beware of the Hype

As the artificial intelligence (AI) race heats up, investors have become increasingly aware of the powerful position of electronic design automation (EDA) software companies. That's because these companies deal with a type of design suite specifically for semiconductors that are so vital to AI's development. As a result, industry leaders Synopsys (SNPS 4.65%) and Cadence Design Systems (CDNS 4.71%) have been off to the races, sporting respective gains of 59% and 71% since the start of 2023. Synopsys stock h ...