Cadence Design Systems Trading Volume Drops 30 Percent to 141st Rank Despite Stock Price Gain

On June 2, 2025, Cadence Design Systems (CDNS) experienced a significant decline in trading volume, with a total of 5.78 billion shares traded, marking a 30.22% decrease from the previous day. This decline placed Cadence at the 141st position in terms of trading volume for the day. Despite this, the stock price of Cadence Design Systems rose by 1.90%, marking the second consecutive day of gains and a total increase of 2.82% over the past two days.

Cadence Design Systems, Inc. has been impacted by recent geopolitical tensions, particularly the restrictions imposed by the Trump administration on the sale of chip design software to China. These restrictions have led to a significant drop in the company's stock price, as investors react to the potential loss of a major market. The U.S. government's actions, including the issuance of AI chip export control guidelines and the revocation of visas for Chinese nationals, have further exacerbated the situation, leading to a pause on the sale of chip design software to China.

China has criticized the U.S. for these actions, stating that they violate the temporary trade agreement reached in May. The Chinese government has accused the U.S. of undermining the agreement and taking measures that harm Chinese interests. These actions have created uncertainty for companies like Cadence, which rely on the Chinese market for a significant portion of their revenue. The company has not yet issued a statement on how these restrictions will affect its operations or financial performance.