Cadence Trading Volume Soars 347% to 20.86 Billion, Stock Drops 10.67% Amid US-China Tech Restrictions

On May 28, 2025, Cadence's trading volume reached 20.86 billion, marking a significant increase of 347.35% compared to the previous day, placing it at the 24th position in the day's stock market rankings. Cadence's stock price fell by 10.67%.

The Trump administration has issued a directive targeting U.S. companies that provide semiconductor design software, including Electronic Design Automation (EDA) groups such as Cadence. This move is part of a broader effort to clamp down on U.S. firms selling to Chinese entities, as reported by the Financial Times. The directive specifically orders EDA companies to halt sales of chip software to China, which has led to a significant impact on the stock prices of affected companies.

Cadence, along with other EDA companies, has been instructed by the U.S. Department of Commerce to cease selling chipmaking hardware and software to Chinese groups. This directive has resulted in a notable decline in the stock prices of these companies, with Cadence's shares experiencing a significant drop. The impact of this directive is expected to be profound, as it restricts the ability of U.S. EDA companies to operate in the Chinese market, a key region for semiconductor design and manufacturing.