Cadence Design Systems, Inc.’s Stock Price Plummets by 10.67% to $288.61, Stirring Investor Concerns

Cadence Design Systems, Inc. (CDNS)

288.61 USD -34.47 (-10.67%) Volume: 6.95M

Cadence Design Systems, Inc.’s stock price currently stands at 288.61 USD, experiencing a dip of -10.67% this trading session with a trading volume of 6.95M. Despite the negative performance today, the stock is only down -3.94% Year-to-Date, showcasing its resilience in the market.

Latest developments on Cadence Design Systems, Inc.

Today, Cadence Design Systems Inc. saw a late-day plunge in its stock price after news broke that President Donald Trump ordered US chip software suppliers to halt sales to China. This move caused Cadence Design Systems Inc. stock to underperform compared to its competitors, with its stock price down 3.55% on May 28. Despite this, various financial groups such as Park Square Financial Group LLC, Integrated Advisors Network LLC, and Armis Advisers LLC purchased shares in the company. On the other hand, GTS Securities LLC sold a significant number of shares, while Public Employees Retirement System of Ohio trimmed its holdings. With a mix of acquisitions and sales, the stock movements of Cadence Design Systems Inc. today were influenced by Trump’s decision and various financial institutions adjusting their positions in the company.

Cadence Design Systems, Inc. on Smartkarma

Analysts at Baptista Research have been closely following Cadence Design Sys, a company that has been making significant strides in the AI space. In their report titled “Cadence Design Systems Pushes AI Frontiers But What Challenges Lie Ahead?”, the analysts highlighted the company’s impressive performance in the first quarter of 2025. Cadence Design Sys exceeded expectations across all major financial metrics, with a 23% year-over-year revenue growth and a notable 34% increase in non-GAAP EPS. This strong performance has led to an upward revision of the company’s annual financial forecast, driven by sustained demand for Cadence’s innovative technologies and solutions.

Furthermore, Baptista Research published another report titled “Cadence Design Systems: AI-Powered EDA Tools Are Revolutionizing Chip Design!”, emphasizing the company’s success in the fourth quarter of 2024. Cadence Design Sys reported strong results with significant achievements in revenue and operating margins, ending the year with a record backlog of $6.8 billion. The analysts highlighted the increased demand for Cadence’s AI-driven chip-to-systems portfolio and the expanded application of its AI solutions in semiconductor innovation. The company’s partnerships with industry giants like NVIDIA, Qualcomm, and Marvell have also contributed to the growing adoption of its AI-powered products, such as Cadence Cerebrus, SimAI, and Allegro X AI.

A look at Cadence Design Systems, Inc. Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Looking at the Smartkarma Smart Scores, Cadence Design Sys seems to have a positive outlook in the long term. With a high score in Momentum, the company is showing strong growth potential and market performance. Additionally, Cadence Design Sys scores well in Resilience, indicating its ability to weather economic downturns and market fluctuations. These factors suggest that Cadence Design Sys is well-positioned for continued success in the future.

However, the company’s scores in Value and Dividend are lower, indicating that investors may not see as much immediate return on investment or dividend payouts. Despite this, Cadence Design Sys still scores well in Growth, pointing to its potential for expansion and increased profitability. Overall, Cadence Design Sys appears to be a solid choice for investors looking for long-term growth and stability in the technology sector.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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