Arm Stock Slides To 4-Month Low As Qualcomm Jumps On Victory In Licensing Dispute: Retail Remains Unswayed
By Stocktwits Inc | First Published Dec 23, 2024, 9:51 PM ISTThe jury’s decision, however, wasn’t a complete win for Qualcomm leaving room for further legal battles as Arm evaluates its options.
Arm Holdings stock declined over 7%, while shares of Qualcomm rose over 2% after the latter won the legal dispute between the two companies.
This marks a 4-month low for Arm, which was last seen trading at these levels in September.
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Over the weekend, a U.S. federal court sided with Qualcomm after a week-long trial, ruling that its licensing agreement with Arm remained intact despite claims of a breach.
The dispute arose after Qualcomm acquired Nuvia, a startup that utilizes Arm's architecture in chip design.
Arm alleged that Qualcomm owed higher royalties because Nuvia’s products fell under Qualcomm's umbrella, thus broadening its reliance on Arm’s patents.
On Stocktwits, retail sentiment around Arm remained ‘neutral,’ with chatter increasing to ‘normal’ from ‘low’ levels as users debated whether Qualcomm's partial win had impacted the status quo.
The jury’s decision, however, wasn’t a complete win for Qualcomm. While the court determined no violation of the licensing terms, the jury couldn’t unanimously agree on whether Nuvia had breached its contract with Arm.
This leaves room for further legal battles as Arm evaluates its options (suggest attributing this line to some source. Slightly sensitive). But at least for now, Qualcomm is off the hook, lifting retail sentiment.
While chatter around Qualcomm increased to ‘normal’ from ‘low’ a day ago, sentiment improved to ‘bullish’ from the ‘neutral’ zone.
“We are pleased with today’s decision. The jury has vindicated Qualcomm’s right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with ARM,” the company said in a statement.
“We will continue to develop performance-leading, world class products that benefit consumers worldwide, with our incredible Oryon ARM-compliant custom CPUs,” it added.
Arm Holdings is yet to comment on the verdict.
Despite Arm’s dip on Monday, the stock is up over 81% year-to-date, far higher than Qualcomm’s 11% gains in the period.
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Read also: Arm Stock Slips As Court Room Battle With Qualcomm Kicks Off In Delaware: Retail Divided
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