Why Arm Stock Is Sinking today
Shares of Arm (NASDAQ: ARM) lost ground in Wednesday morning trading. The semiconductor company's stock price was down by 6.1% as of 12:55 p.m. ET.
Bloomberg published a report Tuesday night stating that Arm had informed that it plans to cancel its chip design architecture licensing arrangement. If that does happen, it could result in significant sales and earnings declines for both chip companies. Qualcomm stock was down 3.4% as of this writing.
Qualcomm uses the design architectures that it licenses from Arm in its central processing units (CPUs) for mobile devices and computers, but the companies' relationship has been jeopardized by legal and contractual disputes. Arm has now reportedly issued a required 60-day notice indicating that it plans to cancel Qualcomm's licensing rights. If that license were to be canceled, Qualcomm could be prevented from selling new products based on Arm's architectures.
Source Fool.com
Qualcomm Inc. Stock
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