Key Stats for Arm Holdings Stock
- Price change for Arm Holdings stock in the last 6 months: 107%
- $ARM Stock Price as of Oct. 2: $307
- 52-Week High: $453
- $ARM Stock Price Target: $289
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What Happened?
Arm Holdings (ARM) is back in court with one of its biggest customers. Qualcomm and Arm face off on Monday in a five-day jury trial. It is being held in a U.S. federal court in Delaware.
Qualcomm makes two main claims.
- First, it says Arm withheld chip-testing tools due under their contract.
- Second, it says Arm leaked its 2024 threat to end a key license deal.
- Qualcomm says the leak hurt talks for a chip deal with Meta.
Qualcomm wants to stop paying royalties to Arm for up to five years. That could be worth billions of dollars.
But Judge Maryellen Noreika is deciding whether to throw out that part of the contract. If she does, Qualcomm could only seek smaller damages.
Arm denies breaking the contract. It calls the claims of damage to Qualcomm’s deals speculative.
Arm also says Qualcomm can’t seek damages over the leak. It says Qualcomm leaked private details of antitrust probes into Arm.
The judge will also hear a related bench trial. It covers whether Arm negotiated in good faith on the next version of its chip technology.
Qualcomm’s agreement with Arm runs through 2033.
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What the Market Is Telling Us About Arm Holdings Stock
This fight has a long history. Arm sued Qualcomm in 2022. Qualcomm won a key victory in 2024. Now it’s on offense.
The risk to Arm Holdings stock is about money and trust. Royalties are Arm’s largest revenue line. Royalty revenue was $715 million last quarter, up 22%.
It made up more than half of total revenue of $1.29 billion. Losing years of Qualcomm royalties would be a real hit. Still, the judge may limit the damages.
The business itself looks healthy. Licensing revenue was $574 million, up 23%. Non-GAAP EPS was $0.45. Free cash flow was $665 million.
Arm guided next quarter revenue to about $1.38 billion.
There is also a new twist.
Arm now sells its own chips, the Arm AGI CPU. On the Q1 call, management said demand is above $2 billion. Qualcomm is also entering data center CPUs. That makes Arm a customer and a rival.
For investors, the trial adds a headline risk for Arm Holdings stock. The outcome could affect future talks between the two firms.
Still, Arm Holdings stock is also driven by data center growth, where royalties more than doubled last quarter.
Watch the ruling on the royalty term first. That decision could matter most for Arm Holdings stock.
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So what is Arm stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
