From Financial Modeling Prep: 2024-10-23 09:00:00

Qualcomm shares dropped over 2% in pre-market as Arm Holdings plans to revoke a key license, impacting Qualcomm’s chip design capabilities. Arm issued a 60-day notice to terminate the agreement, crucial for Qualcomm’s chip development for mobile devices. Arm’s US-listed shares also fell by nearly 3% in pre-market.

Qualcomm heavily relies on Arm’s instruction sets for chip development, with potential revenue implications of about $39 billion. If the license is canceled, Qualcomm faces disruption in chip production, potentially leading to sales cessation or legal battles. This could have far-reaching consequences for the smartphone industry, affecting investor confidence.



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