Qualcomm wins legal battle with Arm, easing concerns about laptop market expansion

From Investing.com: 2024-12-23 04:29:39

Qualcomm wins key legal battle as U.S. federal jury rules its processors are properly licensed under Arm Holdings agreement, easing concerns about laptop market expansion. Trial ends in mistrial, leaving some issues unresolved. Qualcomm shares rise nearly 3% premarket, while Arm shares fall over 3%.

Future trial possibility remains open as Arm seeks retrial. Judge suggests mediation. Jury unable to decide if Nuvia violated Arm license, but rules Qualcomm chips covered. Qualcomm sees victory in innovation validation. Plans for AI-driven laptop chips can proceed to compete with Nvidia, AMD, and MediaTek.

Analysts view verdict as clear win for Qualcomm, positive for company’s Nuvia-inspired products. Arm guidance excluded court case benefits, potentially impacting royalty rates. KeyBanc Capital Markets sees verdict as positive for Qualcomm, negative for Arm in terms of potential financial impact.



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