Arm Holdings stock rose 4.8% after Meta Platforms' AI tech investment, but faces legal challenges

From Nasdaq: 2025-06-16 18:50:00

Arm Holdings (NASDAQ: ARM) saw a 4.8% increase in shares on Monday, boosted by Meta Platforms’ increased spending on AI technology. Meta recently acquired a 49% stake in Scale AI for nearly $15 billion, becoming Arm’s first customer for its new line of AI-capable chips launching this summer.

Investors in Arm are optimistic about the company’s pivot into designing its own chips, which could accelerate earnings. However, legal challenges from Qualcomm alleging breach of license agreements and anticompetitive behaviors may impact Arm’s future. With a high price-to-earnings ratio, caution is advised for potential investors in Arm Holdings.

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Read more at Nasdaq: Why Arm Holdings Stock Soared Higher Today