Arm Holdings (ARM) faces a new dilemma for a company sitting at the center of the artificial intelligence (AI) boom. As its technology becomes more important, one of its biggest customers is fighting over how much it should cost. That fight is now in court.
Qualcomm (QCOM) and Arm have returned to a Delaware courtroom, with Qualcomm seeking to stop royalty payments to Arm for as long as five years. The stakes are potentially worth billions of dollars, while a separate part of the case is testing how Arm can price its newer chip architecture. Arm’s royalty business model is a major reason it can keep growing. So what will this trial cost Arm, and does that mean it is time to dump ARM stock? Let’s find out.
