🌐 Court decision shakes Arm stock, Qualcomm rises! 📉📈

The semiconductor world has seen a major court verdict that is moving the stock price. Shares of Qualcomm $QCOM have gained 3,5 % to $158.24, while Arm $ARM posted a loss 4 % and fell to $126.87.

Breakthrough verdict: Qualcomm celebrates victory 🏆

On Friday night, a U.S. federal court jury ruled that Qualcomm has a valid license to use the chip architecture Arm, acquired through the acquisition of the startup Nuvia in 2021. In doing so, the court rejected the arguments Arm, that a new contract should have been entered into after the acquisition.

For Qualcomm this is a pivotal moment for Qualcomm, opening the way for it to further develop chips that can power, for example, laptops Microsoft Surface. The move is part of the company's efforts to diversify its business, which has so far been focused mainly on smartphones.

How do analysts see it? 📊
Stacy Rasgon (Bernstein): "This turn of events is a clear win for Qualcomm." Recommendation: outperform,$215 price target .

Samik Chatterjee (JPMorgan): "The verdict removes uncertainty and strengthens Qualcomm's position for future litigation." Recommendation: overweight, target price USD 200.

On the other hand, the company Arm, which was hoping for new terms in the licensing agreement, took a loss. Nevertheless, it may benefit from the eventual success of the products Qualcomm Nuvia, albeit to a limited extent.

The verdict not only removes investor concerns Qualcomm's concerns, but also increases the attractiveness of the stock, which is now seen as more stable and forward-looking. Arm however, faces more competition and the question remains how it will perform in the medium term.

What's your take on the legal battle between Qualcomm and Arm? Do you have either of these companies in your portfolio?