Arm violated its contract with Qualcomm, a jury rules in the U.S.

WHAT HAPPENED

A jury in the U.S. concluded that Arm breached its contract with Qualcomm and affected its relationship with Meta. Arm will only have to pay $2; both companies claim to have won parts of the trial.

WHY IT MATTERS

The lawsuit continues: Qualcomm seeks to stop paying royalties to Arm for up to five years. This matters because Arm derives almost all its income from charging for each chip that uses its designs. The pending decision could affect its revenue and the chip sector.

AND FOR YOUR PORTFOLIO

Arm is part of Vectorial's core portfolio. The ruling does not immediately change its business, but it raises an important question: if Qualcomm pays less or stops paying, Arm's main source of income would come under pressure. Qualcomm rose and Arm fell between 1% and 2%.