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ARM Holdings (LON:ARM) shares dipped in premarket trading as Qualcomm (NASDAQ:QCOM) intensifies its legal disputes with ARM Holdings by initiating a global antitrust campaign against the chip-design company. This legal action is the latest in a series of developments between the two tech entities.
According to Citi analysts, Qualcomm’s actions could be interpreted as a strategic move to gain leverage. The analysts noted that while a settlement could be reached during the mediation scheduled for May, the conflict has the potential to extend until a possible retrial later in the year if no agreement is made.
Despite the legal challenges, ARM Holdings continues to perform well commercially. The company has been successful in signing a considerable number of licenses and has reported record licensing revenue. This suggests that ARM Holdings is actively responding to the evolving demands of the market without overly restrictive sales practices.
Currently, ARM Holdings maintains a favorable outlook from analysts, holding a buy rating. The firm also has a price target of $200 for ARM Holdings, indicating confidence in the company’s value and future performance despite the ongoing legal confrontation with Qualcomm.
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