Qualcomm up 3% in premarket in chip trial aftermath
The shares of Qualcomm Inc. gained ground in the premarket on Monday after the firm won a chips trial against Arm Holdings Plc. Previously, Qualcomm and Arm signed an agreement for the former to pay less in royalties for licenses than a third company, Nuvia Group, which Qualcomm later acquired. Following the merger, Qualcomm insisted that the deal should extend to Nuvia as well, which Arm disagreed with, filing a lawsuit.
Last week, a jury in the United States found that Qualcomm's chips, made with Nuvia technology, are properly licensed. "The jury has vindicated Qualcomm's right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with Arm," it was written in a statement posted by the business.
The company's stock jumped 3.02% at 4:23 am ET, going for $157.50 apiece. Meanwhile, Arm's shares shed 3.14% at the same time, selling at $127.63 apiece.