Arm reportedly canceled Qualcomm’s design license
The 10-year Treasury yield’s climb to five-month highs is weighing on chip stocks today. Below, let’s dig into how Advanced Micro Devices, Inc. (NASDAQ:AMD), Arm Holdings PLC – ADR (NASDAQ:ARM), and Qualcomm Inc (NASDAQ:QCOM) are reacting to the prospect of higher borrowing costs.
AMD was last seen down 2.3% to trade at $150.60, on track for its third loss in the last four sessions. The equity has been trending lower since a rally from earlier this month fell short of the $170 level, and is well off its March 8, record high of $227.30. In the last 12 months, shares are still up 48.4%.
ARM is down 7.7% at $140.82 at last glance, following reports that it canceled a design license that enabled Qualcomm to make chips using the company’s intellectual property. The 40-day moving average is containing losses, which could be the stock’s single-day percentage drop since August. The equity sports a healthy 87.8% year-to-date lead, though.
QCOM is 4.8% lower to trade at $164.92 at last glance, also suffering from the design license’s reported cancellation. Shares have made several failed attempts to conquer the $180 level since early August. Despite shedding 9.1% in the last three months, QCOM still carries a 13.8% gain for 2024.