Arm Tumbles 4.45% on Record $1.79B Trading Volume as Nvidia-Intel Pact Shakes Chip Market

On September 18, 2025, , . The drop followed news of Nvidia’s $5 billion investment in Intel to co-develop chips for PCs and data centers, a move that overshadowed broader market gains driven by expectations of rate cuts. Semiconductor stocks, including Intel, surged on the partnership, but Arm’s position as a chip designer faced pressure as the collaboration signaled reduced reliance on its architecture for key applications.

The broader market saw record highs across major indices, . However, Arm’s decline highlighted sector-specific volatility, as investors shifted focus to Intel-Nvidia’s strategic alignment. The move underscored competitive dynamics in chip design, where partnerships for AI and PC chip development could alter market share trajectories. Despite macroeconomic optimism, Arm’s stock reaction reflected immediate concerns about its competitive positioning in a rapidly evolving industry landscape.

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