Qualcomm Drops 3.03% Amid ARM Licensing Concerns

On April 4, 2025, Qualcomm's stock experienced a 3.03% drop in pre-market trading.

Qualcomm's recent financial performance has been robust, with a 17.45% year-over-year increase in total revenue to $116.69 billion and a 14.93% rise in net income to $31.8 billion as of December 29, 2024. The company is set to release its 2025 mid-year financial report on May 7, which investors will closely monitor for further insights into its financial health and strategic direction.

Qualcomm and Samsung are reportedly developing their own custom RISC-V cores to avoid the high licensing fees associated with ARM architecture. This move is driven by the escalating costs of ARM's licensing, which can quickly add up for companies producing millions of chips annually. Both companies have extensive experience in custom CPU design and have been exploring RISC-V for various applications, including IoT and wearable devices. This strategic shift could significantly impact their future product lines and cost structures, potentially influencing investor sentiment and stock performance.