May. 7 at 10:00 PM
$ARM $ARMG Tariff or at least the threat of it is weighing into chip earning.
“…U.K.-based Arm makes money by licensing its chip designs to semiconductor companies and smartphone makers such as
Apple and Qualcomm. Arm's latest advanced chip technology, called Armv9, generates higher royalty rates than its
previous Armv8. It is also making progress in high-end cloud server processors, including chip technology for Microsoft
and Nvidia.
Any increase in tariffs could affect Arm's chip customers, making it more expensive for the companies to
manufacture chips. The Trump administration has so far exempted semiconductors from tariffs. White House officials have
said chips will be covered under a different sector tariff in the future.
Arm stock has weathered the tariff volatility better than its U.S. chip peers. Investors are optimistic that Arm's
core customers in the smartphone and AI chip markets are doing better than the general semiconductor market…”
