DELAWARE JURY VERDICT HAMMERS ARM HOLDINGS ( NASDAQ : ARM ) AND AMD ( NASDAQ : AMD ) 5 % LOWER AS CHIP SECTOR SELLOFF DEEPENS

What happened: A Delaware jury found that Arm Holdings (NASDAQ: ARM) breached its chip architecture license agreement with Qualcomm (NASDAQ: QCOM) and interfered with Qualcomm's customer relationship, also violating California's unfair competition law. Key numbers: ARM fell 5% to $232.22. AMD fell 5% to $534.29. TSM slipped 2% to $412.45. SOXX fell 3%. Why it matters: The verdict hits the royalty stream that underpins Arm's growth story, and a related bench trial ruling on licensing of Arm's latest chip architecture is expected shortly, leaving investors facing continued uncertainty.

A Delaware jury found that Arm Holdings (NASDAQ: ARM) breached its chip architecture license agreement with Qualcomm (NASDAQ: QCOM) and interfered with Qualcomm's customer relationship, also violating California's unfair competition law.

The verdict hits the royalty stream that underpins Arm's growth story, and a related bench trial ruling on licensing of Arm's latest chip architecture is expected shortly, leaving investors facing continued uncertainty.