South Korea’s Fair Trade Commission inspected Arm’s Seoul office this week after Qualcomm’s licensing complaint, escalating regulatory scrutiny beyond the U.S. and creating new near-term risk for ARM (Nasdaq: ARM) related to licensing revenue and stock volatility.

This article summarizes last week’s concrete developments affecting ARM Holdings (NASDAQ: ARM) — BofA’s downgrade and price-target cut, renewed investor concern over SoftBank‑linked leverage and a December sell‑off, and an escalated Qualcomm lawsuit ahead of a spring trial — and explains the immediate implications for valuation, revenue visibility, and near‑term stock risk.

Arm announced a new Physical AI division at CES 2026 and expanded Flexible Access to its Armv9 edge AI platform, moves that aim to broaden addressable markets and spur design adoption. These strategic steps come amid stock pressure from SoftBank’s margin loan and a steep December correction.

Arm reported a strong Q2 with licensing and royalty growth, but a Goldman Sachs downgrade, heavy put-option activity and sector-driven volatility have created mixed signals for ARM stock. Key near-term drivers include execution on AI/data-center demand, R&D spending, and clarity on margin impact as Arm expands beyond pure IP licensing.

Qualcomm’s acquisition of Ventana Micro Systems on Dec 22, 2025 triggered a clear market reaction: ARM stock fell as investors reassessed the risk of major licensees embracing RISC‑V chiplets. This article reviews the facts, the immediate market moves, and the concrete licensing and competitive pressures facing Arm.

Recent concrete moves — Arm's Flexible Access expansion and NVLink Fusion tie‑in — are creating near-term upside for ARM on the NASDAQ 100, while accelerating RISC‑V adoption represents a measurable long-term licensing risk. This article analyzes the events, market reaction, and what investors should watch next.