- Arm’s valuation falls massively as investors react to Qualcomm’s shift to RISC-V development
- Qualcomm’s acquisition of Ventana raises concerns about future demand for Arm
- Market response reflects uncertainty over evolving processor strategies
Arm’s market value fell sharply after Qualcomm announced it would acquire Ventana Micro Systems, sparking renewed concern about the British chip designer’s long-term position.
Shares have fallen in recent days, falling to around $130.60 at one point, leaving Arm’s market cap near $138.85 billion.
Qualcomm stock moved in the opposite direction, rising to around $170.39 and bringing its market cap to around $190.55 billion.
RISC-V gets a boost
The reaction came after Qualcomm announced plans to further its work on RISC-V through the Ventana deal.
The move hints at a future in which Qualcomm could develop RISC-V cores alongside the Arm-based Oryon processors used in its current platforms, which traders see as a possible shift in long-term architecture planning.
The acquisition strengthens Qualcomm’s RISC-V engineering base. Durga Malladi, executive vice president and general manager of the chip giant, said: “At Qualcomm, we are committed to shaping the future of intelligent computing. We believe the RISC-V instruction set architecture has the potential to advance processor technology, enabling innovation across products. The acquisition of Ventana Micro Systems marks a critical milestone in our journey to deliver cutting-edge RISC-V-based processor technology across all products.”
Balaji Baktha, CEO of Ventana, said: “We are excited to join the Qualcomm team and bring our RISC-V expertise to the development of Qualcomm’s Oryon processor technology. The acquisition of Qualcomm marks an exciting new chapter for our team and we look forward to joining the Qualcomm team in pushing the boundaries of energy-efficient high performance for next-generation products and experiences.”
Ventana, founded in 2018, develops high-performance RISC-V chipset designs for data centers and enterprises.
Its Veyron V2 design includes up to 32 cores, vector units and matrix accelerators designed for AI tasks.
The company has also discussed a next-generation line that is expected to offer higher clocks and expanded math capabilities.
Qualcomm did not provide any timeline for Ventana-based products. It continues to work on its Oryon CPU roadmap in parallel, although the acquisition suggests it is preparing a broader architecture strategy.
Arm shareholders reacted quickly to this possibility, sending the stock lower as markets consider how broader adoption of RISC-V by a major customer could negatively influence demand for Arm IP in the years to come.
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