- Arm’s value has declined as investors have reacted to Qualcomm’s changes in RISC-V development.
- Qualcomm’s Ventana acquisition raises concerns about future Arm demand
- The market reaction reflects uncertainty regarding the evolution of processor strategies.
Arm’s market value fell after Qualcomm’s announcement. Acquisition of Ventana Micro SystemsThis raises new concerns about the long-term position of British chip designers.
Due to the recent decline in stock prices, At one point the price dropped to around $130.60.Arm’s market capitalization is approximately $138.85 billion.
Qualcomm’s share price went in the opposite direction, rising to about $170.39, increasing its market value to about $190.55 billion.
RISC-V has been improved.
The response comes after Qualcomm announced plans to strengthen its commitment to RISC-V through a deal with Ventana.
The move points to a future in which Qualcomm may develop RISC-V cores in parallel to the Arm-based Orion processors used in its current platforms and traders may see a potential change in its long-term architectural plans.
This acquisition will strengthen Qualcomm’s RISC-V engineering base. “At Qualcomm, we are committed to shaping the future of intelligent computing. We believe the RISC-V instruction set architecture has the potential to push the boundaries of CPU technology and enable innovation across all of our products. The acquisition of Ventana Micro Systems is an important step in our efforts to bring industry-leading RISC-V-based CPU technology to all of our products.”
“We are excited to join the Qualcomm team and contribute to the development of Qualcomm’s pioneering Orion processor technology,” said Balaji Bukta, CEO of Ventana. “The acquisition of Qualcomm represents an exciting new chapter for our team, and we look forward to joining the Qualcomm team and pushing the boundaries of energy efficiency and high performance for the next generation of products and experiences.”
Founded in 2018, Ventana develops high-performance RISC-V chips designed for data centers and enterprise applications.
The Veyron V2 is designed with 32 cores, vector units and matrix accelerators designed for AI workloads.
The company also discussed its next-generation lineup, which is expected to offer higher clock speeds and advanced computing capabilities.
Qualcomm has not disclosed release dates for Ventana-based products. While the company continues to work in parallel on its Orion processor roadmap, this acquisition indicates that it is formulating a broader architectural strategy.
Arm shareholders immediately reacted to this opportunity, sending the stock down as the market believed that widespread adoption of RISC-V by mainstream customers would negatively impact demand for Arm IP in the coming years.
