<div id="readability-page-1"><div> By Hannah Pedone Arm shares led Nadsaq-100 decliners on Monday, reflecting more general pressure on AI names and specific concerns about whether Arm will play a role in a potential Qualcomm-OpenAI chip Shares of Arm fell 8% on Monday. Arm Holdings shares had been riding a wave of enthusiasm over the company's budding semiconductor efforts, but now investors are getting worried that Arm may not play a role in a rival's potentially major chip venture. Shares of Arm Holdings (ARM) closed down 8% on Monday, snapping a seven-day winning streak and posting their largest decline since October, according to Dow Jones Market Data. The stock also paced Nasdaq-100 decliners on the day. Benchmark analyst Cody Acree told MarketWatch that the decline is &#34;definitely&#34; related to a report on X from TF International Securities analyst Ming-Chi Kuo, who said that Qualcomm (QCOM) is working with OpenAI to develop smartphone chips. Read more: Qualcomm's stock soars as an AI opportunity emerges While the report isn't confirmed, investors seem nervous about the unknowns, such as whether the chip design would be Arm-based or if it won't involve the company at all. Arm and Qualcomm did not immediately respond to requests for comment. Arm's Monday selloff also dovetails with what Acree called a &#34;broad-based correction&#34; among &#34;AI-levered companies.&#34; Shares of Broadcom (AVGO), Marvell Technology (MRVL), Advanced Micro Devices (AMD), Lumentum Holdings (LITE) and Coherent (COHR) all posted declines between 1% and 5% on Monday. Meanwhile, shares of Credo Technology Group Holding (CRDO) fell over 7% and MaxLinear's stock (MXL) fell over 14%. Arm's stock surged 19% in March and another 43% in April, partly reflecting excitement over the company's announcement that it would develop its own central processing unit, a move that allows the company to expand its business beyond licensing and royalties for chip designs. A number of analysts upgraded the stock in recent months. Susquehanna analyst Christopher Rolland wrote in a Friday note that Arm's move to diversify its business beyond designing processors for smartphones, in addition to its CPU opportunities, bode well for the stock. He also believes that the company could capitalize on cloud trends and the automotive market. Some analysts still have reservations over the stock. Morgan Stanley's Lee Simpson downgraded the stock earlier this month, saying that a major shortage of dynamic random-access memory chips could hurt the company's royalty business. -Hannah Pedone This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. <pre></pre> (END) Dow Jones Newswires 04-27-26 1809ETCopyright (c) 2026 Dow Jones &amp; Company, Inc.</div></div>

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Arm Holdings shares fell 8% on Monday, ending a seven-day winning streak, amid concerns about its role in a potential Qualcomm-OpenAI chip venture. The decline reflects broader pressure on AI-related stocks, with other companies like Broadcom and AMD also experiencing losses. Analysts have mixed views on Arm's future, with some optimistic about its diversification into CPU development, while others express concerns over potential impacts from memory chip shortages. The stock's recent surge was fueled by excitement over its new business strategies.

- Arm Holdings shares fell 8% on Monday, marking the largest decline since October and reflecting broader concerns regarding AI-related stocks.  
- Investors are apprehensive about Arm's potential involvement in Qualcomm's partnership with OpenAI to develop smartphone chips, despite the report's unconfirmed status.  
- The selloff coincided with a general decline among AI-focused companies, while analysts express mixed sentiments about Arm's diversification strategy and potential challenges in the semiconductor market.

Arm's stock snaps a seven-day winning streak as it loses some of its AI glow