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How ARM (ARM) And Qualcomm (QCOM) Can Turn A Courtroom Battle Into Mutual Success

ARM Holdings and Qualcomm have a tough relationship. They both benefit from each other’s business, yet have been embroiled in a two-year-long legal battle over intellectual property rights. The two companies will meet in court this week and the semiconductor industry will be monitoring the developments closely.

Here’s what the issue is. Qualcomm acquired a startup called Nuvia in 2022 for $1.4 billion. The move made little sense for the chipmaker, except for one small point. Nuvia was a license holder of ARM’s technology. While Nuvia’s license was not transferable, Qualcomm continued to use it without getting ARM’s approval first. This has started a controversy that has dragged down both companies in the last 6 months. QCOM is down 29% during this period while ARM went down as much as 50% at its lowest point in August.

The crux of the matter is that ARM has sent a cancellation notice of its licensing deal to Qualcomm. This deadline is set to expire next week. The trial is expected to end before that deadline.

Even though this looks like a heated battle, things can improve for both companies simultaneously. ARM generates 11% of its total revenue from QCOM. The company is at a point where its growth is stagnating, with just 5% YoY growth reported in the last quarter. This comes at a time when chip companies are booming. If the licensing deal gets canceled, ARM stands to lose 11% of its top line, which will be a massive blow.

Qualcomm on the other hand has its technology at stake, not just revenue. The company used Nuvia’s ARM license to design its chips for the AI laptops it sells. The Snapdragon chip for smartphones is also built on the same designs. A cancelation of the licensing deal will mean it cannot make the Snapdragon chips anymore(or continue to make them at a bigger cost till things are worked out between the two).

The best outcome for ARM is to not win the case and cancel the license but to win the case and then re-negotiate a better deal that helps it generate more revenue.

For QCOM, the best-case scenario is to continue using ARM’s custom technology. If this comes at a greater cost, so be it. If investors are worried about the cost, they may find some relief in QCOM’s diversification plans. The company will continue to make investments to diversify its design sources. One can question their ability to scale these alternative sources, but it cannot be denied that with time, QCOM can easily diversify away from its reliance on ARM. This also poses a big risk for ARM, which is why we believe a settlement is likely soon.

Let’s also not forget that Donald Trump is about to take office. Trump was in office when QCOM and Apple settled their longstanding dispute in 2019. Back then, Trump wanted chip companies to get their act together and unify against China. This time around, the situation is similar, except AI is added to the mix. Trump would never want one of America’s biggest chipmakers to be embroiled in a legal battle due to its AI chips, which is why we think a bullish settlement for QCOM is on the cards.

QCOM is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held QCOM at the end of the third quarter which was 100 in the previous quarter. While we acknowledge the potential of QCOM as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…