UK-based Arm Holdings (ARM) is sinking 5% today after Nvidia (NVDA) reported cutting its stake in the British chip developer. However, Arm did receive some good news earlier this week.

NVDA Slashes Its Stake

Nvidia reported in an SEC filing disclosed today that it had reduced its investment in Arm by about 44% in the fourth quarter. The U.S. tech giant retained slightly above 1.1 million shares of Arm as of the end of last year.

A close-up of a digital circuit board with chips illuminated by LED lights.

Arm's Upbeat News

The company's share of the overall microprocessor market rose to 10.5% in the fourth quarter from 10% in Q3, Citi analysts reported on Feb. 12, citing data from Mercury Research. The increase was due to stepped-up use of Arm's chips in notebooks, Citi noted.

And yesterday The Financial Times reported that Meta (META) had agreed to become the first customer of Arm's in-house chip. Arm is making progress on closing on an acquisition of Ampere Computing, the newspaper added. The latter company is going to reportedly facilitate Arm's transition into a chip maker.

The Recent Price Action of ARM Stock

In the last month, ARM has risen 5%, while it is up 21.5% in the last three months and 27% so far in 2025.

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