ARM closed down 1.48 (3.59%) at 39.72 as the stock price has begun to accelerate in the downward direction blowing through the important $40 level with relative ease. The stock is now $4.75 or 11 percent off of its 52-week high. After refusing literally for years to recognize that ARM could not support its lofty P/E ratio, investors would have to admit that the market has lost confidence and that few catalysts exist to take the stock higher while many exist that would pressure the stock down.
The departure of Warren East hasn't helped, especially after having unloaded a lot of shares near the 52-week high and before it began the strong move off the highs.
Fierce competition has now arisen from Intel just at the time where ARM's top-end fabrication appears to be stuck at 28nm, where it will likely stay for several years while it tries to develop 20nm that is not FinFET and a half-step to 14/16nm FinFET fabrication. Intel with superior 22nm products already in volume production will move another level up to 14nm production at the end of this year.
Significant evidence exists that this is the tipping point and will mark the end of the ARM era of mobility domination and monopoly. With Haswell due out soon and Intel's fabrication gathering speed and support, ARM has few resources with the strength to reverse the trend...