What's Going On With Arm Shares Wednesday?

Arm Holdings Plc (NASDAQ:ARM) shares are trading lower on Wednesday amid reports of China working to rival the West for AI chips.

What To Know: A Reuters report said Chinese scientists have built a prototype extreme ultraviolet (EUV) lithography machine, a critical technology used to manufacture the most advanced semiconductor chips.

The prototype was completed in early 2025 and is undergoing testing in Shenzhen. The machine is capable of generating extreme ultraviolet light, a key step in producing advanced chips used in artificial intelligence, smartphones and military applications, though it has not yet produced working chips.

The report said the effort is part of a long-running Chinese government initiative to achieve semiconductor self-sufficiency, with officials targeting production of working chips on the prototype by 2028, while sources cited a more realistic timeline of 2030.

The development raised concerns about potential competition in advanced chip technology, weighing on companies tied to the global AI and semiconductor ecosystem, including Arm.

Additionally, it was reported that Blue Owl Capital will not provide funding for a $10 billion deal to build Oracle’s next data center.

According to a Financial Times report, Blue Owl had been in discussions with Oracle and lenders to finance a planned 1-gigawatt data center in Michigan, but negotiations stalled, and the agreement will not move forward. The breakdown leaves the financing of the facility uncertain, as Oracle has not yet finalized a deal with a new backer.

The report said the funding setback comes amid growing investor concerns around Oracle's rising debt levels and heavy spending on artificial intelligence infrastructure, which has weighed on sentiment across companies tied to large-scale data center development.

ARM Price Action: At publication on Wednesday, Arm shares are trading 5.31% lower at $114.67, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.

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• Oracle Stock Sell-Off Intensifies: What’s Behind The Move?