** U.S.-listed shares of Arm Holdings O9Ty.F, ARM.O fall 7.5% to $96.98 premarket

** ARM's licensing revenue missed estimates even as it stepped up efforts to strengthen the segment with new chip technology designs

** Licensing revenue for Q3 came in at $505 million, below estimates of $519.9 million, according to FactSet

** Revenue from royalties rose 27% to $737 million in Q3, above FactSet estimates of $707.9 million

** Co's efforts towards developing its own complete chip have weighed on the company's operating expenses

** "We remain concerned that a move into full-chip solutions could create conflicts of interest with customers and dilute Arm’s premium gross margin, operating margin, and free cash flow profile potentially pressuring its valuation multiple," J.P.Morgan analysts said in a note

** Co sees revenue of $1.47 billion for Q4 vs estimates of $1.44 billion

** 24 of 40 brokerages rate the stock "buy" or higher, 13 "hold" and 3 "sell" or lower; their median PT is $152.5 - LSEG data

** YTD, ARM down over 4% as of last close

(Reporting by Kanchana Chakravarty in Bengaluru)

((Kanchana.Chakravarty@thomsonreuters.com;))