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AMAT vs ARM
Which Stock Would AI Choose? Applied Materials (AMAT) vs. ARM Holdings (ARM) Stock Comparison
Key Takeaways
- Applied Materials reported record fiscal Q3 2026 revenue of $9.1 billion, up 25% year over year, driven by AI-related semiconductor equipment demand.
- ARM Holdings posted fiscal Q1 2027 revenue of $1.29 billion, up 22% year over year, supported by licensing growth in AI and data center applications.
- Both stocks delivered strong year-to-date gains exceeding 70% but experienced notable pullbacks in recent market activity amid broader sector volatility.
- Applied Materials operates in semiconductor manufacturing equipment, while ARM Holdings focuses on chip architecture intellectual property licensing.
- AI infrastructure buildouts remain the primary growth driver for both companies, though exposure differs between equipment supply and processor design.
- Recent dividend announcement by Applied Materials and new AI chip developments at ARM Holdings highlight ongoing capital returns and product momentum.
Introduction
Applied Materials (AMAT) and ARM Holdings (ARM) represent distinct segments of the semiconductor value chain, making their comparison relevant for investors seeking exposure to artificial intelligence infrastructure. Equipment providers like Applied Materials supply the tools necessary for advanced chip production, while ARM Holdings licenses processor architectures widely adopted in AI and computing applications. Traders and long-term investors monitoring relative performance, sector positioning, and AI-driven catalysts may find this analysis useful for assessing diversification opportunities within technology equities. The comparison emphasizes verifiable recent developments and observable market dynamics rather than forward projections.
AMAT Overview and Recent Performance
Applied Materials designs and manufactures equipment used in semiconductor fabrication, including deposition, etch, and inspection systems critical for producing advanced logic and memory chips. In recent market activity, the stock experienced a pullback following earlier gains, with one-month declines around 10-17% amid sector rotation. Performance was supported by record fiscal third-quarter 2026 results, including revenue of $9.1 billion and robust operating margins, fueled by heightened demand for tools tied to high-bandwidth memory and AI compute. Management highlighted multi-year visibility from customer commitments, contributing to positive sentiment despite short-term price pressure. A quarterly dividend of $0.53 per share was also approved, underscoring capital return policies.
ARM Overview and Recent Performance
ARM Holdings develops and licenses processor architectures and related intellectual property used in a wide range of semiconductors, from smartphones to data center servers. The stock showed volatility in recent market activity, with three-month declines near 35% offset by rebounds on product announcements. Fiscal first-quarter 2027 results featured revenue of $1.29 billion, reflecting 22% year-over-year growth, with royalty income benefiting from AI adoption. Recent developments around new AI-focused chips and expanded partnerships have influenced sentiment, driving short-term gains. Broader exposure to edge and cloud AI applications positions the company within expanding end markets, though share price movements have reflected both enthusiasm for growth and concerns over valuation and supply dynamics.
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Head-to-Head Comparison
Applied Materials and ARM Holdings differ fundamentally in business models: the former supplies physical manufacturing equipment to chipmakers, while the latter licenses scalable intellectual property for chip designs. Growth drivers for Applied Materials center on capital spending cycles in semiconductor fabrication, particularly advanced packaging and memory, whereas ARM benefits from royalty streams tied to device shipments and design wins in AI processors. Recent momentum has favored both amid AI spending, yet Applied Materials demonstrated stronger sequential revenue visibility in its latest quarter compared with ARM’s licensing focus. Risk factors include cyclical equipment demand for AMAT and dependency on royalty volumes plus competitive IP dynamics for ARM. Sector exposure overlaps in AI but diverges in supply chain positioning, with market sentiment reflecting shared tailwinds tempered by valuation concerns and macroeconomic influences on tech spending.
Tickeron AI Verdict
Based on observable factors such as earnings consistency, order visibility, and relative stability in recent performance, Tickeron’s AI models would currently assign a modestly higher probability of favorable positioning to Applied Materials (AMAT) over ARM Holdings (ARM). The equipment provider’s record results and multi-quarter demand commitments provide measurable trend support, while ARM’s licensing model shows strong growth but greater sensitivity to royalty timing and product launch cycles. This assessment remains probabilistic and tied to prevailing data patterns rather than guarantees of future outcomes.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AMAT is a Buy and ARM is a StrongBuy.
AMAT | ||
|---|---|---|
OUTLOOK RATING 1..100 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 42 | |
SMR RATING 1..100 | 25 | |
PRICE GROWTH RATING 1..100 | 38 | |
P/E GROWTH RATING 1..100 | 9 | |
SEASONALITY SCORE 1..100 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
| AMAT | ARM | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 89% | 4 days ago 83% |
| Stochastic ODDS (%) | 4 days ago 66% | 4 days ago 73% |
| Momentum ODDS (%) | 4 days ago 70% | 4 days ago 76% |
| MACD ODDS (%) | 4 days ago 80% | 4 days ago 85% |
| TrendWeek ODDS (%) | 4 days ago 77% | 4 days ago 87% |
| TrendMonth ODDS (%) | 4 days ago 79% | 4 days ago 89% |
| Advances ODDS (%) | 6 days ago 79% | 7 days ago 86% |
| Declines ODDS (%) | 13 days ago 65% | 5 days ago 80% |
| BollingerBands ODDS (%) | N/A | 4 days ago 63% |
| Aroon ODDS (%) | 4 days ago 72% | 4 days ago 86% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AMAT’s FA Score shows that 2 FA rating(s) are green while ARM’s FA Score has 1 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- ARM’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AMAT’s TA Score shows that 4 TA indicator(s) are bullish while ARM’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 3 bearish.
- ARM’s TA Score: 5 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +9.09% price change this week, while ARM (@Semiconductors) price change was +12.59% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +1.62%. For the same industry, the average monthly price growth was +5.32%, and the average quarterly price growth was +22.68%.
The average weekly price growth across all stocks in the @Semiconductors industry was +0.09%. For the same industry, the average monthly price growth was +7.68%, and the average quarterly price growth was +54.84%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
ARM is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Electronic Production Equipment (+1.62% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
@Semiconductors (+0.09% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
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ARM and
Correlation & Price change
A.I.dvisor indicates that over the last year, ARM has been closely correlated with LRCX. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if ARM jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To ARM | 1D Price Change % | ||
|---|---|---|---|---|
| ARM | 100% | +1.30% | ||
| LRCX - ARM | 74% Closely correlated | +2.62% | ||
| KLAC - ARM | 74% Closely correlated | +0.43% | ||
| AMAT - ARM | 73% Closely correlated | +2.27% | ||
| FORM - ARM | 73% Closely correlated | +0.50% | ||
| VECO - ARM | 66% Closely correlated | +9.28% | ||
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