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ARM vs FN
Which Stock Would AI Choose? Arm Holdings (ARM) vs. Fabrinet (FN) Stock Comparison
Key Takeaways
- ARM shares have shown volatility in recent weeks, with a dip to around $114 before rebounding to $139, driven by AI chip announcements.
- FN delivered stronger relative momentum, surging nearly 10% in a single session to $601, with YTD gains exceeding 30% amid optical demand.
- Both stocks benefit from AI infrastructure trends, but FN's contract manufacturing in optics shows superior recent revenue growth at 36% YoY.
- ARM commands a premium valuation (P/E ~173) versus FN (~52), reflecting IP licensing scale but higher risk sensitivity.
- Recent market activity highlights FN's outperformance in data center optics, while ARM gains from new AGI CPU launch targeting agentic AI.
Introduction
Arm Holdings (ARM) and Fabrinet (FN) represent key players in the AI and semiconductor ecosystem, with ARM licensing chip architectures and FN providing precision manufacturing for optical components. This stock comparison analyzes their recent performance, growth drivers, and market positioning amid surging demand for data center infrastructure. Traders seeking exposure to AI hardware trends and investors evaluating relative strength in tech subsectors will find insights into momentum, risks, and sector tailwinds shaping these stocks' trajectories.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs and licenses energy-efficient CPU architectures powering mobile devices, servers, and emerging AI applications. In recent market activity, ARM shares experienced volatility, dipping to $114 amid broader sector pressures before rallying over 20% to around $139. Key influences include the launch of its first in-house AGI CPU for data centers, securing partners like Meta, and Q3 fiscal 2026 revenues of $1.24 billion, up 26% YoY with earnings beats. Sentiment has shifted positively on AI expansion beyond licensing, though elevated valuations and geopolitical risks temper gains. YTD returns stand at approximately 22%, outperforming broader indices but trailing some peers in momentum.
FN Overview and Recent Performance
Fabrinet (FN) specializes in advanced optical packaging and precision manufacturing for OEMs in telecom, datacom, and high-performance computing. Recent weeks saw FN shares fluctuate from $485 lows to highs near $601, reflecting resilience with a nearly 10% single-day surge. Driving factors include Q2 fiscal 2026 revenues of $1.13 billion, up 36% YoY, fueled by optical communications growth and HPC ramp-up to $86 million. Earnings of $3.36 per share beat estimates, boosting sentiment amid AI data center demand. YTD performance exceeds 32%, with 160% one-year gains, though cyclical manufacturing exposes it to supply chain shifts.
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Head-to-Head Comparison
ARM’s asset-light IP licensing model contrasts FN’s hands-on manufacturing, with ARM scaling via royalties (high margins, P/E 173) versus FN’s volume-driven optics (P/E 52). Growth drivers align on AI: ARM via CPU dominance and new silicon, FN through datacom/HPC surges. Recent momentum favors FN (30%+ YTD, 160% 1Y) over ARM’s 22% YTD amid pullbacks. Risks differ: ARM faces valuation/geopolitical pressures, FN supply chain/FX volatility. Both tied to semis/AI, FN shows resilient sentiment from earnings beats.
Tickeron AI Verdict
Tickeron’s AI currently favors FN due to superior trend consistency, explosive relative performance exceeding 120% over one year, and strong positioning in AI optical demand with recent earnings beats and lower volatility versus peers. While ARM benefits from catalysts like its AGI CPU launch, FN’s stability and revenue trajectory suggest higher probability of near-term outperformance based on observable momentum and sector data.
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. Disclaimers and Limitations
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 ARM is a Hold and FN is a Hold.
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 undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ARM’s FA Score shows that 1 FA rating(s) are green whileFN’s FA Score has 2 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- FN’s FA Score: 2 green, 3 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.
ARM’s TA Score shows that 4 TA indicator(s) are bullish while FN’s TA Score has 5 bullish TA indicator(s).
- ARM’s TA Score: 4 bullish, 4 bearish.
- FN’s TA Score: 5 bullish, 3 bearish.
Price Growth
ARM (@Semiconductors) experienced а +11.95% price change this week, while FN (@Electronic Components) price change was +4.19% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +10.10%. For the same industry, the average monthly price growth was +24.60%, and the average quarterly price growth was +26.97%.
The average weekly price growth across all stocks in the @Electronic Components industry was +4.34%. For the same industry, the average monthly price growth was +13.75%, and the average quarterly price growth was +26.13%.
Reported Earning Dates
ARM is expected to report earnings on May 06, 2026.
FN is expected to report earnings on May 11, 2026.
Industries' Descriptions
@Semiconductors (+10.10% 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.
@Electronic Components (+4.34% weekly)The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
| ARM | FN | ARM / FN | |
| Capitalization | 186B | 25.1B | 741% |
| EBITDA | 1.11B | 466M | 237% |
| Gain YTD | 52.530 | 51.531 | 102% |
| P/E Ratio | 233.47 | 67.12 | 348% |
| Revenue | 4.67B | 3.89B | 120% |
| Total Cash | 3.54B | 961M | 369% |
| Total Debt | 461M | 4.89M | 9,437% |
FN | ||
|---|---|---|
OUTLOOK RATING 1..100 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | |
PROFIT vs RISK RATING 1..100 | 4 | |
SMR RATING 1..100 | 46 | |
PRICE GROWTH RATING 1..100 | 35 | |
P/E GROWTH RATING 1..100 | 6 | |
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.
| ARM | FN | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 79% | 4 days ago 71% |
| Stochastic ODDS (%) | 4 days ago 74% | 4 days ago 79% |
| Momentum ODDS (%) | 4 days ago 81% | 4 days ago 78% |
| MACD ODDS (%) | 4 days ago 86% | 4 days ago 77% |
| TrendWeek ODDS (%) | 4 days ago 87% | 4 days ago 78% |
| TrendMonth ODDS (%) | 4 days ago 88% | 4 days ago 79% |
| Advances ODDS (%) | 4 days ago 86% | 8 days ago 80% |
| Declines ODDS (%) | 14 days ago 81% | N/A |
| BollingerBands ODDS (%) | 4 days ago 69% | 4 days ago 79% |
| Aroon ODDS (%) | N/A | 4 days ago 78% |
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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% | +2.71% | ||
| LRCX - ARM | 74% Closely correlated | +2.54% | ||
| KLAC - ARM | 74% Closely correlated | +3.26% | ||
| AMAT - ARM | 73% Closely correlated | +1.81% | ||
| FORM - ARM | 73% Closely correlated | +7.46% | ||
| VECO - ARM | 66% Closely correlated | +0.19% | ||
More | ||||
FN and
Correlation & Price change
A.I.dvisor indicates that over the last year, FN has been closely correlated with GLW. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if FN jumps, then GLW could also see price increases.