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ARM vs LRCX
Which Stock Would AI Choose? Arm Holdings (ARM) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- Arm Holdings (ARM) boasts explosive YTD gains near 88%, driven by AI chip design licensing, but trades at a premium P/E ratio exceeding 270x with high volatility (beta ~3.4).
- Lam Research (LRCX) delivers strong YTD returns around 61% and 1-year gains over 275%, supported by robust Q3 revenue of $5.84B and AI equipment demand, at a more reasonable P/E of ~52x (beta ~1.8).
- Both stocks benefit from semiconductor sector momentum, but LRCX shows superior trend consistency with recent earnings beats and analyst upgrades, while ARM faces elevated valuations.
- LRCX market cap (~$345B) surpasses ARM (~$222B), reflecting hardware scale versus IP focus, with both exposed to AI growth catalysts.
- Recent weeks saw volatility in semis, with LRCX hitting new highs post-earnings and ARM advancing on AI server optimism.
Introduction
Arm Holdings (ARM) and Lam Research (LRCX) represent pivotal players in the semiconductor ecosystem, with ARM licensing IP for chip designs and LRCX supplying wafer fabrication equipment. This comparison is timely amid AI-driven demand reshaping the sector, boosting relative performance in recent market activity. Traders seeking momentum in high-growth semis and investors eyeing long-term AI exposure will find value in evaluating their business models, recent momentum, and risk profiles for informed positioning in a volatile environment.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs and licenses central processing unit (CPU) intellectual property (IP) used in over 99% of smartphones and increasingly in AI data center chips. Its royalty-based model generates high margins from licensing fees and royalties on shipped chips, with growth tied to core complexity in mobile and servers.
In recent weeks, ARM stock has shown strong upward momentum, up ~88% YTD and ~71% over the past year, closing around $209 amid pre-market surges. Sentiment has been buoyed by AI server growth prospects and analyst upgrades like UBS to $245, though high beta (~3.4) amplifies volatility. Upcoming Q4 earnings expect $1.47B revenue, with focus on v9 architecture adoption driving royalties. Risks include premium valuations (P/E ~278x) and competition in custom silicon.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) is a leading supplier of wafer fabrication equipment, specializing in etch, deposition, and clean processes essential for advanced semiconductors. Its systems and support segments serve foundries like TSMC and memory producers, with recurring revenue from services providing stability.
Recent market activity has propelled LRCX higher, with YTD gains ~61%, 1-year ~276%, and shares near $276 after Q3 revenue of $5.84B (up 24% YoY) beat estimates. AI demand for high-bandwidth memory (HBM) and WFE (wafer fabrication equipment) spending outlook of $140B for 2026 fuel optimism, alongside upgrades to $385 targets. Beta (~1.8) indicates moderate volatility versus peers. China exposure and cyclicality pose risks, offset by 50% gross margins.
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Head-to-Head Comparison
Arm Holdings (ARM)’s IP licensing yields scalable, high-margin growth from AI chip designs but lacks hardware capex exposure, contrasting Lam Research (LRCX)’s equipment sales tied to foundry/memory cycles. LRCX (~$345B cap, $22B revenue) scales with WFE spending, while ARM (~$222B cap, $4.7B revenue) bets on royalty ramps.
Recent momentum favors LRCX’s earnings stability versus ARM’s volatility. Risks: ARM’s lofty P/E (~278x) and talent competition; LRCX’s China curbs and downturns. Both thrive on AI, but LRCX offers diversification via services (~30% revenue), while ARM sentiment hinges on mobile/AI adoption. Analyst targets: ARM ~$177 (Moderate Buy), LRCX ~$286 (Moderate Buy).
Tickeron AI Verdict
Tickeron’s AI currently favors LRCX due to trend consistency from earnings beats, lower relative volatility (beta 1.8 vs. 3.4), and catalysts like $140B WFE outlook amid AI infrastructure buildout. ARM’s IP scalability is compelling, but premium valuations temper near-term edge. Probabilistic positioning leans toward LRCX for stability in semis rally.
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 LRCX 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 whileLRCX’s FA Score has 4 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- LRCX’s FA Score: 4 green, 1 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 3 TA indicator(s) are bullish while LRCX’s TA Score has 5 bullish TA indicator(s).
- ARM’s TA Score: 3 bullish, 5 bearish.
- LRCX’s TA Score: 5 bullish, 4 bearish.
Price Growth
ARM (@Semiconductors) experienced а +7.12% price change this week, while LRCX (@Electronic Production Equipment) price change was +4.41% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.89%. For the same industry, the average monthly price growth was +39.97%, and the average quarterly price growth was +81.80%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +0.08%. For the same industry, the average monthly price growth was +22.00%, and the average quarterly price growth was +145.92%.
Reported Earning Dates
ARM is expected to report earnings on Jul 29, 2026.
LRCX is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Semiconductors (+4.89% 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 Production Equipment (+0.08% 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.
| ARM | LRCX | ARM / LRCX | |
| Capitalization | 243B | 374B | 65% |
| EBITDA | 1.11B | 8.07B | 14% |
| Gain YTD | 109.039 | 74.967 | 145% |
| P/E Ratio | 268.82 | 56.55 | 475% |
| Revenue | 4.67B | 21.7B | 22% |
| Total Cash | 3.54B | 4.75B | 75% |
| Total Debt | 461M | 3.73B | 12% |
LRCX | ||
|---|---|---|
OUTLOOK RATING 1..100 | 13 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | |
PROFIT vs RISK RATING 1..100 | 4 | |
SMR RATING 1..100 | 17 | |
PRICE GROWTH RATING 1..100 | 3 | |
P/E GROWTH RATING 1..100 | 8 | |
SEASONALITY SCORE 1..100 | 90 |
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 | LRCX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 81% | 2 days ago 58% |
| Stochastic ODDS (%) | 2 days ago 76% | 2 days ago 61% |
| Momentum ODDS (%) | 2 days ago 77% | 2 days ago 68% |
| MACD ODDS (%) | 2 days ago 77% | 2 days ago 80% |
| TrendWeek ODDS (%) | 2 days ago 87% | 2 days ago 80% |
| TrendMonth ODDS (%) | 2 days ago 89% | 2 days ago 80% |
| Advances ODDS (%) | 2 days ago 87% | 2 days ago 82% |
| Declines ODDS (%) | 4 days ago 79% | 17 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 69% | 2 days ago 66% |
| Aroon ODDS (%) | 2 days ago 90% | 2 days ago 80% |
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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% | +3.30% | ||
| LRCX - ARM | 74% Closely correlated | +1.26% | ||
| KLAC - ARM | 74% Closely correlated | +2.34% | ||
| AMAT - ARM | 73% Closely correlated | +0.90% | ||
| FORM - ARM | 73% Closely correlated | -1.07% | ||
| VECO - ARM | 66% Closely correlated | -1.24% | ||
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LRCX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LRCX has been closely correlated with AMAT. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if LRCX jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To LRCX | 1D Price Change % | ||
|---|---|---|---|---|
| LRCX | 100% | +1.26% | ||
| AMAT - LRCX | 86% Closely correlated | +0.90% | ||
| KLAC - LRCX | 85% Closely correlated | +2.34% | ||
| RMBS - LRCX | 80% Closely correlated | -3.32% | ||
| ASML - LRCX | 80% Closely correlated | +0.19% | ||
| ADI - LRCX | 79% Closely correlated | -1.30% | ||
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