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ARM vs MX
Which Stock Would AI Choose? Arm Holdings (ARM) vs. Magnachip Semiconductor (MX) Stock Comparison
Key Takeaways
- Arm Holdings (ARM), a leader in semiconductor IP licensing, has delivered robust year-to-date (YTD) gains of over 80% but faced pressure from recent sector-wide sell-offs.
- Magnachip Semiconductor (MX), focusing on analog and power solutions, reported Q1 revenue beats amid its shift to a pure-play power business, driving recent stock surges.
- ARM trades at a premium price-to-earnings (P/E) ratio above 260, reflecting AI growth expectations, while MX remains unprofitable with negative earnings per share (EPS).
- Recent semiconductor volatility hit ARM harder due to events like TSMC's stake sale, contrasting MX's positive earnings momentum.
- Both operate in semiconductors but differ in scale: ARM's $214 billion market cap dwarfs MX's $118 million.
Introduction
Arm Holdings (ARM) and Magnachip Semiconductor (MX) represent contrasting profiles within the semiconductor sector: one a dominant intellectual property (IP) licensor powering AI and mobile chips, the other a smaller analog and power management specialist undergoing strategic refocus. This comparison suits growth-oriented investors eyeing AI trends alongside value seekers in niche semis, as well as day traders tracking recent volatility. By examining business models, performance, and market positioning, traders gain insights into relative strengths amid evolving chip demand and sector rotations.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs energy-efficient processor architectures licensed to chipmakers worldwide, dominating mobile and increasingly AI/data center applications. Its royalty-based model yields high margins, bolstered by shifts toward advanced nodes and custom silicon. In recent market activity, ARM shares, trading around $200 with a market cap exceeding $210 billion, have shown strength with YTD gains over 80% but encountered headwinds from a broader semiconductor sell-off. Influences include TSMC's $231 million stake exit and concerns over AI infrastructure spending slowdowns tied to OpenAI updates, prompting an 8% drop in recent sessions. Analyst targets average $171, with some raised to $220 amid optimism for upcoming earnings. Sentiment reflects high valuations (P/E over 260) balanced by growth catalysts like AI chip launches.
MX Overview and Recent Performance
Magnachip Semiconductor Corporation (MX) provides analog and mixed-signal semiconductors, emphasizing power management solutions for consumer electronics, automotive, and industrial uses. As a fabless firm transitioning to a pure-play power semiconductor model, it targets higher profitability through specialized products like ultra-low Ron MOSFETs. Shares, around $3.25 with a $118 million market cap, have risen 27% YTD and surged recently on positive Q1 results: revenue of $46 million beat estimates despite a net loss, with inventory improvements and sequential growth. A 23% single-day jump and 83% four-week gain signal momentum, though volatility persists in this small-cap name. Analysts maintain Buy ratings with $4-$5.50 targets, buoyed by 55 new products planned for the year.
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Head-to-Head Comparison
ARM’s IP licensing model offers scalable, high-margin growth via royalties from AI/data center adoption, contrasting MX’s product sales in power semis, which face cyclical demand but promise niche expansion. Growth drivers diverge: ARM leverages partnerships like IBM for AI hardware, while MX banks on power efficiency for EVs and renewables. Recent momentum favors MX’s post-earnings rally versus ARM’s sector dip, yet ARM’s stability trumps MX’s volatility. Risks include ARM’s lofty valuation amid spending pauses and MX’s losses/competition. Both expose to semis, but ARM leads in AI sentiment.
Tickeron AI Verdict
Tickeron’s AI currently leans toward ARM, given its superior trend consistency, massive scale, and positioning in high-growth AI infrastructure despite recent pullbacks. MX offers tactical upside from earnings momentum and power focus, but higher risks temper its appeal. Observable catalysts like ARM’s product launches suggest stronger probabilistic outperformance in coming quarters.
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 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 Buy and MX is a StrongBuy.
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 whileMX’s FA Score has 1 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- MX’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.
ARM’s TA Score shows that 3 TA indicator(s) are bullish while MX’s TA Score has 3 bullish TA indicator(s).
- ARM’s TA Score: 3 bullish, 5 bearish.
- MX’s TA Score: 3 bullish, 6 bearish.
Price Growth
ARM (@Semiconductors) experienced а -23.94% price change this week, while MX (@Semiconductors) price change was -21.45% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -10.58%. For the same industry, the average monthly price growth was -10.31%, and the average quarterly price growth was +83.46%.
Reported Earning Dates
ARM is expected to report earnings on Jul 29, 2026.
MX is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Semiconductors (-10.58% 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.
| ARM | MX | ARM / MX | |
| Capitalization | 357B | 170M | 210,000% |
| EBITDA | 1.16B | -20.11M | -5,752% |
| Gain YTD | 205.800 | 82.353 | 250% |
| P/E Ratio | 479.67 | N/A | - |
| Revenue | 4.92B | 180M | 2,733% |
| Total Cash | 3.6B | 94.6M | 3,807% |
| Total Debt | 457M | 44.1M | 1,036% |
MX | ||
|---|---|---|
OUTLOOK RATING 1..100 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 28 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | |
SMR RATING 1..100 | 95 | |
PRICE GROWTH RATING 1..100 | 41 | |
P/E GROWTH RATING 1..100 | 47 | |
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 | MX | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 77% | 3 days ago 84% |
| Stochastic ODDS (%) | 3 days ago 87% | 3 days ago 75% |
| Momentum ODDS (%) | 3 days ago 89% | 3 days ago 70% |
| MACD ODDS (%) | 3 days ago 70% | 3 days ago 73% |
| TrendWeek ODDS (%) | 3 days ago 74% | 3 days ago 75% |
| TrendMonth ODDS (%) | 3 days ago 90% | 3 days ago 74% |
| Advances ODDS (%) | 11 days ago 88% | 26 days ago 65% |
| Declines ODDS (%) | 3 days ago 78% | 5 days ago 75% |
| BollingerBands ODDS (%) | 3 days ago 77% | 3 days ago 88% |
| Aroon ODDS (%) | 3 days ago 90% | 3 days ago 58% |
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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% | -3.87% | ||
| LRCX - ARM | 74% Closely correlated | -5.66% | ||
| KLAC - ARM | 74% Closely correlated | -3.93% | ||
| AMAT - ARM | 73% Closely correlated | -6.16% | ||
| FORM - ARM | 73% Closely correlated | -12.11% | ||
| VECO - ARM | 66% Closely correlated | -5.96% | ||
More | ||||
MX and
Correlation & Price change
A.I.dvisor indicates that over the last year, MX has been loosely correlated with ARM. These tickers have moved in lockstep 43% of the time. This A.I.-generated data suggests there is some statistical probability that if MX jumps, then ARM could also see price increases.