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ARM or KLAC or TSM
Which Stock Would AI Choose? Arm Holdings (ARM) vs. KLA Corporation (KLAC) vs. Taiwan Semiconductor Manufacturing (TSM) Stock Comparison
Key Takeaways
- TSM leads with the largest market cap at approximately $1.76 trillion and strong YTD gains around 13%, driven by AI chip demand and revenue growth exceeding 20% quarterly.
- KLAC shows robust one-year performance up over 90%, with revenue up 24% in recent fiscal year, benefiting from semiconductor process control needs amid sector expansion.
- ARM trades at a premium P/E over 140x, reflecting AI positioning but recent volatility with YTD gains near 5%, supported by 24% revenue growth.
- All three face sector headwinds from geopolitical tensions, yet analysts remain bullish with high price targets, especially for TSM and KLAC.
- Relative performance highlights TSM's stability, KLAC's momentum in equipment, and ARM's growth potential in IP licensing.
- Semiconductor bots on Tickeron show strong returns, underscoring AI-driven opportunities in this space.
Introduction
Arm Holdings (ARM), KLA Corporation (KLAC), and Taiwan Semiconductor Manufacturing (TSM) represent key players in the semiconductor ecosystem, spanning IP design, process control equipment, and advanced manufacturing. This comparison analyzes their recent market positioning amid AI-driven demand and sector volatility. Traders seeking exposure to chip innovation and investors eyeing long-term growth in high-performance computing will find value in evaluating their relative performance, valuation sensitivities, and catalysts in the current environment.
ARM Overview and Recent Performance
Arm Holdings plc designs and licenses energy-efficient CPU architectures powering most mobile devices and expanding into AI data centers and autonomous vehicles. In recent market activity, ARM shares have experienced volatility, trading around $114 with a 52-week range of $80 to $183. YTD performance stands at about 5%, underperforming broader indices amid high valuations—P/E exceeds 140x—despite robust 24% quarterly revenue growth to $4.67 billion TTM. Sentiment is bolstered by analyst price target hikes to $140, new partnerships, and AI focus, though regulatory hurdles and rich multiples temper gains.
KLAC Overview and Recent Performance
KLA Corporation supplies process control and yield management solutions critical for semiconductor fabrication. Recent weeks have seen KLAC shares decline around 6% to near $1,345 amid sector sell-offs tied to geopolitical tensions, yet YTD returns exceed 10% with one-year gains over 90%. Market cap nears $187 billion, P/E around 40x, supported by Q2 revenue of $3.3 billion (up 7%) and projected long-term growth. Analysts maintain bullish targets up to $1,809, citing strength in AI infrastructure and advanced packaging, ahead of Investor Day events.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company (TSMC) dominates as the world's largest pure-play foundry, producing advanced chips for AI, smartphones, and high-performance computing. TSM shares recently dipped 4% to $339, with YTD gains of 13% and one-year surge near 94%, backed by a $1.76 trillion market cap. P/E hovers at 32x, reflecting 20.5% quarterly revenue growth to $3.81 trillion TTM. Key drivers include AI demand acceleration, new fab expansions, and strong earnings outlook, though geopolitical risks in Taiwan influence sentiment.
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Head-to-Head Comparison
ARM, KLAC, and TSM anchor the semiconductor value chain: ARM via IP licensing (high-margin, asset-light), KLAC through inspection equipment (cyclical but essential), and TSM as the manufacturing powerhouse (scale-driven). Growth drivers diverge—ARM and TSM ride AI/data center waves, while KLAC benefits from fab expansions. Recent momentum favors TSM’s stability (YTD +13%) over KLAC’s volatility (+10% YTD, +93% 1-yr) and ARM’s pullback (-2% 52-wk). Risks include ARM’s lofty 140x P/E versus TSM’s 32x and KLAC’s 40x; geopolitical exposure hits TSM hardest, equipment cyclicality KLAC, and competition ARM. Sector ties amplify AI sentiment, but TSM’s dominance offers trade-offs in valuation resilience.
Tickeron AI Verdict
Tickeron’s AI currently leans toward TSM for its trend consistency, massive scale, and relative positioning in AI chip production, evidenced by superior YTD stability and revenue momentum amid sector dips. KLAC shows strong short-term upside from equipment demand, while ARM holds catalyst potential. Probabilistic edges favor TSM’s catalysts like fab builds over peers’ volatility.
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
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 whileKLAC’s FA Score has 4 green FA rating(s), and TSM’s FA Score reflects 3 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- KLAC’s FA Score: 4 green, 1 red.
- TSM’s FA Score: 3 green, 2 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 KLAC’s TA Score has 6 bullish TA indicator(s), and TSM’s TA Score reflects 4 bullish TA indicator(s).
- ARM’s TA Score: 4 bullish, 5 bearish.
- KLAC’s TA Score: 6 bullish, 4 bearish.
- TSM’s TA Score: 4 bullish, 5 bearish.
Price Growth
ARM (@Semiconductors) experienced а -0.12% price change this week, while KLAC (@Electronic Production Equipment) price change was +14.53% , and TSM (@Semiconductors) price fluctuated +9.31% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +6.73%. For the same industry, the average monthly price growth was +4.51%, and the average quarterly price growth was +18.06%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +13.41%. For the same industry, the average monthly price growth was +10.75%, and the average quarterly price growth was +91.31%.
Reported Earning Dates
ARM is expected to report earnings on May 06, 2026.
KLAC is expected to report earnings on Apr 23, 2026.
TSM is expected to report earnings on Apr 16, 2026.
Industries' Descriptions
@Semiconductors (+6.73% 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 (+13.41% 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 | KLAC | TSM | |
| Capitalization | 158B | 228B | 1.63T |
| EBITDA | 1.11B | 5.91B | 2.74T |
| Gain YTD | 36.246 | 43.162 | 22.635 |
| P/E Ratio | 198.57 | 50.58 | 35.52 |
| Revenue | 4.67B | 12.7B | 3.81T |
| Total Cash | 3.54B | 5.21B | N/A |
| Total Debt | 461M | 6.11B | N/A |
KLAC | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 27 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 82 Overvalued | 51 Fair valued | |
PROFIT vs RISK RATING 1..100 | 6 | 9 | |
SMR RATING 1..100 | 13 | 26 | |
PRICE GROWTH RATING 1..100 | 4 | 39 | |
P/E GROWTH RATING 1..100 | 15 | 19 | |
SEASONALITY SCORE 1..100 | 50 | 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.
TSM's Valuation (51) in the Semiconductors industry is in the same range as KLAC (82) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's Profit vs Risk Rating (6) in the Electronic Production Equipment industry is in the same range as TSM (9) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
KLAC's SMR Rating (13) in the Electronic Production Equipment industry is in the same range as TSM (26) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
KLAC's Price Growth Rating (4) in the Electronic Production Equipment industry is somewhat better than the same rating for TSM (39) in the Semiconductors industry. This means that KLAC’s stock grew somewhat faster than TSM’s over the last 12 months.
KLAC's P/E Growth Rating (15) in the Electronic Production Equipment industry is in the same range as TSM (19) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
| ARM | KLAC | TSM | |
|---|---|---|---|
| RSI ODDS (%) | 1 day ago 89% | 1 day ago 70% | N/A |
| Stochastic ODDS (%) | 1 day ago 70% | 1 day ago 68% | 1 day ago 58% |
| Momentum ODDS (%) | 1 day ago 84% | 1 day ago 77% | 1 day ago 62% |
| MACD ODDS (%) | 1 day ago 90% | 1 day ago 71% | 1 day ago 80% |
| TrendWeek ODDS (%) | 1 day ago 76% | 1 day ago 73% | 1 day ago 72% |
| TrendMonth ODDS (%) | 1 day ago 88% | 1 day ago 76% | 1 day ago 75% |
| Advances ODDS (%) | 3 days ago 86% | 1 day ago 73% | 4 days ago 71% |
| Declines ODDS (%) | 5 days ago 81% | 13 days ago 62% | 23 days ago 62% |
| BollingerBands ODDS (%) | 1 day ago 65% | 1 day ago 71% | 1 day ago 56% |
| Aroon ODDS (%) | 3 days ago 80% | 1 day ago 75% | 1 day ago 61% |
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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% | -0.58% | ||
| LRCX - ARM | 74% Closely correlated | +1.89% | ||
| KLAC - ARM | 74% Closely correlated | +0.58% | ||
| AMAT - ARM | 73% Closely correlated | +0.42% | ||
| FORM - ARM | 73% Closely correlated | +2.25% | ||
| TSM - ARM | 66% Closely correlated | +1.40% | ||
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KLAC and
Correlation & Price change
A.I.dvisor indicates that over the last year, KLAC has been closely correlated with LRCX. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if KLAC jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To KLAC | 1D Price Change % | ||
|---|---|---|---|---|
| KLAC | 100% | +0.58% | ||
| LRCX - KLAC | 89% Closely correlated | +1.89% | ||
| AMAT - KLAC | 87% Closely correlated | +0.42% | ||
| NVMI - KLAC | 80% Closely correlated | +0.40% | ||
| ASML - KLAC | 79% Closely correlated | +2.05% | ||
| ADI - KLAC | 79% Closely correlated | -0.35% | ||
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