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ARM or MCHP or QCOM
Which Stock Would AI Choose? Arm Holdings (ARM) vs. Microchip Technology (MCHP) vs. QUALCOMM Incorporated (QCOM) Stock Comparison
Key Takeaways
- ARM shows robust revenue growth of 26% year-over-year driven by AI and data center demand, with recent gains of around 5% amid positive analyst upgrades, though facing valuation concerns.
- MCHP reports 15.6% revenue growth in recent quarters, signaling recovery in industrial and automotive markets, with mixed short-term performance but longer-term gains of about 20% over the past year.
- QCOM grapples with downgrades and a shrinking smartphone market, posting YTD declines near 24% and analyst targets suggesting further downside, despite AI partnerships.
- ARM leads in AI momentum and relative performance, while MCHP offers recovery potential; QCOM lags due to sector headwinds and competition risks.
- Semiconductor peers highlight ARM's outperformance in recent market activity, with MCHP stabilizing and QCOM under pressure from inventory and demand softness.
- Valuation metrics show ARM at premium multiples tied to growth, MCHP undervalued relative to recovery narrative, and QCOM trading at forward P/E around 12x amid lowered estimates.
Introduction
This stock comparison examines ARM, MCHP, and QCOM, three key players in the semiconductor sector with exposure to AI, mobile, automotive, and industrial applications. These companies represent diverse business models—IP licensing for ARM, analog and microcontroller solutions for MCHP, and wireless chipsets for QCOM—amid shifting market dynamics like AI demand surges and inventory normalization. Traders seeking momentum plays and investors eyeing relative performance in tech-driven growth will find value in analyzing their recent trajectories, sector positioning, and head-to-head contrasts for informed stock comparison decisions.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs energy-efficient CPU architectures and licenses intellectual property to chipmakers, powering over 99% of smartphones and expanding into data centers and AI accelerators. Its royalty-based model generates recurring revenue tied to chip shipments. In recent market activity, ARM has demonstrated strength, with shares rising about 5% in a session following reports of 26% year-over-year revenue growth fueled by AI and data center demand. This outperformed broader tech gains, supported by analyst price target hikes to $140 amid strategic partnerships, though profitability dips and high valuations have tempered sentiment. YTD returns hover around 10-11%, reflecting resilience despite short-term pullbacks of 3-12% over recent weeks. AI tailwinds continue to drive positive momentum.
MCHP Overview and Recent Performance
Microchip Technology Incorporated (MCHP) provides microcontrollers, analog chips, and embedded solutions for industrial, automotive, and consumer markets, emphasizing smart, connected systems. Its fabless model focuses on total system solutions with strong end-market diversity. Recent performance indicates recovery, with Q4 revenue up 15.6% year-over-year to $1.19 billion, beating estimates and prompting raised guidance. Shares have shown volatility, with short-term declines of 7-10% over weeks but 20-22% gains over the past year and positive YTD around 0.5-15% in broader contexts. Strong bookings and inventory reduction to 195-200 days bolster sentiment, though high inventory concerns and underutilization persist amid market normalization.
QCOM Overview and Recent Performance
QUALCOMM Incorporated (QCOM) develops wireless technologies, including Snapdragon processors and modems for smartphones, automotive, and IoT, alongside a licensing business for connectivity IP. Its dual-segment model balances chip sales with royalties. Recent weeks have pressured QCOM, with shares down 1-6% amid downgrades to Sell citing a 10-15% smartphone market contraction, memory crunches, and Apple risks. YTD declines exceed 23%, underperforming peers, despite AI and 6G partnerships and recent revenue beats. Analyst concerns over competition and demand softness have weighed on sentiment, with forward estimates softening.
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Head-to-Head Comparison
ARM, MCHP, and QCOM operate in semiconductors but diverge in models: ARM's pure IP licensing yields high margins (royalty scalability) versus MCHP's MCU/analog manufacturing and QCOM's chipset/licensing hybrid. Growth drivers contrast AI/data center royalties boosting ARM (26% revenue surge) against MCHP's industrial/auto recovery (15.6% growth) and QCOM's softening handsets amid diversification. Recent momentum favors ARM (5% gains, 10% YTD) over MCHP's stabilization (20% 1Y) and QCOM's 24% YTD drop. Risks include ARM's lofty valuations, MCHP's inventory overhang, and QCOM's customer concentration/competition. Sector exposure tilts ARM to AI, MCHP to diversified industrials, QCOM to wireless; sentiment is most bullish on ARM per upgrades, with MCHP undervalued and QCOM sensitive to downgrades.
Tickeron AI Verdict
Tickeron’s AI currently favors ARM based on superior trend consistency in AI-driven revenue growth (26% YoY), recent outperformance versus peers, and stronger relative positioning amid data center catalysts. While MCHP shows recovery stability and QCOM offers diversification potential, ARM's observable momentum and sector tailwinds suggest higher probability of near-term upside in the current environment.
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 whileMCHP’s FA Score has 3 green FA rating(s), and QCOM’s FA Score reflects 2 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- MCHP’s FA Score: 3 green, 2 red.
- QCOM’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 MCHP’s TA Score has 5 bullish TA indicator(s), and QCOM’s TA Score reflects 5 bullish TA indicator(s).
- ARM’s TA Score: 4 bullish, 4 bearish.
- MCHP’s TA Score: 5 bullish, 5 bearish.
- QCOM’s TA Score: 5 bullish, 4 bearish.
Price Growth
ARM (@Semiconductors) experienced а +11.95% price change this week, while MCHP (@Semiconductors) price change was +10.06% , and QCOM (@Semiconductors) price fluctuated +6.36% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +11.63%. For the same industry, the average monthly price growth was +20.79%, and the average quarterly price growth was +24.53%.
Reported Earning Dates
ARM is expected to report earnings on May 06, 2026.
MCHP is expected to report earnings on May 11, 2026.
QCOM is expected to report earnings on Apr 29, 2026.
Industries' Descriptions
@Semiconductors (+11.63% 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 | MCHP | QCOM | |
| Capitalization | 177B | 42.6B | 145B |
| EBITDA | 1.11B | 877M | 14.8B |
| Gain YTD | 52.530 | 24.331 | -19.863 |
| P/E Ratio | 222.31 | 86.21 | 27.46 |
| Revenue | 4.67B | 4.37B | 44.9B |
| Total Cash | 3.54B | 251M | 11.8B |
| Total Debt | 461M | 5.41B | 14.8B |
MCHP | QCOM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 38 | 13 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 14 Undervalued | 9 Undervalued | |
PROFIT vs RISK RATING 1..100 | 88 | 87 | |
SMR RATING 1..100 | 91 | 43 | |
PRICE GROWTH RATING 1..100 | 7 | 61 | |
P/E GROWTH RATING 1..100 | 6 | 14 | |
SEASONALITY SCORE 1..100 | 65 | 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.
QCOM's Valuation (9) in the Telecommunications Equipment industry is in the same range as MCHP (14) in the Semiconductors industry. This means that QCOM’s stock grew similarly to MCHP’s over the last 12 months.
QCOM's Profit vs Risk Rating (87) in the Telecommunications Equipment industry is in the same range as MCHP (88) in the Semiconductors industry. This means that QCOM’s stock grew similarly to MCHP’s over the last 12 months.
QCOM's SMR Rating (43) in the Telecommunications Equipment industry is somewhat better than the same rating for MCHP (91) in the Semiconductors industry. This means that QCOM’s stock grew somewhat faster than MCHP’s over the last 12 months.
MCHP's Price Growth Rating (7) in the Semiconductors industry is somewhat better than the same rating for QCOM (61) in the Telecommunications Equipment industry. This means that MCHP’s stock grew somewhat faster than QCOM’s over the last 12 months.
MCHP's P/E Growth Rating (6) in the Semiconductors industry is in the same range as QCOM (14) in the Telecommunications Equipment industry. This means that MCHP’s stock grew similarly to QCOM’s over the last 12 months.
| ARM | MCHP | QCOM | |
|---|---|---|---|
| RSI ODDS (%) | 3 days ago 79% | 3 days ago 65% | 3 days ago 63% |
| Stochastic ODDS (%) | 3 days ago 74% | 3 days ago 76% | 3 days ago 65% |
| Momentum ODDS (%) | 3 days ago 81% | 3 days ago 62% | 3 days ago 60% |
| MACD ODDS (%) | 3 days ago 86% | 3 days ago 68% | 3 days ago 63% |
| TrendWeek ODDS (%) | 3 days ago 87% | 3 days ago 66% | 3 days ago 64% |
| TrendMonth ODDS (%) | 3 days ago 88% | 3 days ago 64% | 3 days ago 67% |
| Advances ODDS (%) | 3 days ago 86% | 3 days ago 65% | 3 days ago 64% |
| Declines ODDS (%) | 13 days ago 81% | 21 days ago 73% | 13 days ago 73% |
| BollingerBands ODDS (%) | 3 days ago 69% | 3 days ago 72% | 3 days ago 68% |
| Aroon ODDS (%) | N/A | 3 days ago 77% | 3 days ago 68% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| SOXX | 415.71 | 9.76 | +2.40% |
| iShares Semiconductor ETF | |||
| GRX | 9.28 | 0.08 | +0.87% |
| Gabelli Healthcare & Wellness Trust (The) | |||
| DDTO | 22.28 | 0.10 | +0.47% |
| Innovator Eq Dual Drctnl 10 Buf ETF Oct | |||
| ISHG | 76.12 | 0.19 | +0.25% |
| iShares 1-3 Year International TrsBd ETF | |||
| XHYT | 34.11 | -0.01 | -0.04% |
| BondBloxx US HY Telecm Md Tech Sctr ETF | |||
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% | ||
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