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ARM or QCOM or TSEM
Which Stock Would AI Choose? Arm Holdings (ARM) vs. Qualcomm (QCOM) vs. Tower Semiconductor (TSEM) Stock Comparison
Key Takeaways
- ARM benefits from AI-driven CPU demand, with Bank of America raising its price target to $140 amid partnerships, though shares have faced volatility with YTD gains around 9%.
- QCOM struggles with a 21% YTD decline due to memory shortages and Apple modem risks, but automotive and AI edge computing provide diversification.
- TSEM reports record Q4 revenue from silicon photonics and RF infrastructure for AI, with shares up over 200% in the past year despite recent pullbacks.
- Market caps: QCOM ~$143B, ARM ~$128B, TSEM ~$13B; P/E ratios reflect growth premiums: ARM 162x, QCOM 27x, TSEM ~59x.
- All three expose investors to semiconductors and AI, but TSEM's foundry model and recent AI deals show strong momentum in photonics.
Introduction
This stock comparison examines ARM, QCOM, and TSEM, three key players in the semiconductor sector powering AI, mobile, and connectivity advancements. Investors and traders interested in relative performance, sector exposure, and market positioning will find value here, particularly amid AI growth and supply chain shifts. These stocks offer contrasts in business models—from IP licensing to chip design and foundry services—highlighting trade-offs in growth, valuation, and risk in the current environment.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs energy-efficient CPU architectures and licenses IP to chipmakers, dominating mobile and expanding into AI data centers without manufacturing chips. Its royalty-based model ensures recurring revenue as billions of Arm-based devices ship annually. In recent market activity, ARM shares have shown resilience with YTD gains near 9%, supported by AI traction. Bank of America raised its price target to $140, citing partnerships and growth in AI CPUs, though licensing misses and high valuations around 162x P/E have introduced volatility. Sentiment reflects optimism for ecosystem expansion balanced by premium pricing concerns.
QCOM Overview and Recent Performance
Qualcomm Incorporated (QCOM) operates a fabless model, designing Snapdragon processors for mobile, automotive, and IoT while licensing wireless IP like 5G patents. Its dual revenue streams from chips (QCT) and licensing (QTL) provide diversification. Recent weeks have pressured QCOM, with shares down 21% YTD amid memory shortages curbing handset production and Bank of America issuing an Underperform rating over Apple modem risks. Automotive revenues hit records at $1.1B, up 15%, and AI/6G partnerships offer upside, but competition and trade tensions weigh on sentiment at a 27x P/E.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. (TSEM) is a pure-play foundry specializing in analog and mixed-signal chips, including RF, power, sensors, and silicon photonics, across global fabs. It serves fabless firms and IDMs in automotive, industrial, and AI applications. Recent performance shines with record Q4 2025 revenue of $440M, driven by 115% YoY growth in silicon photonics for AI infrastructure. Partnerships with Nvidia, Salience Labs, and others bolster momentum, though shares pulled back ~10% monthly amid broader volatility. Long-term gains exceed 230% annually, fueled by AI demand at ~59x P/E.
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Head-to-Head Comparison
ARM, QCOM, and TSEM share semiconductor exposure but diverge in models: ARM's IP licensing yields high margins and AI royalties but valuation sensitivity (162x P/E, $128B cap); QCOM's fabless design/licensing ($143B cap, 27x P/E) balances mobile risks with auto/AI growth; TSEM's foundry ($13B cap, 59x P/E) thrives on capacity utilization for photonics/RF. Recent momentum favors TSEM (230% 1Y) over ARM (9% YTD) and QCOM (-21% YTD). Risks include supply chains for all, but QCOM faces client loss, ARM competition, and TSEM geopolitical factors. Sentiment tilts to AI catalysts for ARM/TSEM.
Tickeron AI Verdict
Tickeron's AI currently favors TSEM due to consistent trend strength from record revenues, AI photonics catalysts like Nvidia deals, and relative outperformance versus peers' headwinds. While ARM shows AI positioning and QCOM valuation appeal, TSEM's momentum and lower relative risk in foundry utilization suggest higher probability of near-term gains in the semiconductor landscape.
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 whileQCOM’s FA Score has 2 green FA rating(s), and TSEM’s FA Score reflects 2 green FA rating(s).
- ARM’s FA Score: 1 green, 4 red.
- QCOM’s FA Score: 2 green, 3 red.
- TSEM’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 QCOM’s TA Score has 4 bullish TA indicator(s), and TSEM’s TA Score reflects 6 bullish TA indicator(s).
- ARM’s TA Score: 4 bullish, 4 bearish.
- QCOM’s TA Score: 4 bullish, 5 bearish.
- TSEM’s TA Score: 6 bullish, 4 bearish.
Price Growth
ARM (@Semiconductors) experienced а +11.12% price change this week, while QCOM (@Semiconductors) price change was +4.79% , and TSEM (@Semiconductors) price fluctuated +7.17% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +10.22%. For the same industry, the average monthly price growth was +24.75%, and the average quarterly price growth was +27.22%.
Reported Earning Dates
ARM is expected to report earnings on May 06, 2026.
QCOM is expected to report earnings on Apr 29, 2026.
TSEM is expected to report earnings on May 18, 2026.
Industries' Descriptions
@Semiconductors (+10.22% 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 | QCOM | TSEM | |
| Capitalization | 186B | 147B | 25.3B |
| EBITDA | 1.11B | 14.8B | 507M |
| Gain YTD | 60.187 | -19.086 | 91.186 |
| P/E Ratio | 233.47 | 27.73 | 115.72 |
| Revenue | 4.67B | 44.9B | 1.51B |
| Total Cash | 3.54B | 11.8B | 1.22B |
| Total Debt | 461M | 14.8B | 164M |
QCOM | TSEM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 11 | 25 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 86 | 3 | |
SMR RATING 1..100 | 43 | 79 | |
PRICE GROWTH RATING 1..100 | 61 | 34 | |
P/E GROWTH RATING 1..100 | 14 | 3 | |
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.
QCOM's Valuation (9) in the Telecommunications Equipment industry is significantly better than the same rating for TSEM (88) in the Semiconductors industry. This means that QCOM’s stock grew significantly faster than TSEM’s over the last 12 months.
TSEM's Profit vs Risk Rating (3) in the Semiconductors industry is significantly better than the same rating for QCOM (86) in the Telecommunications Equipment industry. This means that TSEM’s stock grew significantly faster than QCOM’s over the last 12 months.
QCOM's SMR Rating (43) in the Telecommunications Equipment industry is somewhat better than the same rating for TSEM (79) in the Semiconductors industry. This means that QCOM’s stock grew somewhat faster than TSEM’s over the last 12 months.
TSEM's Price Growth Rating (34) in the Semiconductors industry is in the same range as QCOM (61) in the Telecommunications Equipment industry. This means that TSEM’s stock grew similarly to QCOM’s over the last 12 months.
TSEM's P/E Growth Rating (3) in the Semiconductors industry is in the same range as QCOM (14) in the Telecommunications Equipment industry. This means that TSEM’s stock grew similarly to QCOM’s over the last 12 months.
| ARM | QCOM | TSEM | |
|---|---|---|---|
| RSI ODDS (%) | 1 day ago 79% | 1 day ago 75% | 1 day ago 69% |
| Stochastic ODDS (%) | 1 day ago 71% | 1 day ago 70% | 1 day ago 56% |
| Momentum ODDS (%) | 1 day ago 81% | 1 day ago 63% | 5 days ago 70% |
| MACD ODDS (%) | 1 day ago 82% | 1 day ago 60% | 6 days ago 80% |
| TrendWeek ODDS (%) | 1 day ago 87% | 1 day ago 64% | 1 day ago 70% |
| TrendMonth ODDS (%) | 1 day ago 88% | 1 day ago 67% | 1 day ago 75% |
| Advances ODDS (%) | 1 day ago 86% | 1 day ago 64% | 7 days ago 68% |
| Declines ODDS (%) | 15 days ago 81% | 15 days ago 73% | 23 days ago 61% |
| BollingerBands ODDS (%) | 1 day ago 77% | 1 day ago 76% | 1 day ago 60% |
| Aroon ODDS (%) | N/A | 1 day ago 67% | 1 day ago 76% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| XLI | 173.90 | 0.39 | +0.22% |
| State Street® IndstrlSelSectSPDR®ETF | |||
| NUSB | 25.26 | 0.01 | +0.02% |
| Nuveen Ultra Short Income ETF | |||
| XHYD | 38.33 | -0.04 | -0.12% |
| BondBloxx US HY Cnsmr N-Cyclcls Sctr ETF | |||
| BTO | 37.66 | -0.06 | -0.16% |
| John Hancock Financial Opportunities Fund | |||
| TMED | 30.61 | -0.16 | -0.51% |
| T. Rowe Price Health Care 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% | +5.02% | ||
| LRCX - ARM | 74% Closely correlated | -1.66% | ||
| KLAC - ARM | 74% Closely correlated | +0.77% | ||
| AMAT - ARM | 73% Closely correlated | -1.34% | ||
| FORM - ARM | 73% Closely correlated | +5.12% | ||
| VECO - ARM | 66% Closely correlated | +8.75% | ||
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TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with AMKR. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then AMKR could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | -0.87% | ||
| AMKR - TSEM | 61% Loosely correlated | +3.07% | ||
| AMBA - TSEM | 60% Loosely correlated | +1.89% | ||
| KLIC - TSEM | 60% Loosely correlated | +1.78% | ||
| KLAC - TSEM | 60% Loosely correlated | +0.77% | ||
| LRCX - TSEM | 60% Loosely correlated | -1.66% | ||
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