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ARM or TEL or TSM
Which Stock Would AI Choose? Arm Holdings plc (ARM) vs. TE Connectivity plc (TEL) vs. Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock Comparison
Key Takeaways
- ARM leads YTD performance at 19.38% with strong AI CPU momentum but trades at a lofty P/E of 176x amid regulatory scrutiny.
- TEL shows balanced growth with 13.66% YTD gains, bolstered by a 10% dividend hike and $3B buyback expansion targeting AI data centers.
- TSM dominates market cap at $1.71T with robust 88.60% one-year returns, driven by AI chip demand despite geopolitical risks.
- All three benefit from AI tailwinds, but TSM's scale and foundry leadership provide the most consistent relative performance in recent market activity.
- Valuation contrasts highlight TEL's stability (P/E 28x) versus high-growth premiums for ARM and TSM.
- Sentiment favors AI exposure, with analyst upgrades for ARM and TSM, while TEL emphasizes shareholder returns.
Introduction
Arm Holdings plc (ARM), TE Connectivity plc (TEL), and Taiwan Semiconductor Manufacturing Company Limited (TSM) represent key players in the semiconductor and connectivity ecosystem, particularly amid surging AI demand. This stock comparison evaluates their business models, recent performance, and market positioning in the current environment. Traders seeking high-growth AI exposure and investors focused on stable industrials with tech upside will find value in analyzing relative momentum, valuation sensitivity, and sector catalysts driving these stocks' trajectories.
ARM Overview and Recent Performance
Arm Holdings plc (ARM) designs and licenses energy-efficient CPU architectures powering mobile devices, servers, and AI applications worldwide. In recent market activity, ARM shares have demonstrated resilience, posting 19.38% YTD gains amid analyst upgrades from HSBC and others citing AI CPU growth potential. Momentum stems from Armv9 adoption in premium smartphones and data centers, though a Malaysian corruption probe introduces short-term uncertainty. Trading around $132 with a $141B market cap and elevated P/E of 176x, sentiment reflects optimism for AI ecosystem expansion balanced against near-term headwinds.
TEL Overview and Recent Performance
TE Connectivity plc (TEL) manufactures connectivity and sensor solutions for automotive, industrial, and data center applications across global markets. Recent weeks have seen positive developments, including a 10% quarterly dividend increase to $0.78 per share and a $3 billion buyback program expansion, signaling financial strength. Shares reflect 13.66% YTD returns, driven by AI data center demand despite cyclical risks in automotive and industrials. With a $57B market cap and P/E of 28x, TEL benefits from diversified exposure and shareholder-friendly moves, maintaining steady performance relative to peers.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company Limited (TSM), the world's leading pure-play foundry, produces advanced chips for AI, high-performance computing, and consumer electronics. Recent activity highlights 10.21% YTD and 88.60% one-year gains, fueled by over 30% revenue growth from AI clients like NVIDIA. Advanced nodes like 3nm drive expansion, with capex plans underscoring capacity builds. At $329 per share, $1.71T market cap, and P/E of 32x, TSM's dominance persists amid geopolitical tensions, supported by strong margins and market share exceeding 60%.
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Head-to-Head Comparison
ARM, TEL, and TSM share AI-driven growth but diverge in models: ARM's IP licensing offers high margins with royalty leverage, contrasting TSM's capital-intensive foundry scale and TEL's hardware focus on connectors/sensors. Recent momentum favors ARM (19% YTD) over TSM (10%) and TEL (14%), though TSM excels in one-year returns. Risks include ARM's regulatory probes, TSM's geopolitics, and TEL's cyclical demand. Valuation sensitivity is highest for ARM (P/E 176x), moderate for TSM (32x), and attractive for TEL (28x). Sector exposure tilts TSM/ ARM toward pure AI semis, TEL toward industrials with data center upside; sentiment leans bullish on AI catalysts across all.
Tickeron AI Verdict
Tickeron’s AI currently favors TSM due to its unmatched scale, consistent trend strength in AI chip production, and relative stability amid sector volatility. Observable factors like 88% one-year gains, dominant market share, and robust revenue growth from advanced nodes position it probabilistically ahead, though ARM's upside potential warrants monitoring.
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 whileTEL’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.
- TEL’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 TEL’s TA Score has 6 bullish TA indicator(s), and TSM’s TA Score reflects 5 bullish TA indicator(s).
- ARM’s TA Score: 4 bullish, 4 bearish.
- TEL’s TA Score: 6 bullish, 4 bearish.
- TSM’s TA Score: 5 bullish, 5 bearish.
Price Growth
ARM (@Semiconductors) experienced а +11.95% price change this week, while TEL (@Electronic Components) price change was +7.12% , and TSM (@Semiconductors) price fluctuated -0.03% 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%.
The average weekly price growth across all stocks in the @Electronic Components industry was +4.81%. For the same industry, the average monthly price growth was +11.15%, and the average quarterly price growth was +27.53%.
Reported Earning Dates
ARM is expected to report earnings on May 06, 2026.
TEL is expected to report earnings on Apr 22, 2026.
TSM is expected to report earnings on Jul 16, 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.
@Electronic Components (+4.81% weekly)The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
| ARM | TEL | TSM | |
| Capitalization | 177B | 72.2B | 1.67T |
| EBITDA | 1.11B | 4.47B | 2.74T |
| Gain YTD | 52.530 | 8.520 | 22.602 |
| P/E Ratio | 222.31 | 35.47 | 31.83 |
| Revenue | 4.67B | 18.1B | 3.81T |
| Total Cash | 3.54B | 1.25B | N/A |
| Total Debt | 461M | 5.71B | N/A |
TEL | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 39 | 26 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 26 Undervalued | 46 Fair valued | |
PROFIT vs RISK RATING 1..100 | 18 | 9 | |
SMR RATING 1..100 | 51 | 26 | |
PRICE GROWTH RATING 1..100 | 10 | 39 | |
P/E GROWTH RATING 1..100 | 16 | 20 | |
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.
TEL's Valuation (26) in the Electronic Components industry is in the same range as TSM (46) in the Semiconductors industry. This means that TEL’s stock grew similarly to TSM’s over the last 12 months.
TSM's Profit vs Risk Rating (9) in the Semiconductors industry is in the same range as TEL (18) in the Electronic Components industry. This means that TSM’s stock grew similarly to TEL’s over the last 12 months.
TSM's SMR Rating (26) in the Semiconductors industry is in the same range as TEL (51) in the Electronic Components industry. This means that TSM’s stock grew similarly to TEL’s over the last 12 months.
TEL's Price Growth Rating (10) in the Electronic Components industry is in the same range as TSM (39) in the Semiconductors industry. This means that TEL’s stock grew similarly to TSM’s over the last 12 months.
TEL's P/E Growth Rating (16) in the Electronic Components industry is in the same range as TSM (20) in the Semiconductors industry. This means that TEL’s stock grew similarly to TSM’s over the last 12 months.
| ARM | TEL | TSM | |
|---|---|---|---|
| RSI ODDS (%) | 3 days ago 79% | 3 days ago 52% | 3 days ago 57% |
| Stochastic ODDS (%) | 3 days ago 74% | 3 days ago 42% | 3 days ago 77% |
| Momentum ODDS (%) | 3 days ago 81% | 3 days ago 59% | 3 days ago 67% |
| MACD ODDS (%) | 3 days ago 86% | 3 days ago 73% | 3 days ago 68% |
| TrendWeek ODDS (%) | 3 days ago 87% | 3 days ago 56% | 3 days ago 65% |
| TrendMonth ODDS (%) | 3 days ago 88% | 3 days ago 53% | 3 days ago 75% |
| Advances ODDS (%) | 3 days ago 86% | 3 days ago 59% | 12 days ago 71% |
| Declines ODDS (%) | 13 days ago 81% | 21 days ago 51% | 4 days ago 62% |
| BollingerBands ODDS (%) | 3 days ago 69% | 3 days ago 56% | 3 days ago 58% |
| Aroon ODDS (%) | N/A | 3 days ago 50% | 3 days ago 67% |
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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% | +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% | ||
More | ||||
TEL and
Correlation & Price change
A.I.dvisor indicates that over the last year, TEL has been closely correlated with APH. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if TEL jumps, then APH could also see price increases.