BN · rank #11 · 2026-07-20
ARM
NASDAQ · $285.38B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.37 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +35.5% |
| Forward net margin Consensus forward net margin. | +19.3% |
| Net margin TTM Trailing twelve month net margin. | +18.4% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 2.20 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.48× |
| Analyst upside Spread between the consensus 12m target and the current price. | +13.8% |
| Last EPS surprise Most recent reported EPS versus consensus. | +3% |
| Market cap (USD) | $285.38B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Arm Holdings licenses CPU IP and royalties across mobile, data center, automotive and IoT, and is now extending into turnkey AI infrastructure with its Arm AGI CPU and chiplet/memory-disaggregation initiatives.
Rationale
The quant signal fits a bottleneck-solver because Arm sits at the architecture layer for AI compute, with 35.5% forward revenue growth, ~19.3% forward net margin, improving margins, and early traction from AGI CPU plus CSS agreements that can monetize supply-chain constraints in advanced AI silicon.
Material risks
- 1U.S. export-control tightening on advanced AI chips, especially China-related rules, could slow adoption and shipments of Arm-based AI designs and dampen the AGI CPU ramp.
- 2The move from IP licensing into in-house silicon depends on TSMC, Socionext, memory/packaging capacity, and major customers like Meta, Oracle, and Microsoft, creating execution and concentration risk if volume ramps disappoint.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.