BN · rank #11 · 2026-07-21
ARM
NASDAQ · $287.96B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.36 |
|---|---|
| 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. | +13.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +3% |
| Market cap (USD) | $287.96B |
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, server and AI infrastructure, and is now extending into its own AGI CPU and chiplet-based data center silicon.
Rationale
The signal fits a bottleneck-solver thesis because Arm sits at the center of AI compute, memory and interconnect design, with strong revenue growth, margin expansion, low leverage and growing institutional support reinforcing that position.
Material risks
- 1Meta, Microsoft, Oracle and other hyperscalers are collaborating with Arm on AGI CPU and related standards, so customers could internalize more of the value chain or push Arm into a more commoditized platform role.
- 2U.S. export controls plus dependence on TSMC, packaging and memory partners create execution and supply-chain risk for the AGI CPU ramp and could slow the expected AI revenue expansion.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.