BN · rank #14 · 2026-07-23
ARM
NASDAQ · $302.69B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.33 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +35.4% |
| Forward net margin Consensus forward net margin. | +19.2% |
| 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. | 2.22 |
| 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. | +6.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +3% |
| Market cap (USD) | $302.69B |
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 architecture and royalties across mobile and data center, and is now extending into AI infrastructure with the Arm AGI CPU and chiplet/memory-disaggregation initiatives.
Rationale
The quant setup is supported by 35% forward revenue growth, expanding 19% forward net margins, low leverage, and direct exposure to the advanced AI chip packaging and memory bottleneck theme via Meta, Oracle, Microsoft and TSMC collaborations.
Material risks
- 1The biggest thesis risk is that Arm’s move from IP into its own AGI CPU depends on external wafer, advanced packaging and memory partners and could be slowed by supply-chain execution or customer ramp delays.
- 2U.S. export controls and China restrictions could cap high-performance Arm-based AI shipments, while the stock’s 2.22x forward PEG leaves less room for multiple compression if AI enthusiasm cools.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.