BN · rank #8 · 2026-07-27
ARM
NASDAQ · $277.71B (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. | +35.4% |
| 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. | 2.14 |
| 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. | +15.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +3% |
| Market cap (USD) | $277.71B |
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 and related IP, monetizing a huge royalty base across smartphones, embedded devices, and increasingly AI/data-center chips with record FY26 revenue and margins.
Rationale
The quant signal fits the bottleneck-solver setup because Arm sits at a structural compute bottleneck for energy-efficient AI silicon, with 35% forward revenue growth, expanding margins, and management confirming Armv9/AGI CPU demand.
Material risks
- 1Customers could shift key designs to in-house architectures or RISC-V, which would directly erode Arm’s royalty moat and long-term licensing power.
- 2AI/data-center CPU IP could commoditize, pressuring Armv9 royalty premiums and reducing the company’s ability to sustain premium growth and margins.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.