BN · rank #20 · 2026-09-07
ARM
NASDAQ · $269.23B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.22 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +36.2% |
| Forward net margin Consensus forward net margin. | +20.4% |
| Net margin TTM Trailing twelve month net margin. | +20.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.99 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.33× |
| Analyst upside Spread between the consensus 12m target and the current price. | +14.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +11% |
| Market cap (USD) | $269.23B |
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 collects royalties on Armv9/Neoverse architectures while expanding into production silicon with its AGI CPU targeting AI data-center memory-bandwidth and latency bottlenecks.
Rationale
The bottleneck-solver thesis is directly reinforced by Arm's AGI CPU addressing sub-100ns latency and DDR5-8800/CXL 3.0 memory constraints, with ~$2B projected 2027-2028 demand, long-term licensing contracts (Apple beyond 2040, hyperscaler design wins), and 36% forward revenue growth providing genuine backlog-backed visibility rather than pure sentiment.
Material risks
- 1Hyperscaler in-house displacement — AWS Graviton, Google Axion, and Microsoft Cobalt are Arm-based today but represent customers building proprietary silicon competency that could reduce royalty-bearing unit counts or negotiate lower per-chip rates as their internal teams mature.
- 2RISC-V has already captured 55% of new embedded/IoT designs and 5% of server share, threatening the royalty base in lower-ASP segments and potentially accelerating into data-center workloads where Arm's AGI CPU pricing power is not yet proven at scale.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.