Quick verdict: AMD vs ARM in 2026

In the current AMD vs ARM stock comparison for 2026, Advanced Micro Devices (AMD) appears to hold a quantitative edge across several fundamental and valuation metrics. AMD showcases stronger revenue growth and more favorable valuation ratios, positioning it as a potential growth and value leader compared to Arm Holdings. While ARM demonstrates superior profitability margins and a slightly higher analyst “Buy” rating percentage, AMD’s lower valuation multiples and relatively less negative price target and DCF discrepancies make it stand out. Not investment advice.

AMD vs ARM: key metrics side by side

Full side-by-side comparison of AMD and ARM across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

AMD vs ARM valuation comparison

When considering AMD vs ARM valuation in 2026, AMD appears considerably more attractive on several key metrics. Advanced Micro Devices trades at a P/E ratio of 126.76x, which, while high, is significantly lower than Arm Holdings’ P/E ratio of 267.41x. This indicates that investors are paying a much higher premium for each dollar of ARM’s earnings compared to AMD. Similarly, AMD’s price-to-book (P/B) ratio of 8.72x is substantially less than ARM’s elevated 27.47x, further suggesting AMD is relatively cheaper based on its tangible assets.

Furthermore, a Discounted Cash Flow (DCF) analysis suggests that both stocks are trading above their intrinsic value, which is common for high-growth technology companies. However, AMD’s implied DCF downside is -80.8%, indicating it is less overvalued by this model than ARM, which shows a staggering -96.0% DCF downside. These figures collectively suggest that for investors prioritizing a more conservative valuation within the high-growth technology sector, AMD presents a more compelling case than ARM based on current fundamentals.

AMD vs ARM growth comparison

In terms of growth, AMD demonstrates stronger momentum. Advanced Micro Devices reported an impressive year-over-year revenue growth of 34.3%, significantly outpacing Arm Holdings’ revenue growth of 23.9%. This substantial difference in top-line expansion indicates that AMD is currently expanding its market share and revenue base at a faster rate, appealing to investors focused on dynamic business expansion in the competitive semiconductor landscape.

With revenue of $34.64 billion, AMD also operates on a much larger scale than ARM, which reported $4.01 billion in revenue. Despite its larger size, AMD has managed to achieve a higher percentage growth, showcasing its ability to continue scaling effectively. While both companies operate in high-growth areas like AI and data centers, AMD’s current figures suggest a more robust immediate growth trajectory. This makes AMD a strong contender for investors looking for aggressive revenue expansion in the technology sector.

AMD vs ARM profitability

Examining the AMD vs ARM profitability, Arm Holdings exhibits superior net and EBITDA margins. ARM boasts a net margin of 17.15% and an EBITDA margin of 22.41%, indicating a more efficient conversion of revenue into profit. In contrast, AMD’s net margin stands at 12.51% and its EBITDA margin at 21.03%. While AMD’s margins are healthy, ARM’s asset-light licensing model allows it to achieve higher profitability percentages.

However, when it comes to Free Cash Flow (FCF) yield, AMD takes the lead with 1.23% compared to ARM’s 0.45%. This suggests that AMD generates a higher percentage of its market capitalization in free cash flow, which is crucial for reinvestment, debt reduction, or shareholder returns. Both companies have an N/A% for Return on Equity (ROE), indicating either negative equity or very recent financial restructuring that makes the metric not readily comparable or relevant in the provided data. Overall, ARM shows higher operational efficiency on paper, while AMD offers a better FCF yield for investors seeking cash-generating power.

Analyst ratings: AMD vs ARM

When we look at analyst sentiment for AMD vs ARM in 2026, both companies receive a “Buy” consensus from the analysts covering them. However, there are nuances in their recommendations. Arm Holdings has a slightly higher percentage of “Buy” ratings, with 74.1% of 27 analysts recommending it as a “Buy.” This suggests a strong conviction from a smaller group of analysts. Their consensus price target for ARM is $163.75, which currently implies a significant -18.8% downside from its current price of $201.69.

Advanced Micro Devices, with a larger analyst following of 70, has 67.1% of analysts rating it a “Buy.” Despite a slightly lower percentage, AMD’s consensus price target of $310.86 implies a less severe -7.8% downside from its current price of $337.11. This indicates that while more analysts are bullish on ARM, the implied downside from current levels according to their price targets is less pronounced for AMD. Investors should note these target prices are forecasts and not guarantees.

Should I buy AMD or ARM stock in 2026?

Deciding whether should I buy AMD or ARM stock in 2026 depends heavily on an investor’s specific priorities. For growth-oriented investors, AMD currently presents a more compelling case. With a revenue growth of 34.3% year-over-year, AMD is expanding its top line significantly faster than ARM’s 23.9%. This higher growth rate, coupled with its larger revenue base of $34.64 billion, suggests AMD has stronger operational momentum and greater potential for market share capture, especially with its diversified product portfolio across CPUs, GPUs, and adaptive SoCs.

For value investors, AMD also appears to be the more attractive option. While both stocks trade at high valuations typical for the technology sector, AMD’s P/E ratio of 126.76x and P/B ratio of 8.72x are considerably lower than ARM’s P/E of 267.41x and P/B of 27.47x. This indicates that AMD offers a comparatively less stretched valuation relative to its earnings and book value. Furthermore, the DCF analysis points to less implied overvaluation for AMD (-80.8% downside) compared to ARM (-96.0% downside), suggesting a slightly better entry point for those concerned with long-term intrinsic value.

Neither AMD nor ARM are suitable choices for income-focused investors, as both companies currently have a dividend yield of 0%. Both are high-growth technology stocks that prioritize reinvesting earnings back into the business for future expansion rather than distributing profits to shareholders. Therefore, if income generation is a primary objective, investors should look elsewhere. This is not investment advice; please conduct your own thorough research.

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