Quick verdict: ARM vs INTC in 2026

Overall, Arm Holdings plc (ARM) exhibits a clear operational advantage over Intel Corporation (INTC) in 2026, primarily driven by its superior revenue growth and robust profitability metrics. ARM stands out as the growth leader with its strong top-line expansion and also the margin leader, showcasing efficient operations. While INTC’s lower P/B ratio might suggest a value play, ARM is undeniably the analyst favorite, receiving a much higher percentage of “Buy” ratings and consensus, despite both stocks facing significant negative DCF and price target upsides. Not investment advice.

ARM vs INTC: key metrics side by side

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

ARM vs INTC valuation comparison

The ARM vs INTC valuation reveals stark differences in how the market prices these technology giants. Arm Holdings plc trades at an extremely high P/E ratio of 267.41x and a P/B ratio of 27.47x. These elevated multiples reflect strong market expectations for its future growth and its dominant position in chip intellectual property licensing, indicating that investors are willing to pay a significant premium for its potential. In contrast, Intel Corporation’s P/E ratio stands at a negative -151.74x, signaling current unprofitability, while its P/B ratio is a much more modest 4.32x.

When considering the intrinsic value through discounted cash flow (DCF) models, both ARM and INTC appear significantly overvalued relative to their calculated fair values. ARM shows a DCF upside of -96.0%, meaning its current price is substantially higher than its DCF estimate. Similarly, INTC’s DCF upside is -92.1%, also indicating a substantial premium. While INTC’s P/B ratio suggests it’s “cheaper” on an asset-per-share basis compared to ARM, its negative P/E highlights fundamental profitability concerns rather than genuine value. This makes a direct “cheaper” comparison challenging based solely on P/E, but INTC’s lower P/B is notable.

ARM vs INTC growth comparison

In terms of growth, Arm Holdings plc demonstrates significantly stronger momentum compared to Intel Corporation. ARM reported an impressive year-over-year revenue growth of 23.9%, highlighting robust demand for its advanced chip designs and licensing model, particularly as the semiconductor industry expands into new areas like AI and IoT. This substantial growth rate underscores ARM’s ability to capture market opportunities and expand its revenue base efficiently from its current $4.01 billion.

Conversely, Intel Corporation has struggled with top-line expansion, reporting a near-stagnant revenue growth of -0.5% year-over-year. While INTC operates on a much larger revenue base of $52.85 billion, this minimal growth indicates significant challenges in its core processor markets and its efforts to diversify. ARM’s superior revenue growth, coupled with a healthy net margin of 17.15% and an EBITDA margin of 22.41%, positions it as the clear leader in growth, demonstrating a strong ability to translate revenue into profit, unlike INTC which reported a negative net margin of -5.9%.

ARM vs INTC profitability

When comparing ARM vs INTC profitability, Arm Holdings plc stands out as the significantly more profitable entity. ARM boasts a strong net margin of 17.15%, which is a testament to its highly scalable and asset-light business model focused on licensing intellectual property. This positive margin indicates efficient cost management and a healthy bottom line, allowing the company to retain a substantial portion of its revenue as profit. Furthermore, ARM’s EBITDA margin of 22.41% underscores its robust operational efficiency before accounting for non-operating expenses.

In stark contrast, Intel Corporation recorded a negative net margin of -5.9%, indicating that the company is currently operating at a loss. This highlights the severe challenges INTC faces in its manufacturing and product segments, impacting its ability to generate sustainable profits. While INTC’s EBITDA margin of 21.21% is relatively close to ARM’s, suggesting some underlying operational capability, the negative net margin and a negative free cash flow (FCF) yield of -0.66% (compared to ARM’s positive 0.45%) clearly show that ARM is generating more cash and is fundamentally more profitable than INTC, which is currently consuming cash. Neither company reports a calculable ROE at this time (N/A%).

Analyst ratings: ARM vs INTC

Analyst sentiment heavily favors Arm Holdings plc over Intel Corporation. Out of 27 analysts covering ARM, a robust 74.1% recommend a “Buy,” leading to a strong “Buy” consensus. This widespread positive outlook suggests confidence in ARM’s long-term prospects and strategic position in the semiconductor ecosystem. However, despite the high “Buy” rating, the consensus price target for ARM is $163.75, which represents an -18.8% downside from its current price of $201.69, indicating that analysts believe the stock is currently trading above its fair value.

Intel Corporation, on the other hand, garners a more cautious reception from analysts. With a much larger analyst coverage of 83, only 34.9% recommend a “Buy,” resulting in an overall “Hold” consensus. This less enthusiastic stance reflects ongoing concerns about INTC’s turnaround efforts, competitive pressures, and profitability challenges. The consensus price target for INTC is $74.82, implying a -21.0% downside from its current price of $94.75. Although both companies face projected price target downsides, the significantly higher percentage of “Buy” ratings for ARM clearly demonstrates that analysts generally prefer ARM’s growth potential and business model.

Should I buy ARM or INTC stock in 2026?

For growth investors looking for exposure to high-growth segments of the semiconductor industry, Arm Holdings plc (ARM) presents a more compelling narrative in 2026. Its impressive 23.9% year-over-year revenue growth and solid net margin of 17.15% indicate a thriving business model that is capturing market share and driving innovation. ARM is foundational to many rapidly expanding markets, including AI, mobile, and IoT, which positions it for continued expansion. However, this potential comes at a steep price, with a P/E ratio of 267.41x and a significant -96.0% DCF upside, suggesting that much of this future growth is already factored into its current stock price.

Value investors will find both ARM and INTC challenging in 2026 due to their current valuations against intrinsic value. While Intel Corporation (INTC) boasts a considerably lower P/B ratio of 4.32x compared to ARM’s 27.47x, its negative P/E ratio of -151.74x and a negative net margin of -5.9% highlight fundamental profitability issues rather than genuine undervaluation. Both stocks are priced significantly above their discounted cash flow estimates, with INTC having a -92.1% DCF upside. This suggests that neither stock offers a clear “value” proposition based on current financial health and future cash flow projections, requiring investors to weigh potential turnaround stories against high uncertainty.

For investors prioritizing income, neither ARM nor INTC are suitable choices in 2026, as both companies currently offer a 0% dividend yield. Therefore, those seeking regular dividend payouts should look elsewhere. The decision of whether to buy ARM or INTC stock hinges on an investor’s specific objectives and risk tolerance: ARM offers high growth potential at a premium valuation, while INTC represents a turnaround story with significant challenges but a relatively lower asset-based valuation. This is not investment advice; always conduct thorough personal research.

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