How this ARM vs MU comparison is calculated

All metrics are based on trailing twelve months (TTM) financial data, consensus analyst estimates, and standardized valuation ratios. Data is sourced from Financial Modeling Prep and SEC EDGAR. Figures are normalized to ensure a fair comparison between Arm Holdings plc American Depositary Shares and Micron Technology, Inc.. Analyst price targets and ratings are aggregated from Wall Street consensus as of 2026-05-26.

Quick verdict: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc. in 2026

Micron Technology, Inc. demonstrates superior revenue expansion, with its topline growth significantly outpacing that of Arm Holdings plc American Depositary Shares. In terms of valuation, MU stock presents a more compelling picture with considerably lower earnings multiples and a less drastic DCF implied downside compared to ARM. Micron Technology, Inc. also leads in operational efficiency, boasting higher net and EBITDA margins, along with a stronger Free Cash Flow yield than Arm Holdings plc American Depositary Shares. Not investment advice.

Arm Holdings plc American Depositary Shares vs Micron Technology, Inc.: key metrics side by side

A full side-by-side look at Arm Holdings plc American Depositary Shares (ARM) and Micron Technology, Inc. (MU) across earnings multiples, profitability, revenue momentum, and analyst sentiment — data updated 2026-05-26.

Relative valuation: ARM vs MU

Arm Holdings plc American Depositary Shares’ earnings multiple stands at an extraordinary 360.42x, indicating exceptionally high market expectations for its future profit generation. In stark contrast, Micron Technology, Inc. trades at a P/E ratio of 35.04x, which, while not low in absolute terms, appears substantially more grounded when placed against its peer. This significant price-to-earnings gap suggests that investors are pricing in a much higher growth premium for ARM, making it a considerably more expensive equity on a per-earnings basis based on current consensus data.

Further examining their relative valuation, the price-to-book multiple for ARM stock is a robust 39.32x, suggesting that its market capitalization is nearly 40 times its book value. Micron Technology, Inc. registers a price-to-book metric of 11.66x, representing a notable fundamental discount compared to its competitor. The discounted cash flow (DCF) models also highlight a considerable divergence, with Arm Holdings plc American Depositary Shares’ current price exceeding its DCF valuation by an alarming -97.7%, suggesting profound overvaluation according to this intrinsic value method. For MU, the implied DCF downside is a more moderate -40.6%, still indicating overvaluation but to a lesser degree than ARM. Consequently, an investor seeking a more attractive entry point based on traditional valuation metrics might find Micron Technology, Inc. to be the more favorable choice.

Revenue momentum: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc.

When assessing topline expansion, Micron Technology, Inc. has demonstrated a more vigorous pace, reporting year-over-year revenue growth of an impressive +48.9%. This substantial increase reflects strong demand for MU’s memory and storage solutions, a key driver in the current technology landscape. Conversely, Arm Holdings plc American Depositary Shares, while still experiencing healthy expansion, posted a revenue growth figure of +22.8%. While a respectable number, it doesn’t quite match the accelerated trajectory seen with Micron Technology, Inc. This gap in recent revenue momentum highlights a differing operational backdrop or market position between the two semiconductor players.

Beyond just the top-line figures, an examination of operational efficiency reveals a further distinction. MU records a robust EBITDA margin of 63.91%, signifying excellent control over its operating expenses relative to its revenue generation. Arm Holdings plc American Depositary Shares, on the other hand, operates with an EBITDA margin of 27.74%. While commendable, ARM’s margin profile suggests a different cost structure or business model compared to its peer. Investors focusing on companies with rapid sales increases and strong operational leverage might view Micron Technology, Inc. as possessing a stronger growth trajectory; however, this gap may not persist indefinitely as market conditions and competitive landscapes evolve.

Profitability and cash generation: ARM vs MU

Examining the core profitability metrics, Micron Technology, Inc. exhibits a significantly higher net margin of 41.49%, indicating that a substantial portion of its revenue effectively translates into net profit. This robust figure underscores MU’s operational efficiency and pricing power within its segment. In contrast, Arm Holdings plc American Depositary Shares reported a net margin of 18.37%, a healthy margin but less than half that achieved by Micron Technology, Inc. This fundamental divergence in net profitability suggests that ARM is currently less effective at converting sales into bottom-line earnings compared to its competitor.

When it comes to cash conversion, the Free Cash Flow (FCF) yield provides further insight. Micron Technology, Inc. boasts an FCF yield of 1.21%, signifying its ability to generate cash flow relative to its market capitalization. ARM, in comparison, shows a lower FCF yield of 0.3%. This suggests that MU stock is generating more free cash flow per share, which is crucial for funding future growth initiatives, debt reduction, or shareholder returns. Both companies, however, did not report a quantifiable Return on Equity (ROE), leaving this metric as N/A% for both Arm Holdings plc American Depositary Shares and Micron Technology, Inc., thus limiting direct comparison on this specific measure of shareholder returns.

Wall Street view: Arm Holdings plc American Depositary Shares vs Micron Technology, Inc. analyst ratings

Wall Street analysts generally hold a positive outlook for both technology companies, with a ‘Buy’ consensus rating for both Arm Holdings plc American Depositary Shares and Micron Technology, Inc. However, the degree of bullishness varies. A higher percentage of analysts, specifically 81.4%, recommend buying MU stock, suggesting a stronger collective confidence in its near-term prospects. For ARM, 74.1% of analysts have issued a buy rating, indicating a solid, but slightly less overwhelming, endorsement. This slight preference for Micron Technology, Inc. hints at potentially more favorable market dynamics or business catalysts anticipated for MU.

Delving into price targets, analysts foresee a downside for both companies from their current trading levels. The consensus target price for Arm Holdings plc American Depositary Shares is $192.22, implying a significant potential decline of -37.3% from its current price. For Micron Technology, Inc., the average price target stands at $499.68, suggesting a smaller, though still notable, anticipated pullback of -33.5%. This indicates that while both stocks are seen as currently trading above their fundamental valuations by analysts, MU’s current market price is perceived as less extended than that of ARM. Investors should note that these targets may vary depending on future estimate revisions and shifts in market sentiment.

Which investor profile fits ARM vs MU?

For a growth-oriented investor, the choice between Arm Holdings plc American Depositary Shares and Micron Technology, Inc. involves weighing different aspects of expansion. MU stock presents a more compelling picture with a revenue growth rate of +48.9%, significantly outstripping ARM’s +22.8%. This accelerated topline expansion, combined with a much higher EBITDA margin of 63.91% for Micron Technology, Inc. versus 27.74% for Arm Holdings plc American Depositary Shares, suggests stronger operational leverage and a more robust growth trajectory. While both companies operate in high-growth technology sectors, MU’s recent performance indicates a more aggressive expansion phase, making it potentially more attractive for those prioritizing rapid revenue and operational profit increases.

A value investor, scrutinizing earnings multiples and intrinsic value, would likely find Micron Technology, Inc. to be the more appealing proposition. ARM commands an exceptionally high P/E ratio of 360.42x, pointing to substantial future growth already being priced into the stock. Its Price-to-Book ratio of 39.32x further underlines this premium. In contrast, MU stock trades at a considerably more modest earnings multiple of 35.04x and a P/B of 11.66x. The discounted cash flow analysis further strengthens MU’s case for value, with a projected DCF downside of -40.6% versus an extremely pronounced -97.7% for Arm Holdings plc American Depositary Shares, indicating that ARM is profoundly overvalued by this metric. Therefore, for investors seeking a more favorable entry point based on current fundamentals and a lower valuation multiple, Micron Technology, Inc. appears to offer a stronger value proposition.

For income-focused investors, neither Arm Holdings plc American Depositary Shares nor Micron Technology, Inc. would be a suitable choice. Both ARM and MU currently offer a dividend yield of 0%, meaning they do not distribute any portion of their earnings directly back to shareholders in the form of dividends. Companies often retain all earnings to reinvest in growth, particularly in the technology sector where innovation and expansion are paramount. Consequently, those seeking regular income streams from their stock holdings will need to look elsewhere. This is not investment advice. Always do your own research.

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Arm Holdings plc American Depositary Shares (ARM) full stock analysis · Micron Technology, Inc. (MU) full stock analysis · All stock comparisons