ARM vs AMAT Stock Comparison
AMAT currently leads ARM in this stock comparison, with AIQ scores of 45 vs 37. The clearest difference is quality.
What is the main difference between ARM and AMAT?
AMAT leads the current stock comparison as Applied Materials, Inc., with the clearest separation coming from quality and the broader AIQ evidence mix.
AlgovestIQ AIQ Comparison
Arm Holdings plc American Depositary Shares vs Applied Materials, Inc.
AMAT leads
AMAT leads by 8 AIQ points, primarily on Quality and Value, but the lead has narrowed from 12 points over 30 sessions. Wall Street currently favors ARM on target upside.
Fragile: 4 of 6 evidence groups support AMAT, its lead is narrowing, and its current signal state is conflicted.
Arm Holdings plc American Depositary Shares
Applied Materials, Inc.
The Algovestiq AIQ Score currently favors AMAT over ARM, 45 versus 37 as of Oct 21, 2026. AMAT's advantage is driven primarily by stronger quality and value. AMAT also shows the stronger technical structure relative to its 50-day moving average, though analyst target upside currently favors ARM. 4 of 6 covered evidence groups favor AMAT today, and the comparison is rated Fragile on stability: the leader's advantage has been narrowing. AMAT lead: Weakening — the AIQ differential moved from 12 to 8 points over 30 sessions.
Compare Arm Holdings plc American Depositary Shares and Applied Materials, Inc. across the Algovestiq AIQ Score, valuation, quality, momentum, risk, technicals and analyst expectations.
Performance over time
Total return with distributions reinvested, from daily closes.
Total return comparison
Growth of $10,000, distributions reinvested
Split-adjusted closes; each distribution is reinvested at the close on its ex-dividend date. Taxes and trading costs are not modeled.
Compare ARM and AMAT against another ticker
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AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Quality72 vs 88AMAT +16
- Value24 vs 32AMAT +8
- Risk Resilience39 vs 45AMAT +6
- Momentum8 vs 8Even
4 of 6 evidence groups favor AMAT. AMAT’s edge is concentrated in quality and value.
What changed since the last close
Latest scored session 2026-10-20, compared against the prior scored session 2026-10-19.
Largest factor move: Momentum -7
No signal started or stopped since the prior session; its 6 active signals are unchanged.
No factor moved materially.
No signal started or stopped since the prior session; its 6 active signals are unchanged.
AMAT's lead widened by 1 AIQ point in the latest session.
Deeper signal detail for each name lives on its own signals page — ARM and AMAT both carry a full feed there.
The central trade-off
AMAT (Applied Materials, Inc.): the stronger current systematic profile, led by quality and value.
ARM (Arm Holdings plc American Depositary Shares): the counter-case, on technicals, analyst expectations — but at materially higher volatility, 62.8% against 45.5%.
The AIQ Score and Wall Street therefore point in different directions on this pair.
Which one fits your objective
The same two names rank differently depending on what you are optimizing for. All six reads are shown at once — none of them is hidden behind a toggle.
Balanced
AMATAMAT on the overall AIQ Score, which weights Quality and Value most heavily.
Growth
AMATAMAT on combined revenue and EPS growth.
Value
AMATAMAT on the peer-relative Value factor, by 8 points.
Momentum
EvenThe two are level on Momentum.
Lower downside
AMATAMAT on Risk Resilience, by 6 points.
Analyst upside
ARMARM on implied upside to the consensus price target.
AIQ vs Wall Street
The model and the Street disagree here: AIQ favors AMAT, analyst targets favor ARM. That disagreement is the most useful thing on this page.
| Measure | ARM | AMAT | Note |
|---|---|---|---|
| Implied upside to target | +62.6% | +49.5% | ARM has more room |
| Target dispersion | +106.1% | +68.7% | Lower is tighter analyst agreement |
| Consensus | Buy | Buy | Context, not a primary driver |
| Analysts covering | 12 | 24 | Higher coverage generally improves confidence |
The two are measuring different things. The AIQ Score reads current fundamentals, valuation, trend and risk; analyst targets price forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something already priced in — it is worth resolving before acting on either.
Analyst targets are expectations, not predictions. Dispersion matters as much as the midpoint.
AIQ Agreement Matrix
4 of 6 covered evidence groups favor AMAT. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | AMAT | 37 vs 45 |
| Fundamentals | AMATon balance | revenue growth -13.5% vs 15.2%; EPS growth -13.8% vs -9.3%; TTM ROE 13% vs 40.4%; gross margin 95.3% vs 49.4%; operating margin 17.3% vs 30.5% — AMAT takes 4 of 5 decided legs, not all of them |
| Valuation | AMAT | Value 24 vs 32 |
| Technicals | ARM | Price vs 50-day -14.8% vs -14.3%; vs 200-day 1.8% vs -6.7% |
| Risk Resilience | AMAT | Risk Resilience 39 vs 45 |
| Analyst expectations | ARM | Target upside 62.6% vs 49.5% |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of ARM and AMAT and are excluded from the count.
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is moderate at 8 points.
- The leader's advantage has been narrowing. (argues the conclusion is provisional)
- The lead has swung materially session to session. (argues the conclusion is provisional)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
- Analyst targets on the leader are widely dispersed. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on AMAT.
How the comparison changed
120 daily snapshots · Jun 21 – Oct 20AMAT lead: Weakening — the AIQ differential moved from 12 to 8 points over 30 sessions.
- Today
- AMAT +8
- 37 vs 45
- 7 sessions ago
- AMAT +8
- 38 vs 46
- 30 sessions ago
- AMAT +12
- 54 vs 66
- 90 sessions ago
- AMAT +5
- 52 vs 57
The lead changed hands 4 times in this window, most recently on Sep 22 when AMAT moved ahead of ARM.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
ARM and AMAT carry the same 6 signals, so the signals do not separate them: Golden Cross Active, ATR Expansion - Breakout Mode, Keltner Channel Breakdown, RSI Oversold - Potential Bounce, Beta Spike Warning, MACD Bearish Crossover.
AMAT leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Price is up while the AIQ Score moved down 1 points over the same session — price and model disagree (price +2.5%, AIQ -1 points).
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.98%, AIQ 0 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1ARM closes the Quality gap — currently 16 points behind, the largest single contributor to AMAT's edge.
- 2ARM's Keltner Channel Breakdown resolves — a bearish volatility rule currently active against it.
- 3AMAT's conflicting signal state resolves bearish — it currently carries 2 bullish and 3 bearish rules at once.
- 4The narrowing continues — the lead has already given back 4 points over 30 sessions, and a further 8-point move would eliminate AMAT's advantage entirely.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Fundamentals
AMAT leads on balance| Metric | ARM | AMAT |
|---|---|---|
| Revenue growth (YoY) | -13.5% | 15.2% |
| EPS growth (YoY) | -13.8% | -9.3% |
| Gross margin | 95.3% | 49.4% |
| Operating margin | 17.3% | 30.5% |
| Return on equity (TTM) | 13% | 40.4% |
| Debt to equity | 0.06 | 0.29 |
Performance
Split across windows| Metric | ARM | AMAT |
|---|---|---|
| 1 week (5 sessions) | -13.4% | -12.8% |
| 1 month (20 sessions) | -33.7% | -14.3% |
| 3 months (63 sessions) | -22% | -26.9% |
| 6 months (126 sessions) | 26% | 5.1% |
| Year to date | 102.2% | 57.6% |
| 1 year (252 sessions) | 31.7% | 79.9% |
Technicals
ARM has the stronger structure| Metric | ARM | AMAT |
|---|---|---|
| RSI (14) | 21.1 | 19.7 |
| ADX (14) | 22.2 | 24.8 |
| Price vs 50-day | -14.8% | -14.3% |
| Price vs 200-day | 1.8% | -6.7% |
| Volatility (1M, annualized) | 62.8% | 45.5% |
Risk
AMAT is the more resilient| Metric | ARM | AMAT |
|---|---|---|
| Beta | 3.46 | 2.69 |
| Sharpe ratio | 0.7 | 1.22 |
| Sortino ratio | 1.29 | 1.95 |
| Max drawdown | -49.7% | -44% |
| Current drawdown | -49.7% | -44% |
| Annualized volatility | 79.2% | 60% |
| Value at risk (95%) | -7.4% | -6.2% |
Straight answers
Each answer is regenerated from the current snapshot, not written once and left to age.
Which is better, ARM or AMAT?
On the Algovestiq AIQ Score, AMAT is the stronger of the two as of Oct 21, 2026, scoring 45 against ARM's 37. The edge comes from quality and value. This is a systematic score, not a recommendation: it ranks the two on the same evidence, it does not know your holding period or tax position.
Is ARM or AMAT the better buy right now?
AMAT carries the stronger systematic profile as of Oct 21, 2026, and the comparison is rated Fragile — 4 of 6 covered evidence groups agree. A Fragile rating means the conclusion is sensitive: the leader's advantage has been narrowing. Treat the lead as provisional.
Why does the AIQ Score favor AMAT over ARM?
The composite weights Quality, Value, Momentum and Risk Resilience. AMAT leads Quality by 16 points; AMAT leads Value by 8 points; AMAT leads Risk Resilience by 6 points. Where the two split, the factor with the larger weight carries the result.
Which has more analyst upside, ARM or AMAT?
Analyst price targets imply +62.6% upside for ARM and +49.5% for AMAT, so the Street currently favors ARM. That points the opposite way to the AIQ Score, which favors AMAT. The two are measuring different things: the model reads current fundamentals, valuation, trend and risk; the Street is pricing forward expectations. A divergence of this kind is either a contrarian opportunity or a sign the model is missing something the analysts have already priced — it is the single most useful row on this page to investigate. Analyst targets are expectations, not predictions, and dispersion matters as much as the midpoint.
Which is better value, ARM or AMAT?
AMAT is the better-valued of the two on the peer-relative Value factor. AMAT on the peer-relative Value factor, by 8 points. The Value factor reads valuation relative to sector peers and to the company's own fundamental quality, so it is not the same as simply having the lower multiple.
Which has stronger growth, ARM or AMAT?
AMAT on combined revenue and EPS growth. Growth here is measured on reported revenue and earnings, not on forward estimates — it describes what the businesses have delivered, not what the Street expects next.
Which has stronger momentum, ARM or AMAT?
The two are level on Momentum. Momentum is one of the four weighted factors in the AIQ composite. It has documented persistence over three- to twelve-month horizons, which makes it a timing input rather than a reason to hold something indefinitely.
Which is riskier, ARM or AMAT?
AMAT is the more resilient of the two, so the other name carries the higher downside risk. AMAT on Risk Resilience, by 6 points. Risk Resilience is a weighted factor in the composite; position sizing usually responds to it more usefully than the buy/avoid decision does.
Is ARM more profitable than AMAT?
The profitability evidence is mixed: gross margin 95.3% vs 49.4%; operating margin 17.3% vs 30.5%; ttm roe 13% vs 40.4%. ARM leads on one measure and AMAT on two measures, and there is no single profitability composite that resolves the split — which of the two reads as "more profitable" depends on whether you weight pricing power or operating leverage.
Is AMAT's lead over ARM getting stronger or weaker?
AMAT lead: Weakening — the AIQ differential moved from 12 to 8 points over 30 sessions. This is measured from 120 daily comparison snapshots between 2026-06-21 and 2026-10-20. The lead has changed hands 4 times in that window, most recently on 2026-09-22, when AMAT moved ahead of ARM.
What would change the ARM vs AMAT verdict?
The result is a state, not a forecast, so it changes when the underlying evidence changes. Concretely: ARM closes the Quality gap — currently 16 points behind, the largest single contributor to AMAT's edge; ARM's Keltner Channel Breakdown resolves — a bearish volatility rule currently active against it; AMAT's conflicting signal state resolves bearish — it currently carries 2 bullish and 3 bearish rules at once; the narrowing continues — the lead has already given back 4 points over 30 sessions, and a further 8-point move would eliminate AMAT's advantage entirely.
What do the current signals say about ARM and AMAT?
ARM: 2 bullish / 3 bearish / 1 neutral, conflicted. AMAT: 2 bullish / 3 bearish / 1 neutral, conflicted. A conflicted state means bullish and bearish rules are active on the same name at once — the technical evidence is not pointing one way, and a decision taken on it carries more timing risk. The most decision-relevant rule on ARM is Golden Cross Active (bullish, long horizon). On AMAT it is Golden Cross Active (bullish, long horizon).
Compare ARM and AMAT with others
Continue your research
This page answers which of the two. These answer the questions on either side of it.
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality, Value, Momentum and Risk, each carrying a fixed weight. Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.