AMD vs ARM

For growth investors, Advanced Micro Devices, Inc.

(AMD) is the stronger pick with 34. 3% revenue growth year-over-year, versus 23. 9% for Arm Holdings plc American Depositary Shares (ARM). Advanced Micro Devices, Inc. (AMD) offers the better valuation at 159. 0x trailing P/E (61. 6x forward), making it the more compelling value choice. Analysts rate Advanced Micro Devices, Inc. (AMD) a "Buy" — based on 70 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Advanced Micro Devices, Inc.

(AMD) is the cheapest at 159. 0x versus Arm Holdings plc American Depositary Shares at 316. 4x. On forward P/E, Advanced Micro Devices, Inc. is actually cheaper at 61. 6x.

Over the past 5 years, Advanced Micro Devices, Inc.

(AMD) delivered a total return of +441. 1%, compared to +290. 6% for Arm Holdings plc American Depositary Shares (ARM). Over 10 years, the gap is even starker: AMD returned +113. 5% versus ARM's +290. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Advanced Micro Devices, Inc.

(AMD) is the lower-risk stock at 2. 30β versus Arm Holdings plc American Depositary Shares's 2. 42β — meaning ARM is approximately 6% more volatile than AMD relative to the S&P 500. On balance sheet safety, Arm Holdings plc American Depositary Shares (ARM) carries a lower debt/equity ratio of 5% versus 7% for Advanced Micro Devices, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Advanced Micro Devices, Inc.

(AMD) is pulling ahead at 34. 3% versus 23. 9% for Arm Holdings plc American Depositary Shares (ARM). On earnings-per-share growth, the picture is similar: Advanced Micro Devices, Inc. grew EPS 165. 0% year-over-year, compared to 158. 6% for Arm Holdings plc American Depositary Shares. Over a 3-year CAGR, ARM leads at 14. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Arm Holdings plc American Depositary Shares (ARM) is the more profitable company, earning 19.

8% net margin versus 12. 5% for Advanced Micro Devices, Inc. — meaning it keeps 19. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARM leads at 20. 6% versus 10. 7% for AMD. At the gross margin level — before operating expenses — ARM leads at 94. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Advanced Micro Devices, Inc.

(AMD) trades at 61. 6x forward P/E versus 135. 4x for Arm Holdings plc American Depositary Shares — 73. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMD: -26. 2% to $310. 86.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Arm Holdings plc American Depositary Shares (ARM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+290.

6% 10Y return). Advanced Micro Devices, Inc. (AMD) carries a higher beta of 2. 30 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ARM: +290. 6%, AMD: +113. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.