AMD vs. ARM

Last updated Jun 4, 2026

AMD (Advanced Micro Devices, Inc.) and ARM (Arm Holdings plc American Depositary Shares) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past year, AMD returned 362.47% vs 219.79% for ARM. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

AMD vs. ARM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Advanced Micro Devices, Inc. (AMD) and Arm Holdings plc American Depositary Shares (ARM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AMD achieves a 153.32% return, which is significantly lower than ARM's 276.75% return.

AMD

• 1D: 4.02%
• 1M: 58.85%
• YTD: 153.32%
• 6M: 149.32%
• 1Y: 362.47%
• 3Y*: 66.35%
• 5Y*: 46.07%
• 10Y*: 62.75%

ARM

• 1D: 2.26%
• 1M: 102.61%
• YTD: 276.75%
• 6M: 195.88%
• 1Y: 219.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AMD vs. ARM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AMD Advanced Micro Devices, Inc.	153.32%	77.30%	-18.06%	38.24%
ARM Arm Holdings plc American Depositary Shares	276.75%	-11.39%	64.16%	18.17%

Correlation

The correlation between AMD and ARM is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023	0.52

The correlation between AMD and ARM has been stable across timeframes, ranging from 0.52 to 0.55 - a consistent structural relationship.

Fundamentals

Market Cap AMD : $895.16B ARM : $439.83B
EPS AMD : $3.05 ARM : $0.85
PE Ratio AMD : 177.90 ARM : 486.43
PEG Ratio AMD : 4.75 ARM : 16.69
PS Ratio AMD : 23.79 ARM : 89.38
PB Ratio AMD : 13.89 ARM : 53.08
Total Revenue (TTM) AMD : $37.45B ARM : $4.92B
Gross Profit (TTM) AMD : $18.83B ARM : $4.66B
EBITDA (TTM) AMD : $7.17B ARM : $1.37B

Return for Risk

AMD vs. ARM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AMD

AMD Risk / Return Rank: 98
AMD Sharpe Ratio Rank: 99
AMD Sortino Ratio Rank: 97
AMD Omega Ratio Rank: 96
AMD Calmar Ratio Rank: 98
AMD Martin Ratio Rank: 97

ARM

ARM Risk / Return Rank: 92
ARM Sharpe Ratio Rank: 95
ARM Sortino Ratio Rank: 93
ARM Omega Ratio Rank: 92
ARM Calmar Ratio Rank: 92
ARM Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AMD vs. ARM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Advanced Micro Devices, Inc. (AMD) and Arm Holdings plc American Depositary Shares (ARM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AMD	ARM	Difference
Sharpe ratio: Return per unit of total volatility	5.64	3.39	+2.24
Sortino ratio: Return per unit of downside risk	4.97	3.81	+1.16
Omega ratio: Gain probability vs. loss probability	1.66	1.48	+0.17
Calmar ratio: Return relative to maximum drawdown	13.16	5.34	+7.82
Martin ratio: Return relative to average drawdown	27.28	10.57	+16.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AMD vs. ARM - Sharpe Ratio Comparison

The current AMD Sharpe Ratio is 5.64, which is higher than the ARM Sharpe Ratio of 3.39. The chart below compares the historical Sharpe Ratios of AMD and ARM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AMD	ARM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.64	3.39	+2.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.11	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	1.32	-1.16

Drawdowns

AMD vs. ARM - Drawdown Comparison

The maximum AMD drawdown since its inception was -96.59%, which is greater than ARM's maximum drawdown of -53.97%. Use the drawdown chart below to compare losses from any high point for AMD and ARM.

Drawdown Indicators

	AMD	ARM	Difference
Max Drawdown Largest peak-to-trough decline	-96.59%	-53.97%	-42.62%
Max Drawdown (1Y) Largest decline over 1 year	-27.76%	-41.47%	+13.71%
Max Drawdown (3Y) Largest decline over 3 years	-63.00%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-65.45%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-65.45%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-56.68%	-21.42%	-35.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.36%	20.88%	-7.52%

Volatility

AMD vs. ARM - Volatility Comparison

The current volatility for Advanced Micro Devices, Inc. (AMD) is 24.11%, while Arm Holdings plc American Depositary Shares (ARM) has a volatility of 33.02%. This indicates that AMD experiences smaller price fluctuations and is considered to be less risky than ARM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AMD	ARM	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.11%	33.02%	-8.91%
Volatility (6M) Calculated over the trailing 6-month period	47.17%	53.31%	-6.14%
Volatility (1Y) Calculated over the trailing 1-year period	64.84%	65.24%	-0.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	55.25%	75.37%	-20.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	56.83%	75.37%	-18.54%

Dividends

AMD vs. ARM - Dividend Comparison

Neither AMD nor ARM has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

AMD vs. ARM - Profitability Comparison

The chart below illustrates the profitability comparison between Advanced Micro Devices, Inc. and Arm Holdings plc American Depositary Shares over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AMD - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Advanced Micro Devices, Inc. reported a gross profit of 5.42B and revenue of 10.25B. Therefore, the gross margin over that period was 52.8%.

ARM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported a gross profit of 1.39B and revenue of 1.49B. Therefore, the gross margin over that period was 93.1%.

AMD - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Advanced Micro Devices, Inc. reported an operating income of 1.48B and revenue of 10.25B, resulting in an operating margin of 14.4%.

ARM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported an operating income of 440.00M and revenue of 1.49B, resulting in an operating margin of 29.5%.

AMD - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Advanced Micro Devices, Inc. reported a net income of 1.38B and revenue of 10.25B, resulting in a net margin of 13.5%.

ARM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Arm Holdings plc American Depositary Shares reported a net income of 313.00M and revenue of 1.49B, resulting in a net margin of 21.0%.

Frequently Asked Questions

Can I hold both AMD and ARM in my portfolio?

AMD and ARM have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AMD or ARM?

ARM has higher volatility (33.02%) compared to AMD (24.11%). In terms of maximum drawdown, AMD dropped -96.59% vs ARM's -53.97%.

Which has better risk-adjusted returns?

AMD currently has the higher Sharpe Ratio (5.64 vs 3.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.