ARM vs. AMD

Last updated Jun 4, 2026

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

Performance

ARM vs. AMD - Performance Comparison

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

Returns By Period

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

ARM

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

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%

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

ARM vs. AMD - Yearly Performance Comparison

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

Correlation

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

Fundamentals

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

Return for Risk

ARM vs. AMD — Risk / Return Rank

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

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

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

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.

ARM vs. AMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arm Holdings plc American Depositary Shares (ARM) and Advanced Micro Devices, Inc. (AMD). 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.

	ARM	AMD	Difference
Sharpe ratio: Return per unit of total volatility	3.39	5.64	-2.24
Sortino ratio: Return per unit of downside risk	3.81	4.97	-1.16
Omega ratio: Gain probability vs. loss probability	1.48	1.66	-0.17
Calmar ratio: Return relative to maximum drawdown	5.34	13.16	-7.82
Martin ratio: Return relative to average drawdown	10.57	27.28	-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.

ARM vs. AMD - Sharpe Ratio Comparison

The current ARM Sharpe Ratio is 3.39, which is lower than the AMD Sharpe Ratio of 5.64. The chart below compares the historical Sharpe Ratios of ARM and AMD, 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

	ARM	AMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.39	5.64	-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	1.32	0.17	+1.16

Drawdowns

ARM vs. AMD - Drawdown Comparison

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

Drawdown Indicators

	ARM	AMD	Difference
Max Drawdown Largest peak-to-trough decline	-53.97%	-96.59%	+42.62%
Max Drawdown (1Y) Largest decline over 1 year	-41.47%	-27.76%	-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	-21.42%	-56.68%	+35.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.88%	13.36%	+7.52%

Volatility

ARM vs. AMD - Volatility Comparison

Arm Holdings plc American Depositary Shares (ARM) has a higher volatility of 33.02% compared to Advanced Micro Devices, Inc. (AMD) at 24.11%. This indicates that ARM's price experiences larger fluctuations and is considered to be riskier than AMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

ARM vs. AMD - Dividend Comparison

Neither ARM nor AMD has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

ARM vs. AMD - Profitability Comparison

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

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 - 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 - 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 - 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 - 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%.

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%.

Frequently Asked Questions

Can I hold both ARM and AMD in my portfolio?

ARM and AMD 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, ARM or AMD?

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

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.