ARM vs. NVDA

Last updated Jun 3, 2026

ARM (Arm Holdings plc American Depositary Shares) and NVDA (NVIDIA Corporation) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past year, ARM returned 219.47% vs 62.23% for NVDA. At a 0.50 correlation, their price movements are largely independent.

Performance

ARM vs. NVDA - Performance Comparison

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

Returns By Period

In the year-to-date period, ARM achieves a 268.41% return, which is significantly higher than NVDA's 19.48% return.

ARM

• 1D: -1.50%
• 1M: 90.70%
• YTD: 268.41%
• 6M: 195.07%
• 1Y: 219.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

NVDA

• 1D: -0.69%
• 1M: 12.28%
• YTD: 19.48%
• 6M: 22.81%
• 1Y: 62.23%
• 3Y*: 78.33%
• 5Y*: 67.45%
• 10Y*: 69.46%

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

ARM vs. NVDA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ARM Arm Holdings plc American Depositary Shares	268.41%	-11.39%	64.16%	18.17%
NVDA NVIDIA Corporation	19.48%	38.92%	171.25%	8.66%

Correlation

The correlation between ARM and NVDA is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023	0.50

The correlation between ARM and NVDA shifts across timeframes, from 0.36 (1 year) to 0.50 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ARM : $430.09B NVDA : $5.43T
EPS ARM : $0.85 NVDA : $6.53
PE Ratio ARM : 475.66 NVDA : 34.15
PEG Ratio ARM : 16.32 NVDA : 0.19
PS Ratio ARM : 87.40 NVDA : 21.50
PB Ratio ARM : 51.91 NVDA : 27.80
Total Revenue (TTM) ARM : $4.92B NVDA : $253.49B
Gross Profit (TTM) ARM : $4.66B NVDA : $187.95B
EBITDA (TTM) ARM : $1.37B NVDA : $192.76B

Return for Risk

ARM vs. NVDA — 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: 96
ARM Sortino Ratio Rank: 93
ARM Omega Ratio Rank: 92
ARM Calmar Ratio Rank: 92
ARM Martin Ratio Rank: 88

NVDA

NVDA Risk / Return Rank: 82
NVDA Sharpe Ratio Rank: 85
NVDA Sortino Ratio Rank: 82
NVDA Omega Ratio Rank: 79
NVDA Calmar Ratio Rank: 83
NVDA Martin Ratio Rank: 83

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. NVDA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arm Holdings plc American Depositary Shares (ARM) and NVIDIA Corporation (NVDA). 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	NVDA	Difference
Sharpe ratio Return per unit of total volatility	3.39	1.84	+1.55
Sortino ratio Return per unit of downside risk	3.80	2.47	+1.34
Omega ratio Gain probability vs. loss probability	1.48	1.30	+0.19
Calmar ratio Return relative to maximum drawdown	5.39	3.21	+2.17
Martin ratio Return relative to average drawdown	10.70	7.92	+2.77
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. NVDA - Sharpe Ratio Comparison

The current ARM Sharpe Ratio is 3.39, which is higher than the NVDA Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of ARM and NVDA, 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	NVDA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.39	1.84	+1.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.31	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.30	0.63	+0.67

Drawdowns

ARM vs. NVDA - Drawdown Comparison

The maximum ARM drawdown since its inception was -53.97%, smaller than the maximum NVDA drawdown of -89.72%. Use the drawdown chart below to compare losses from any high point for ARM and NVDA.

Drawdown Indicators

	ARM	NVDA	Difference
Max Drawdown Largest peak-to-trough decline	-53.97%	-89.72%	+35.75%
Max Drawdown (1Y) Largest decline over 1 year	-41.47%	-20.21%	-21.26%
Max Drawdown (3Y) Largest decline over 3 years	—	-36.88%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-66.34%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-66.34%	—
Current Drawdown Current decline from peak	-1.50%	-5.48%	+3.98%
Average Drawdown Average peak-to-trough decline	-21.45%	-36.21%	+14.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.88%	8.20%	+12.68%

Volatility

ARM vs. NVDA - Volatility Comparison

Arm Holdings plc American Depositary Shares (ARM) has a higher volatility of 33.78% compared to NVIDIA Corporation (NVDA) at 11.79%. This indicates that ARM's price experiences larger fluctuations and is considered to be riskier than NVDA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARM	NVDA	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.78%	11.79%	+21.99%
Volatility (6M) Calculated over the trailing 6-month period	53.31%	25.29%	+28.02%
Volatility (1Y) Calculated over the trailing 1-year period	65.22%	34.03%	+31.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	75.41%	51.66%	+23.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	75.41%	49.80%	+25.61%

Dividends

ARM vs. NVDA - Dividend Comparison

ARM has not paid dividends to shareholders, while NVDA's dividend yield for the trailing twelve months is around 0.02%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARM Arm Holdings plc American Depositary Shares	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NVDA NVIDIA Corporation	0.02%	0.02%	0.03%	0.03%	0.11%	0.05%	0.12%	0.27%	0.46%	0.29%	0.45%	1.20%

Financials

ARM vs. NVDA - Profitability Comparison

The chart below illustrates the profitability comparison between Arm Holdings plc American Depositary Shares and NVIDIA Corporation 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%.

NVDA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, NVIDIA Corporation reported a gross profit of 61.16B and revenue of 81.62B. Therefore, the gross margin over that period was 74.9%.

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%.

NVDA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, NVIDIA Corporation reported an operating income of 53.54B and revenue of 81.62B, resulting in an operating margin of 65.6%.

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%.

NVDA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, NVIDIA Corporation reported a net income of 58.32B and revenue of 81.62B, resulting in a net margin of 71.5%.

Frequently Asked Questions

Can I hold both ARM and NVDA in my portfolio?

ARM and NVDA have a correlation of 0.36, 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 NVDA?

ARM has higher volatility (33.78%) compared to NVDA (11.79%). In terms of maximum drawdown, ARM dropped -53.97% vs NVDA's -89.72%.

Which has better risk-adjusted returns?

ARM currently has the higher Sharpe Ratio (3.39 vs 1.84), 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.