WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsNVIDIA Corporation (NVDA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NVIDIA Corporation generates 5052% more annual revenue ($253.49B vs $4.92B). NVDA leads profitability with a 63.0% profit margin vs 18.4%. NVDA appears more attractively valued with a PEG of 0.63. NVDA earns a higher WallStSmart Score of 80/100 (A-).

ARM

Buy

63

out of 100

Grade: C+

Growth: 9.3Profit: 7.5Value: 3.0Quality: 8.5
Piotroski: 3/9Altman Z: 3.96

NVDA

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ARM.

NVDASignificantly Overvalued (-73.9%)

Margin of Safety

-73.9%

Fair Value

$119.30

Current Price

$205.10

$85.80 premium

UndervaluedFair: $119.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARM6 strengths · Avg: 9.0/10
Market CapQuality
$365.53B10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.9610/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

EPS GrowthGrowth
47.9%8/10

Earnings expanding 47.9% YoY

NVDA6 strengths · Avg: 10.0/10
Market CapQuality
$5.15T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.7%10/10

Every $100 of equity generates 82 in profit

Profit MarginProfitability
63.0%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
65.6%10/10

Strong operational efficiency at 65.6%

Revenue GrowthGrowth
85.2%10/10

Revenue surging 85.2% year-over-year

EPS GrowthGrowth
214.5%10/10

Earnings expanding 214.5% YoY

Areas to Watch

ARM4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.972/10

Expensive relative to growth rate

P/E RatioValuation
397.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
44.0x2/10

Trading at 44.0x book value

NVDA3 concerns · Avg: 3.0/10
P/E RatioValuation
31.4x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
25.4x2/10

Trading at 25.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARM

The strongest argument for ARM centers on Market Cap, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 18.4% and operating margin at 29.5%. Revenue growth of 20.1% demonstrates continued momentum.

Bull Case : NVDA

The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 63.0% and operating margin at 65.6%. Revenue growth of 85.2% demonstrates continued momentum.

Bear Case : ARM

The primary concerns for ARM are Piotroski F-Score, PEG Ratio, P/E Ratio. A P/E of 397.9x leaves little room for execution misses.

Bear Case : NVDA

The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.

Key Dynamics to Monitor

ARM carries more volatility with a beta of 3.79 — expect wider price swings.

NVDA is growing revenue faster at 85.2% — sustainability is the question.

NVDA generates stronger free cash flow (48.6B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NVDA scores higher overall (80/100 vs 63/100), backed by strong 63.0% margins and 85.2% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arm Holdings plc American Depositary Shares

TECHNOLOGY · SEMICONDUCTORS · USA

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.

NVIDIA Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

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