What stocks will move with ARM

Screening Filters

1. Industry: Semiconductors & Semiconductor Equipment

   • Purpose: Focus on companies operating in the same primary business area as ARM.
   • Rationale: Stocks in the same industry often move together because they share the same fundamental drivers (chip demand, pricing cycles, capex trends, AI/data center spending, smartphone/IoT demand). Since ARM is a semiconductor-related company, other semiconductor names are more likely to be correlated with it than companies in unrelated sectors.

2. Themes: AI Beneficiary, Semiconductor Equipment & Materials, Technology, Big Data

   • Purpose: Capture companies exposed to the same structural themes that drive ARM’s story.
   • Rationale: ARM is widely viewed as a play on:
     • AI/accelerated computing
     • High-performance and energy-efficient chips
     • Data center and edge computing
       By filtering for AI, semiconductor, technology, and big data themes, you’re focusing on stocks that tend to react to the same news and capital flows as ARM (e.g., AI hype cycles, cloud spending updates, GPU/CPU demand).

3. Beta: HighRisk

   • Purpose: Select higher-volatility, higher-beta names.
   • Rationale: ARM trades like a high-beta growth stock: it responds strongly to market moves, risk-on/risk-off shifts, and sentiment in tech/AI. High-beta stocks within the same sector and themes are more likely to show similar directional moves and amplitude, increasing the chance of correlation with ARM’s price action.

4. Return on Equity (ROE) ≥ 8%

   • Purpose: Screen out structurally weak or low-quality businesses.
   • Rationale: ARM is perceived as a quality franchise with solid profitability. Companies with at least moderate ROE are more likely to be held by similar institutional investors and appear in the same “quality growth tech” baskets. That common ownership and positioning can support correlated trading behavior versus low-ROE or distressed names.

5. Revenue 5-Year CAGR ≥ 15%

   • Purpose: Capture higher-growth semiconductor and tech names.
   • Rationale: ARM is a growth story; its valuation and trading are driven by future growth expectations, especially around AI and advanced compute. Other high-growth semis and AI beneficiaries tend to move together due to shared sensitivity to growth expectations, rate moves, and risk appetite. Mature, slow-growth chip makers are less likely to track ARM’s behavior.

6. Analyst Consensus: Strong Buy or Moderate Buy

   • Purpose: Include stocks with broadly positive Street sentiment.
   • Rationale: ARM is generally treated as a favored growth name by analysts and investors. Stocks with similarly positive analyst views often share similar flows (overweights in tech/AI funds, inclusion in “AI basket” trades), and they can react in tandem to macro tech news or AI-related headlines.

Why Results Match Your Request

• The industry and AI/tech/big data themes align the results with ARM’s fundamental and narrative drivers, which is key for price correlation.
• The high beta and high growth (revenue CAGR) filters match ARM’s risk and factor profile, making co-movement with broader growth/AI sentiment more likely.
• The ROE and positive analyst consensus filters push the list toward quality growth names that sit in the same institutional and retail “AI/semis” buckets as ARM, reinforcing similar trading patterns.

These filters don’t guarantee tight statistical correlation with ARM, but they’re designed to identify stocks that are exposed to the same sector, themes, and risk factors that most often drive ARM’s moves.