Advanced Micro Devices vs. Arm Holdings: Comparing Revenue Trends Between These Artificial Intelligence Companies
Key Points
Advanced Micro Devices currently demonstrates a stronger overall baseline for revenue generation, maintaining a wider financial scale than Arm across all the observed quarterly reporting periods.
Over the course of the last eight quarters, AMD has maintained a consistently upward year-over-year revenue trajectory, while Arm has navigated a more volatile quarter-over-quarter pattern.
Investors analyzing these trends should watch whether the revenue gap between the two companies continues its historical tendency to widen steadily or begins to narrow in the upcoming quarterly periods.
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Advanced Micro Devices: Maintaining a Consistently Upward Revenue Trajectory
Advanced Micro Devices (NASDAQ:AMD) generates revenue by developing specialized processors, graphics cards, and custom computing solutions for global manufacturers.
It introduced new server processors alongside specialized computing components and officially acquired technology firm Taalas, while concurrently reporting a 20% net income margin for the quarter ended June 27, 2026.
Arm: Navigating Persistent Revenue Fluctuations
Arm Holdings (NASDAQ:ARM) earns revenue by engineering and broadly licensing fundamental central processing unit designs to semiconductor manufacturers worldwide.
While facing early reports of a regulatory antitrust investigation and formally expanding a platform agreement with US Signal, it posted an 8% operating margin for the quarter ended June 30, 2026.
Why Revenue Matters for Investors Analyzing These Two Peers
Revenue helps everyday investors evaluate a company's fundamental ability to consistently attract diverse customer spending across various geographic markets before any distinct operational costs, localized taxes, or overhead administrative expenses are subtracted from the overall total.
Understanding this top-line figure helps investors measure how effectively a business generates sales over time.
Comparing the Quarterly Revenue Trends for AMD and Arm
| Calendar quarter | Advanced Micro Devices Revenue | Arm Revenue |
|---|---|---|
| Q3 2024 | $6.8 billion (quarter ended Sept. 28, 2024) | $844.0 million (quarter ended Sept. 30, 2024) |
| Q4 2024 | $7.7 billion (quarter ended Dec. 28, 2024) | $983.0 million (quarter ended Dec. 31, 2024) |
| Q1 2025 | $7.4 billion (quarter ended March 29, 2025) | $1.2 billion (quarter ended March 31, 2025) |
| Q2 2025 | $7.7 billion (quarter ended June 28, 2025) | $1.1 billion (quarter ended June 30, 2025) |
| Q3 2025 | $9.2 billion (quarter ended Sept. 27, 2025) | $1.1 billion (quarter ended Sept. 30, 2025) |
| Q4 2025 | $10.3 billion (quarter ended Dec. 27, 2025) | $1.2 billion (quarter ended Dec. 31, 2025) |
| Q1 2026 | $10.3 billion (quarter ended March 28, 2026) | $1.5 billion (quarter ended March 31, 2026) |
| Q2 2026 | $11.5 billion (quarter ended June 27, 2026) | $1.3 billion (quarter ended June 30, 2026) |
Data source: Company filings. Data as of Aug. 21, 2026.
Foolish Take
Both Advanced Micro Devices and Arm are major players in the semiconductor industry, yet comparing revenue trends reveals the former is enjoying steadily increasing sales.
Demand for AMD's chips for the red-hot artificial intelligence sector is demonstrated in its rapidly rising revenue. In its fiscal second quarter ended June 27, the company's $11.5 billion represented impressive 50% year-over-year sales growth. AMD anticipates Q3 revenue to accelerate to $13 billion, illustrating that customers continue to seek its products for AI.
Arm's business isn't growing as fast as AMD. In Q2, its $1.3 billion in sales was a 22% year-over-year increase. It forecasted Q3 revenue to reach $1.4 billion. In an effort to expand, the company is moving into semiconductor chip production rather than merely licensing its technology. Like AMD, Arm will be a fabless chip provider, outsourcing the manufacturing to other enterprises.
Arm is also seeing growing royalties from data centers as these facilities adopt its CPU designs. These emerging lines of business may provide a boost to its current revenue trend in future quarters.
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Robert Izquierdo has positions in Advanced Micro Devices and Arm Holdings. The Motley Fool has positions in and recommends Advanced Micro Devices and Arm Holdings. The Motley Fool has a disclosure policy.
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