The article compares Advanced Micro Devices, which designs and sells CPUs, GPUs and AI accelerators directly, with Arm, which licenses its chip architecture and earns royalties. In the fiscal year ended December 27, 2025, AMD reported revenue of nearly $34.6 billion, up about 34.3%, with net income of about $4.3 billion and free cash flow of nearly $6.7 billion. Arm reported $4.9 billion in revenue for the fiscal year ended March 31, 2026, up 22.8%, with net income of about $904 million and free cash flow of roughly $979 million. Stock-based compensation was about 21.2% of AMD’s operating cash flow and roughly 69% of Arm’s. The article also cites risks: AMD faces competition from Intel and Nvidia, depends on TSMC and faces export restrictions to China, while Arm depends on a smartphone market nearing saturation and faces competition from Qualcomm.
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