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Arteris Inc

Arteris Inc

AIP
$22.69USD↑+1.25%+0.28 today

MARKET CAP

1.1B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$23 – $23

52W RANGE

$9
$50

AI Summary

Stalk
StalkMedium

AIP is deeply oversold in a structural Stage 4 downtrend, and while a Bearish Exhaustion pattern signals potential seller fatigue, price remains below declining 9- and 20-period EMAs with subdued volume. Mean-reversion is permitted, but overhead resistance and lack of clear acceptance advise deferring execution until a cleaner pullback into the EMA zone and a sustained move above short-term resistance.

  • ↑Q2 revenue $24.1M (+46% YoY) with guidance lifted to $95–98M
  • ↑Annual contract value plus royalties at $99.5M (up 44% YoY)
  • ↓Q2 non-GAAP operating loss of $4.6M driven by high payroll taxes
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Arteris, Inc. (NASDAQ: AIP) is a leading provider of semiconductor interconnect technology that specializes in efficient data movement for advanced chip designs. Positioned within high-growth markets such as automotive, enterprise computing, aerospace, and AI data centers, Arteris is capitalizing on the increasing demand for advanced semiconductor solutions. With a focus on strengthening its customer base and transitioning into cybersecurity and AI applications, Arteris is enhancing its footprint in a rapidly evolving technology landscape.

Bull says

  • ↑Q2 revenue $24.1M (+46% YoY) with guidance lifted to $95–98M
  • ↑Annual contract value plus royalties at $99.5M (up 44% YoY)
  • ↑Non-GAAP gross margin of 87% and cash balance $123M post $72M raise
  • ↑Jefferies, Oppenheimer & Rosenblatt all issue Buy ratings
  • ↑High momentum and liquidity factors support smooth entry/exit
  • ↑Design starts in AI/advanced chips up 21%, driving core demand

Bear says

  • ↓Q2 non-GAAP operating loss of $4.6M driven by high payroll taxes
  • ↓Negative earnings yield and low book-to-price ratio suggest overvaluation
  • ↓CFO sold >10,000 shares, creating modest sentiment overhang
  • ↓Elevated volatility and short interest pose risk of sharp drawdowns
  • ↓Weak profitability factor and low dividend yield deter income buyers
  • ↓Reliance on hyperscaler demand and rising competition challenge growth

Investment themes with AIP

Datacenter↑ +1.14%

Infrastructure powering data storage and cloud computing

ORCL · EQIX · DLR

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 05-14-2025bullish

Transcript signals

Bull points

  • We're excited to report a solid first quarter of 2024 with annual contract value plus royalties of $58.2 million.
  • This quarter's success was driven by continued robust licensing activity across all of our verticals, led in particular by enterprise computing and automotive deals.
  • approximately half of our first quarter license deals enabled AI and machine learning design starts, increasingly supporting generative AI and large language model applications.

Bear points

  • Currently, certain macroeconomic dynamics, including geopolitical uncertainties and the U.S. BIS restrictions concerning China, continue to impact our business, though we are not seeing further deterioration at this time.
  • That basically the business is going to continue at the current level. We're going to keep getting new customers in China, new design wins, but that it's not going to go to the, I would say the previous bonanza, before the headwinds sort of started between China and the U.S. So we're planning for things to stay the same. We're planning for status quo in terms of our Chinese business.
  • Currently, certain macroeconomic dynamics, including geopolitical uncertainties and the U.S. BIS restrictions concerning China, U.S. trade, continue to impact our business.
Read full transcript analysis ›