Joshua Buchalter, an analyst from TD Cowen, has initiated a new Buy rating on Ceva (CEVA).
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Joshua Buchalter has given his Buy rating due to a combination of factors, primarily CEVA’s shift away from its legacy, smartphone-centric DSP business toward faster‑growing Smart Edge markets such as connectivity, sensing, and on‑device AI. He argues that this pivot into higher‑value, AI‑driven applications improves the durability of revenue and long‑term earnings, yet is not adequately reflected in the company’s current valuation multiples.
He also highlights that AI now represents a meaningful share of new licenses and is supported by a sizable royalty pipeline, indicating stronger earnings potential than the market currently prices in. In his view, concerns about handset exposure are overstated given how significantly that segment has already declined, while optional upside from non‑core Apple modem royalties further enhances free‑cash‑flow potential, justifying the Buy rating and $22 price target.