Arteris (AIP) AI Stock Analysis

• Market Cap: $619.87M
• Dividend Yield: N/A
• Average Volume (3M): 364.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: 20.45%
• EPS Growth: 12.28%
• Country: US
• Employees: 267
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.09
• Shares Outstanding: 43,683,773
• 10 Day Avg. Volume: 394,252
• 30 Day Avg. Volume: 364,577
• PEG Ratio: 0.71
• Price to Book (P/B): -333.78
• Price to Sales (P/S): 6.87
• P/FCF Ratio: -379.82
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 9.24
• Enterprise Value/Gross Profit: 10.27
• Enterprise Value/Ebitda: -23.55
• 1Y Price Target: $20.50
• Price Target Upside: 44.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $17.50 ▲(23.33% Upside)

Arteris' overall stock score is primarily impacted by its financial instability, with negative equity and profitability issues weighing heavily. Technical analysis provides a positive outlook with strong momentum, while the earnings call highlights growth in contract values and product adoption. However, valuation concerns due to negative earnings and the absence of dividends further dampen the score.

Positive Factors

Record contract value and growing royalties

Sustained ACV and royalty growth indicate stronger multi-year revenue visibility and deeper customer embedment. This durable contract momentum supports recurring license and royalty streams, improving long-term revenue predictability as chip designs containing Arteris IP scale to production.

High gross profit margin indicating operational efficiency

A persistently high gross margin shows scalable unit economics for core NoC technology. That structural efficiency can fund R&D and margin expansion as royalties scale, making profitability achievable once fixed costs are absorbed and royalty timing normalizes.

Strong liquidity position with no financial debt

A sizable cash balance and zero debt materially reduce solvency risk and provide strategic optionality for M&A, R&D investment, and working capital. This long-term financial flexibility supports execution of multi-year product roadmaps and deal-driven royalty growth.

Negative Factors

Negative stockholders' equity and balance sheet instability

Negative equity reflects accumulated losses and weak retained earnings, limiting borrowing capacity and investor flexibility. This structural imbalance can constrain capital allocation, increase financing cost, and require corrective measures to restore long-term balance sheet health.

Persistent operating losses and negative net margins

Ongoing operating losses show the company has not yet converted higher gross margins into sustainable profitability. Continued negative operating results erode reserves, pressure equity, and make long-term self-funding of growth and R&D harder without improved margins or sustained royalty scale.

Unpredictable cash conversion due to royalty timing lag

A structural 3-6 year lag from design adoption to royalty realization creates lumpy, delayed cash inflows and forecasting risk. Combined with negative FCF growth historically, this makes funding R&D and scaling operations more dependent on financing or execution of long-term deals.

Arteris Business Overview & Revenue Model

Company Description

Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and IP deployment solutions in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric technology used in System-on-Chip (Soc) designs and Network-on-Chip (NoC) interconnect IP. Its products include FlexNoC, a silicon-proven interconnect IP product; FlexNoC Resilience Package, which provides on-chip data protection; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; CodaCache, a last-level cache semiconductor IP product; and Physical interconnect aware NoC optimizer, a software tool that estimates physical layout effects during the architecture and logic development stages of an SoC interconnect design; The company also offers FlexWay for IP subsystem interconnect; FlexPSI for All-digital inter chip link; and FlexNoC Physical for linking physical placement and routing tools. In addition, it provides IP deployment software solutions, including specification, design, documentation, artificial intelligence (AI) package, design data intelligence, and harmony trace. The company serves customers in the automotive, AI/machine learning, 5G and wireless communications, data centers, consumer electronics, and other markets. Arteris, Inc. was founded in 2003 and is headquartered in Campbell, California.

How the Company Makes Money

Arteris generates revenue primarily through the licensing of its technology and software solutions to semiconductor companies. This includes both one-time licensing fees and recurring royalties based on the production volumes of chips utilizing their NoC technology. Additionally, Arteris offers professional services such as design consultancy and technical support, which further contribute to its income. Significant partnerships with major semiconductor manufacturers and ongoing collaborations with industry leaders bolster the company's market position and provide a steady stream of revenue through joint development projects and co-marketing agreements.

Arteris Financial Statement Overview

Summary

Arteris faces significant financial challenges, with consistent revenue growth overshadowed by persistent profitability issues and negative equity. The high gross profit margin suggests operational efficiency, but the inability to achieve net profitability and positive cash flow indicates underlying financial instability. The company needs to address its leverage and cash flow issues to improve its financial health.

Income Statement

Arteris shows a consistent revenue growth trend, with a 4.26% increase in TTM. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins over the periods. The gross profit margin remains high, indicating efficient production, but the inability to translate this into net profits is concerning.

Balance Sheet

The balance sheet reveals a negative stockholders' equity in the TTM, indicating financial instability. The debt-to-equity ratio is negative, suggesting high leverage and potential risk. Although there was a positive return on equity in the TTM, it is due to negative equity, which is not sustainable.

Cash Flow

Cash flow analysis shows negative free cash flow growth in the TTM, indicating cash generation issues. The operating cash flow to net income ratio is low, reflecting challenges in converting income into cash. The free cash flow to net income ratio is negative, further highlighting cash flow concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.93M	57.72M	53.67M	50.38M	37.86M	31.81M
Gross Profit	59.32M	51.76M	48.59M	46.10M	34.13M	30.32M
EBITDA	-25.87M	-24.83M	-28.52M	-25.33M	-20.27M	-1.25M
Net Income	-34.45M	-33.64M	-36.87M	-27.39M	-23.38M	-3.26M
Balance Sheet
Total Assets	107.74M	106.14M	102.80M	115.52M	120.44M	42.74M
Cash, Cash Equivalents and Short-Term Investments	39.08M	43.84M	41.17M	68.15M	85.83M	11.74M
Total Debt	6.86M	5.99M	7.75M	3.62M	3.91M	4.77M
Total Liabilities	119.19M	107.32M	87.70M	77.98M	67.54M	49.03M
Stockholders Equity	-11.45M	-1.19M	15.10M	37.53M	52.90M	-6.30M
Cash Flow
Free Cash Flow	-372.00K	-1.04M	-17.23M	-7.82M	-1.62M	1.51M
Operating Cash Flow	932.00K	-720.00K	-15.73M	-6.77M	-814.00K	2.16M
Investing Cash Flow	-2.98M	970.00K	-4.69M	-37.48M	-1.36M	-5.15M
Financing Cash Flow	1.69M	-262.00K	-2.92M	-4.15M	76.25M	790.00K

Arteris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIP, the sentiment is Negative. The current price of 14.19 is below the 20-day moving average (MA) of 16.36, below the 50-day MA of 16.12, and above the 200-day MA of 11.45, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIP.

Arteris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	81 Outperform	$312.29M	22.54	23.36%	6.28%	-9.48%	-14.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	56 Neutral	$157.64M	-5.33	-23.56%	―	7.53%	-15.00%
CEVA	52 Neutral	$558.46M	-43.68	-4.22%	―	5.55%	-239.94%
AIP	50 Neutral	$619.87M	-17.06	―	―	20.45%	12.28%
LAES	50 Neutral	$739.60M	-8.32	-45.62%	―	-44.30%	16.42%
BZAI	45 Neutral	$146.45M	-0.52	-1331.73%	―	―	-1827.24%

Arteris Corporate Events

Arteris Announces Merger Agreement with Cycuity

On December 10, 2025, Arteris, Inc. entered into a merger agreement to acquire Cycuity, Inc. through a two-step merger process. The acquisition involves a total consideration of up to $45 million, including cash, shares, and potential earnout payments contingent on Cycuity’s performance in 2026. The transaction is subject to customary closing conditions and includes escrow arrangements for indemnification and post-closing adjustments.

The most recent analyst rating on (AIP) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Arteris stock, see the AIP Stock Forecast page.