Arteris (AIP) AI Stock Analysis

• Market Cap: $758.79M
• Dividend Yield: N/A
• Average Volume (3M): 533.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• 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: 344,394
• 30 Day Avg. Volume: 533,080
• 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: 0.53
• Enterprise Value/Revenue: 6.06
• Enterprise Value/Gross Profit: 6.73
• Enterprise Value/Ebitda: -15.44
• 1Y Price Target: $19.17
• Price Target Upside: 9.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $15.00 ▼(-14.09% Downside)

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

Revenue Growth

The strong revenue growth trend indicates Arteris' expanding market presence and successful product adoption, particularly in AI and automotive sectors, which are likely to sustain future growth.

Strategic Partnerships

The partnership with Black Sesame Technologies enhances Arteris' position in the autonomous vehicle market, potentially leading to increased revenue streams and market influence.

Product Innovation

Arteris' innovative IP solutions like FlexNoC 5 are critical in enabling advanced AI applications, supporting long-term competitive advantage and market leadership in the semiconductor industry.

Negative Factors

Profitability Issues

Persistent profitability challenges could hinder Arteris' ability to reinvest in growth opportunities and maintain financial health, posing a risk to long-term sustainability.

Negative Equity

Negative equity reflects financial instability and high leverage, which can limit Arteris' operational flexibility and increase vulnerability to economic downturns.

Cash Flow Challenges

Negative free cash flow growth indicates difficulties in generating cash, which may constrain Arteris' ability to fund operations and invest in strategic initiatives, impacting long-term growth.

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: Positive
• Last Price: 17.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIP, the sentiment is Positive. The current price of 17.46 is above the 20-day moving average (MA) of 16.23, above the 50-day MA of 15.48, and above the 200-day MA of 10.72, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIP.

Arteris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	68 Neutral	$308.85M	22.30	22.20%	6.28%	-9.48%	-14.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	58 Neutral	$236.46M	-8.09	-23.56%	―	7.53%	-15.00%
CEVA	52 Neutral	$628.70M	-49.30	-4.22%	―	5.55%	-239.94%
AIP	50 Neutral	$758.79M	-20.99	―	―	20.45%	12.28%
LAES	50 Neutral	$804.31M	―	-45.62%	―	-44.30%	16.42%
BZAI	46 Neutral	$261.17M	-0.95	-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.