Arteris (AIP) AI Stock Analysis

• Market Cap: $391.23M
• Dividend Yield: N/A
• Average Volume (3M): 555.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 14.68%
• EPS Growth: 20.20%
• Country: US
• Employees: 267
• Sector: Technology
• Sector Strength: 90
• Industry: Semiconductors
• EPS (TTM): -0.09
• Shares Outstanding: 41,977,730
• 10 Day Avg. Volume: 324,821
• 30 Day Avg. Volume: 555,064
• PEG Ratio: -2.07
• Price to Book (P/B): -79.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 292.48
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: -3.68
• 1Y Price Target: $14.00
• Price Target Upside: 50.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: $10.50 ▲(12.66%Upside)

Arteris's overall stock score is primarily driven by technical analysis, indicating strong market momentum. However, financial performance is mixed, with notable revenue growth but concerns over profitability and financial stability. Valuation remains a challenge due to negative earnings and lack of dividend yield, impacting the attractiveness of the stock.

Positive Factors

Customer Growth

Arteris added 14 new customers in 2024, while higher ASP FlexNoc5 and new products like FlexGen demonstrate continued momentum.

Financial Performance

The company reported record annual contract value (ACV) plus royalties, record RPO, and strong FCF generation, an indicator of the strong underlying demand for its network-on-chip IP solutions.

Licensing and Partnerships

Securing a licensing win with a leading Japanese automotive OEM for a new autonomous driving SoC was another highlight, bringing the company's total direct Auto OEM engagements to 10.

Negative Factors

Economic Environment

The uncertain economic environment is impacting demand for Arteris' customers' products, particularly in Automotive and Consumer.

Royalty Performance

A lighter-than-anticipated royalty line likely contributed to a mixed quarter performance due to the tepid auto backdrop.

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 makes money primarily by licensing its intellectual property (IP) solutions to semiconductor and electronic device manufacturers who integrate these solutions into their SoC designs. The company charges upfront licensing fees as well as royalties based on the production volume of chips that incorporate its IP. Additionally, Arteris offers maintenance and support services, which provide recurring revenue streams. Strategic partnerships with major semiconductor companies and technology firms also contribute to Arteris' revenue by expanding its market reach and fostering innovation in its product offerings.

Arteris Financial Statement Overview

Summary

Arteris shows revenue growth but struggles with profitability and financial stability. High gross profit margins are offset by negative net income and EBIT margins. Financial leverage and negative equity pose risks, while improved cash flow reflects mixed performance.

Income Statement

Arteris has shown consistent revenue growth, with a revenue increase of 13.51% from 2023 to 2024 and an additional 6.21% in TTM. However, profitability remains a challenge with negative net profit margins and EBIT margins. Despite a strong gross profit margin of 89.19% in TTM, the sustained losses highlight ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals significant financial leverage, with negative stockholders' equity in TTM, indicating high reliance on debt financing. This is a potential risk factor, though total liabilities have decreased over the periods. The equity ratio is negative due to liabilities exceeding assets, indicating weak financial stability.

Cash Flow

Arteris has improved its free cash flow position, turning positive in TTM, which is a positive indicator. However, cash flow from operations remains weak relative to net income, reflecting challenges in converting sales into cash. The operating cash flow to net income ratio suggests inefficiencies in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.72M	53.67M	50.38M	37.86M	31.81M
Gross Profit	51.76M	48.59M	46.10M	34.13M	30.32M
EBITDA	-24.83M	-28.52M	-25.35M	-20.27M	-1.25M
Net Income	-33.64M	-36.87M	-27.10M	-23.38M	-3.26M
Balance Sheet
Total Assets	106.14M	102.80M	115.52M	120.44M	42.74M
Cash, Cash Equivalents and Short-Term Investments	43.84M	41.17M	68.15M	85.83M	11.74M
Total Debt	5.99M	7.75M	3.62M	3.91M	4.77M
Total Liabilities	107.32M	87.70M	77.98M	67.54M	54.74M
Stockholders Equity	-1.19M	15.10M	37.53M	52.90M	-12.01M
Cash Flow
Free Cash Flow	-1.04M	-17.23M	-7.82M	-1.62M	1.51M
Operating Cash Flow	-720.00K	-15.73M	-6.77M	-814.00K	2.16M
Investing Cash Flow	970.00K	-4.69M	-37.48M	-1.36M	-5.15M
Financing Cash Flow	-262.00K	-2.92M	-4.15M	76.25M	790.00K

Arteris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIP, the sentiment is Neutral. The current price of 9.32 is below the 20-day moving average (MA) of 9.41, above the 50-day MA of 8.58, and above the 200-day MA of 8.50, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIP.

Arteris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	67 Neutral	$308.32M	21.21	23.09%	6.31%	-9.22%	-13.57%
AEHR	63 Neutral	$634.73M	19.55	-3.34%	―	-10.95%	-111.40%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
AIP	60 Neutral	$391.23M	―	-1369.57%	―	14.68%	20.20%
XPER	59 Neutral	$344.94M	―	-4.71%	―	-4.77%	84.82%
BZAI	56 Neutral	$406.73M	―	-375.37%	―	―	-10774.57%
INDI	50 Neutral	$907.43M	―	-32.43%	―	-7.09%	-53.23%

Arteris Corporate Events

Arteris Holds Annual Stockholders Meeting, Elects Directors

On June 3, 2025, Arteris, Inc. held its Annual Meeting of Stockholders where two key proposals were voted upon. The stockholders elected two Class I directors, K. Charles Janac and S. Atiq Raza, to serve until the 2028 annual meeting, and ratified Deloitte & Touche, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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