Arteris, Inc.
- Open
- 29.16
- Day high
- 31.95
- Day low
- 28.75
- Prev close
- 31.03
- Volume
- 821K
- Mkt cap
- $1.4B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 553.1
- P/S
- 18.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$74.3M over the last 3 months (0 open-market buys, 91 sales)
- 🏛Institutions accumulating (13F)
Arteris, Inc. (AIP) is a Technology company listed on NASDAQ. The stock is up 216% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 91 sales (SEC Form 4).
Arteris, Inc. (AIP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AIP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 12, 2026 | $-0.08 | $-0.03 | +62.5% | $23M | +9.1% |
| Feb 12, 2026 | $-0.08 | $-0.05 | +37.5% | $20M | +5.4% |
| Feb 18, 2025 | $-0.11 | $-0.10 | +9.1% | $15M | +1.0% |
| Aug 1, 2024 | $-0.15 | $-0.11 | +26.7% | $15M | +0.9% |
| May 2, 2024 | $-0.17 | $-0.15 | +11.8% | $13M | +2.7% |
| Feb 20, 2024 | $-0.17 | $-0.18 | -5.9% | $13M | +5.6% |
| Aug 3, 2023 | $-0.16 | $-0.13 | +18.8% | $15M | +7.2% |
| May 4, 2023 | $-0.20 | $-0.17 | +15.0% | $13M | +10.2% |
| Feb 28, 2023 | $-0.19 | $-0.12 | +36.8% | $11M | -6.2% |
| Mar 3, 2022 | $-0.19 | $-0.12 | +36.8% | $11M | +7.7% |
| Nov 30, 2021 | $-0.25 | $-0.21 | +16.0% | $9M | -16.3% |
AIP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 2,455 | $36.17 |
| Jul 8, 2026 | Bayview Legacy, LLC10 percent owner | Sell | 29,490 | $37.07 |
| Jul 8, 2026 | Alpern Paul Lofficer: VP and General Counsel | Sell | 1,301 | $35.98 |
| Jul 8, 2026 | Alpern Paul Lofficer: VP and General Counsel | Sell | 1,824 | $37.13 |
| Jul 8, 2026 | Alpern Paul Lofficer: VP and General Counsel | Sell | 2,878 | $35.11 |
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 2,908 | $37.12 |
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 68,578 | $35.06 |
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 29,490 | $37.07 |
| Jul 8, 2026 | Bayview Legacy, LLC10 percent owner | Sell | 27,908 | $36.24 |
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 27,908 | $36.24 |
| Jul 8, 2026 | Bayview Legacy, LLC10 percent owner | Sell | 68,578 | $35.06 |
| Jul 8, 2026 | JANAC K CHARLESdirector, 10 percent owner, officer: President and CEO | Sell | 5,316 | $35.12 |
| Jul 7, 2026 | Kunkel Joachimdirector | Grant | 365 | — |
| Jul 7, 2026 | Munce Claudia F.director | Grant | 350 | — |
| Jul 6, 2026 | Hawkins Nicholas B.officer: VP and Chief Financial Officer | Sell | 1,491 | $38.78 |
Source: AIP SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full AIP insider & 13F page →Arteris, Inc. company profile
Overview
Arteris, Inc. (NASDAQ:AIP) is a semiconductor intellectual property company founded in 2003 and headquartered in Campbell, California. The company went public in October 2021 and specializes in developing and licensing interconnect technology that enables different components within computer chips to communicate efficiently. Arteris serves as a critical infrastructure provider in the semiconductor industry, offering the digital "plumbing" that connects various processing units, memory systems, and other components within modern System-on-Chip designs used in everything from smartphones to automotive systems to artificial intelligence processors.
Business
Arteris operates in the semiconductor intellectual property (IP) market, specifically focusing on **Network-on-Chip (NoC)** interconnect technology. To understand what this means, imagine a modern computer chip as a miniature city where different neighborhoods (processing cores, memory blocks, graphics units) need to communicate with each other. Just as a city needs roads, traffic lights, and routing systems to manage traffic flow, a computer chip needs interconnect infrastructure to manage data flow between its various components. The company's core products include **FlexNoC**, their flagship silicon-proven interconnect IP that acts as the communication backbone within chips, and **Ncore**, a cache-coherent interconnect solution that ensures data consistency across multiple processing cores. Their newer **FlexGen** technology uses artificial intelligence to automatically design these interconnect networks, promising up to 10x improvements in engineering productivity by reducing manual design work from weeks to hours. Arteris also provides **CodaCache** for last-level cache management and various software tools for IP deployment, including design automation, documentation, and verification solutions. The company has expanded beyond traditional interconnect IP into system-level IP blocks and software tools that help semiconductor companies integrate and optimize their chip designs. The business serves multiple market segments: 1. **Enterprise computing** (approximately 30% of revenue) including data center processors and AI accelerators, 2. **Automotive** (close to 30%) covering advanced driver assistance systems and electric vehicle controllers, 3. **Consumer electronics** (approximately 25%) for smartphones and tablets, and 4. **Emerging markets** like microcontrollers and 5G communications infrastructure. AI-related applications now represent over 55% of their total business across all verticals.
Revenue model
Arteris operates on a **licensing and royalty business model** typical of semiconductor IP companies. The company generates revenue through two primary streams: upfront license fees and ongoing royalties. When a semiconductor company licenses Arteris' IP, they pay an initial license fee (typically ranging from hundreds of thousands to over $1 million per license) for the right to use the technology in their chip designs. The company's Average Selling Price (ASP) has grown from around $550,000 currently toward a target of $1 million by 2026. The second revenue stream comes from **royalty payments** based on the volume of chips shipped by customers that incorporate Arteris IP. These royalties provide recurring revenue and currently represent approximately 10% of total revenue, though this percentage fluctuates based on customer production cycles and market demand. **Revenue growth drivers** include the increasing complexity of semiconductor designs, particularly in AI and automotive applications, which require more sophisticated interconnect solutions. The shift toward chiplet architectures (where multiple smaller chips are combined into one package) creates additional interconnect complexity and higher ASPs. The company benefits from the broader trend of semiconductor companies outsourcing IP development rather than building internally, driven by cost pressures and the specialized expertise required. **Margin pressures** could arise from competitive pricing in commodity markets, economic downturns affecting customer chip volumes (impacting royalties), and the need for continuous R&D investment to stay ahead of rapidly evolving semiconductor technologies. Currency fluctuations and geopolitical tensions, particularly affecting the Chinese market, also present potential headwinds. However, the company's high gross margins (around 90-92%) provide substantial cushion, and their specialized technology creates some pricing power in complex, high-performance applications.
Competitive moat
Arteris possesses a **moderate but meaningful competitive moat** built primarily on technical expertise, customer switching costs, and network effects. The company's strongest defensive position comes from the **high switching costs** associated with their IP - once a semiconductor company designs Arteris interconnect technology into a chip, replacing it requires significant re-engineering effort, time, and validation costs that can span multiple years and millions of dollars in development expenses. The company has built **deep technical expertise** over two decades in a highly specialized field where few companies possess comparable knowledge. Their IP has been proven in over 3 billion shipped systems, creating a track record that reduces risk for customers in an industry where chip failures can be catastrophically expensive. The **network effects** strengthen as more customers adopt their technology, allowing Arteris to gather insights about design challenges and optimize their solutions across different use cases. However, the moat faces several **vulnerability points**. The primary competition comes not from other IP vendors but from customers' internal development teams, meaning Arteris must continuously prove their value proposition against "build versus buy" decisions. Large semiconductor companies like Intel, AMD, or Qualcomm have the resources to develop competing technologies internally if they choose. Additionally, open-source alternatives and new architectural approaches (like RISC-V ecosystems) could potentially disrupt traditional IP licensing models. The **competitive landscape** is evolving as system complexity increases - while this creates opportunities for Arteris, it also attracts new entrants and could motivate larger players to develop internal capabilities. The company's expansion into AI-driven design automation tools (FlexGen) represents an attempt to strengthen their moat by making their solutions increasingly difficult to replicate, but this also requires continuous innovation investment to maintain technological leadership.
Risks & safety
**Overall Assessment**: Moderate financial risk with improving cash flow trends but still burning cash and carrying debt burden. **Cash and Liquidity Position**: - Cash and short-term investments: $16.4 million (Q1 2025) - Declining cash position from $37.4 million in 2022 to current levels - Positive free cash flow achieved in recent quarters ($2.7 million in Q1 2025) - Current ratio of 1.02, indicating tight liquidity position **Debt and Solvency**: - Total liabilities exceed total assets ($103.1M vs $98.3M) - Negative shareholders' equity position - Debt-to-equity ratio of -0.94 (negative due to negative equity) - Company targeting positive free cash flow for full year 2025 **Valuation Metrics**: - Trading at 8.35x revenue (based on current price and trailing revenue) - Negative P/E ratio due to losses (-8.7x based on Q1 2025) - EV/EBITDA of -8.8x (negative due to negative EBITDA) **Other Considerations**: - Revenue growth trending positively (28% year-over-year in Q1 2025) - High gross margins (90-92%) provide operational leverage potential - Remaining Performance Obligations of $88.9 million provide revenue visibility - Annual Contract Value plus royalties growing at 15% year-over-year
Recent development
Over the past few years, Arteris has executed several strategic pivots to capitalize on emerging semiconductor trends. The most significant development has been their **aggressive expansion into AI-related markets**, with AI applications now representing over 55% of their total business across all verticals. This shift reflects the company's recognition that AI workloads require more sophisticated interconnect solutions due to their complex memory access patterns and computational demands. The company launched **FlexGen Smart NoC IP technology** in 2024, representing a major technological leap that uses artificial intelligence to automate interconnect design. This product promises up to 10x improvements in engineering productivity and has attracted over 20 customer evaluation projects. FlexGen addresses a critical industry pain point by reducing manual design iteration by over 90% and potentially improving wire length efficiency by up to 30%. **Market expansion initiatives** include entry into the microcontroller market with wins from major customers like Infineon and GigaDevice, and deeper penetration into the automotive sector where they're seeing increased direct engagement with OEMs developing their own chips. The company has also strengthened their ecosystem partnerships, joining Intel's Foundry Accelerator Program, the Chiplet Alliance, and IMEC's Automotive Chiplet Forum. **Geographic and operational expansion** includes opening a new engineering center in Kraków, Poland, and building stronger relationships with foundry partners. The company has maintained their technology-agnostic approach, supporting ARM, RISC-V, and x86 processor architectures, positioning them to benefit from the industry's architectural diversification trends. **Product portfolio evolution** has seen the successful launch and adoption of FlexNoC 5, which now represents the majority of FlexNoC sales and commands approximately 33% higher ASPs than previous versions. The company has also expanded beyond pure interconnect IP into system-level IP blocks and software tools, targeting what they estimate as a $1-1.2 billion total addressable market across NoC IP, SoC integration software, and system IP blocks.
AIP company profile · for informational purposes only — not investment advice.
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