Arteris (AIP, Financial) is advancing in the semiconductor sector by expanding its multi-die solutions, a move that is set to foster rapid innovations in chiplet-based technology. In a market increasingly driven by computational demands that surpass traditional monolithic die designs, this development marks a significant transition. Arteris is positioning itself at the forefront of this shift by providing automated, standards-based solutions that are tested and proven in silicon. These solutions facilitate the smooth integration of IP cores, chiplets, and system-on-chips (SoCs), addressing the growing need for enhanced computational power.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Arteris Inc (AIP, Financial) is $12.25 with a high estimate of $16.00 and a low estimate of $9.00. The average target implies an upside of 49.03% from the current price of $8.22. More detailed estimate data can be found on the Arteris Inc (AIP) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Arteris Inc's (AIP, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Arteris Inc (AIP, Financial) in one year is $8.52, suggesting a upside of 3.65% from the current price of $8.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Arteris Inc (AIP) Summary page.
AIP Key Business Developments
Release Date: May 13, 2025
- Total Revenue: $16.5 million, up 28% year-over-year.
- Annual Contract Value plus Royalties: $66.8 million, up 15% year-over-year.
- Remaining Performance Obligations (RPO): $88.9 million, representing a 19% year-over-year increase.
- Non-GAAP Gross Profit: $15.3 million, with a gross margin of 92%.
- GAAP Gross Profit: $15.0 million, with a gross margin of 91%.
- Non-GAAP Operating Expense: $18.4 million, up 9% sequentially and 8% year-over-year.
- Total GAAP Operating Expense: $22.7 million, representing a 10% year-over-year increase.
- Non-GAAP Operating Loss: $3.2 million, a 40% improvement compared to the prior year period.
- GAAP Operating Loss: $7.7 million, compared to a loss of $9.1 million in the prior year period.
- Non-GAAP Net Loss: $3.6 million or $0.09 per share.
- GAAP Net Loss: $8.1 million or $0.20 per share.
- Cash, Cash Equivalents, and Investments: $55.1 million, with no financial debt.
- Free Cash Flow: Positive $2.7 million for the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Arteris Inc (AIP, Financial) achieved a record annual contract value plus royalties of $66.8 million in Q1 2025, indicating strong demand for its products.
- The company generated $2.7 million in non-GAAP positive free cash flow, showcasing effective financial management.
- Arteris Inc (AIP) reported a 28% year-over-year increase in total revenue, reaching $16.5 million, exceeding the top end of its guidance range.
- The company secured several key design wins, including from top global technology companies and automotive OEMs, expanding its customer base.
- Arteris Inc (AIP) continues to innovate, with the release of new technologies like FlexGen and Magillem register management automation software, enhancing its product offerings.
Negative Points
- Economic uncertainty and trade challenges present potential short-term headwinds, particularly affecting royalties and customer confidence.
- The weakening US dollar could increase overseas operational expenses, impacting financial outcomes.
- Non-GAAP operating expenses increased by 9% sequentially and 8% year-over-year, driven by certain nonlinear expenses and currency fluctuations.
- The company reported a non-GAAP operating loss of $3.2 million, although this was an improvement from the previous year.
- Arteris Inc (AIP) widened its guidance ranges due to economic turbulence, indicating uncertainty in forecasting future financial performance.
