ArterisAIP -0.29%59 Gross Margin % is 85.83% as of Mar. 2026, which is 5% below its 10-year median of 90.54. GuruFocus rates AIP with a GF Score™ of 59/100 and a GF Value™ of $9.89 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,011 Semiconductors companies, Arteris ranks better than 98.32% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Arteris's Gross Profit for the
three
months ended in Mar. 2026 was $19.69 Mil. Arteris's Revenue for the
three
months ended in Mar. 2026 was $22.94 Mil. Therefore, Arteris's Gross Margin % for the quarter that ended in Mar. 2026 was 85.83%.
The historical rank and industry rank for Arteris's Gross Margin % or its related term are showing as below:
AIP'
s Gross Margin % Range Over the Past 10 Years
Min: 88.8 Med: 90.54 Max: 95.31
Current: 88.8
During the past 7 years, the highestGross Margin % of Arteris was 95.31%. The lowest was 88.80%. And the median was 90.54%.
AIP's Gross Margin % is ranked better than 98.32% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs AIP: 88.80
Arteris had a gross margin of 85.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Arteris was -0.90% per year.
Arteris (NAS:AIP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Arteris had a gross margin of 85.83% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Arteris Gross Margin % Related Terms
Arteris Gross Margin % Historical Data
* Premium members only.
The historical data trend for Arteris's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AIP vs AMBQ, SKYT, AOSL: Gross Margin % Comparison
For the Semiconductors subindustry, Arteris's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Arteris Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Arteris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arteris's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Arteris (AIP) has a Gross Margin % of 85.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arteris and its competitors. This is near median its historical median of 90.54. Over the past decade, Arteris' Gross Margin % has ranged from 88.80 to 95.31. According to the industry distribution chart, Arteris ranks #17 out of 1011 companies in the Semiconductors industry, placing it in the top 1.7%.
Is Arteris' Gross Margin % too high?
Arteris' current Gross Margin % of 85.83% is near median its 10-year median of 90.54. Over the past 10 years, this metric has ranged from a low of 88.80 to a high of 95.31. The Semiconductors industry median Gross Margin % is 29.61. Arteris' value of 85.83% is 189.9% above this industry median. Based on the distribution chart, Arteris ranks #17 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Arteris has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arteris' Gross Margin % compare to AMBQ and SKYT?
According to the Semiconductors industry distribution chart, Arteris ranks #17 out of 1011 companies for Gross Margin %. This places Arteris in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Arteris' value of 85.83% is 189.9% above this benchmark. Historically, Arteris' own Gross Margin % has ranged from 88.80 to 95.31 over the past decade. While the company's 10-year median is 90.54 vs. the industry median of 29.61, Arteris has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arteris's current Gross Margin % of 85.83% is 189.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Arteris and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arteris's current Gross Margin % is 85.83%, which is near median its own 10-year median of 90.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arteris stock overvalued right now?
Based on GuruFocus' analysis, Arteris (AIP) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.89, compared to a current price of $41.03 — trading 314.9% above its estimated fair value. The current Gross Margin % is 85.83%, which is near median its 10-year median of 90.54 and 189.9% above the Semiconductors industry median of 29.61. Arteris' overall GF Score™ is 59/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Arteris (AIP), the current Gross Margin % is 85.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arteris (AIP) Overvalued in 2026?
Based on GuruFocus' analysis, Arteris stock appears to be overvalued.
The current stock price of $41.03 is trading 314.9% above its estimated GF Value™ of $9.89.
GuruFocus considers Arteris to be Significantly Overvalued.
Key valuation signals for AIP:
Gross Margin %: 85.83% (near median its 10-year median of 90.54)
GF Value™: $9.89 vs. price of $41.03 (314.9% above fair value)
Industry Position: 189.9% above the Semiconductors median (#17 of 1011)
No single metric tells the full story. See the AIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arteris Inc is a provider of semiconductor system IP, including interconnect and other intellectual property, (collectively, System IP) technology. Its IP technology manages the on-chip communications and IP block deployments in System-on-Chip (SoC) semiconductors and systems of chiplets. Its proprietary System IP solutions achieve this by connecting client IP blocks such as processors, memories, artificial intelligence/machine learning (AI/ML) accelerators, graphics subsystems, safety and security, and other input/output subsystems (I/Os) via multiple Network-on-Chips (NoCs). The company operates in Americas, Asia Pacific and Europe, Middle East, out of which it derives maximum its revenue from Asia Pacific.
59GF Score
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