Arteris, Inc.

Arteris, Inc.

AIPยทNASDAQ

$37.44

+4.0%
TechnologySemiconductors

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.

At a Glance

Live Snapshot
Market Cap$1.73B
EPS-0.8200
P/E Ratio-45.66
Earnings Date08/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -45.7).

Valuation inputs: P/E -45.7, earnings yield N/A, momentum +4.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +2.4%, ROIC -74.9%).

Profitability stack: net margin -49.2%, ROE +2.4%, ROIC -74.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +112.7%, momentum +4.0%, net margin -49.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Arteris, Inc. Market vs Earnings Trajectory

AIP ยท NASDAQ

Loading price and EPS data...

Arteris, Inc.

Arteris, Inc. Fair Value Envelope

AIP ยท NASDAQ

Our analysis suggests that AIP has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $37.44, this represents a potential HIDDEN relative to our calculated worth for Arteris, Inc..

Intrinsic Value
Current Price: $37.44
3Y-2.0%
5Y+720.0%
10Y-490.0%
3Y+40.0%
5Y+122.0%
10Y+124.0%
3Y+27.0%
5Y+966.0%
10Y-695.0%
3Y-199.0%
5Y+211.0%
10Y-45.0%
3Y-168.0%
5Y+254.0%
10Y-55.0%
3Y-
5Y+169.0%
10Y+329.0%
Arteris, Inc.

Arteris, Inc. Profit Bridge

AIP ยท NASDAQ
Revenue70.58M
Cost of Goods Sold (6.89M)
Gross Profit63.68M
Operating Expenses (96.82M)
Operating Income-33.14M
Interest Expense (193.00K)
Other Income/Expense-134.00K
Pretax Income-33.27M
Income Tax (1.48M)
Net Income-34.75M
Net Income
-34.75M

Profitability Analysis

Gross Margin

90.2%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

-47.0%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-49.2%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

90.23%
Gross Profit Margin
1%
3Y-1.0%
5Y-5.0%
10Y-4.0%
-46.95%
Operating Profit Margin
-14%
3Y-18.0%
5Y+295.0%
10Y-303.0%
-49.23%
Net Profit Margin
-16%
3Y-9.0%
5Y+380.0%
10Y-366.0%
237.47%
Return on Equity
-92%
3Y-425.0%
5Y+359.0%
10Y-484.0%
-30.21%
Return on Assets
-5%
3Y+27.0%
5Y+296.0%
10Y-239.0%
-74.92%
Return on Invested Capital
17%
3Y+95.0%
5Y+227.0%
10Y-212.0%
AIP

Arteris, Inc. Cash Conversion Engine

AIP ยท NASDAQ
Net Income-8.50M
Depreciation & Amortization3.38M
Stock-Based Compensation18.38M
Change in Working Capital17.86M
Others-24.37M
Capital Expenditures-1.39M
Free Cash Flow5.34M

Cash Flow Quality Analysis

FCF Conversion Rate

-62.9%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

20.6%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+612.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$17.86M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

aip

Arteris, Inc. Funding & Solvency Profile

AIP ยท NASDAQ
Cash & Cash Equivalents11.67M
Net Receivables14.69M
Inventory0.00
Other Current Assets8.74M
Total Current Assets62 M
Property, Plant & Equipment8.76M
Goodwill & Intangible Assets54.74M
Long-Term Investments3.78M
Other Non-Current Assets11.06M
Total Non-Current Assets24 M
Total Assets
139.88M

Financial Health Analysis

Current Ratio

0.73x

Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.

Debt-to-Equity Ratio

52.99x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

-22985000

Negative working capital indicates short-term liabilities exceed short-term assetsโ€”potential liquidity stress.

Asset Composition

44% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.

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Arteris, Inc. Street Expectations Map

AIP ยท NASDAQ

Wall Street analysts project that AIP stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 36.50, with estimates ranging from a low of 35.00 to a high of 38.00.

Lowest Target
35.00
-6.52%
Consensus Target
36.50
-2.51%
Highest Target
38.00
1.50%

The consensus 1-year price target stands at 36.50, with estimates ranging from a low of 35.00 to a high of 38.00.

Analyst Consensus Analysis

Upside Potential

-2.5%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

8.2% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

0.23x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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Arteris, Inc. Insider Positioning

AIP ยท NASDAQ

During the last 12 months, insiders have sold $36.47M worth of AIP shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

741.9K

19.17M

Net Activity

-19.2M

-$19.17M

3-6 Months

Bought

0

0.00

Sold

670.0K

11.39M

Net Activity

-11.4M

-$11.39M

6-9 Months

Bought

0

0.00

Sold

372.7K

5.91M

Net Activity

-5.9M

-$5.91M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
JKC

Janac K Charles

Director, 10 Percent Owner, Officer: President And Ceo

537.6K sharesโ€ข17 transactions

$10.14M

2
BLL

Bayview Legacy, Llc

10 Percent Owner

520.0K sharesโ€ข13 transactions

$9.85M

3
RSA

Raza Saiyed Atiq

Director

380.0K sharesโ€ข8 transactions

$8.01M

4
VAJ

Viana Antonio J

Director

95.5K sharesโ€ข5 transactions

$2.46M

5
HNB

Hawkins Nicholas B.

Officer: Vp And Chief Financial Officer

64.4K sharesโ€ข6 transactions

$2.00M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $36.47M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$19.17M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

AIP has not reported any dividend yield values in the available annual periods.

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aip Dividend History

AIP
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%