Arteris Reports Record Q4 2025 Earnings and Strategic Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AIP?
Source: seekingalpha
- Record Performance: In Q4 2025, Arteris achieved a total annual contract value plus royalties of $83.6 million, marking a 28% year-over-year increase, driven by robust demand in enterprise computing, automotive, and consumer electronics, thereby solidifying its position in the rapidly growing semiconductor market.
- Acquisition of Cycuity: Arteris announced the acquisition of Cycuity, which brings a strong history of collaboration in early detection of cybersecurity risks in semiconductor hardware and firmware, thereby enhancing Arteris' product value and market reach.
- Strong Product Adoption: The FlexGen AI-driven Smart NoC IP product has seen strong adoption, licensed for over 30 production device deployments across various vertical markets, including customers like AMD, Dream Chip, and NanoXplore, showcasing the broad applicability of Arteris technology.
- Optimistic Outlook: The company expects Q1 2026 ACV plus royalties to range from $85 million to $89 million, with full-year revenue projected between $89 million and $93 million, reflecting Arteris' confidence in achieving profitability, with a non-GAAP operating profit anticipated as early as Q4 2026.
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Analyst Views on AIP
Wall Street analysts forecast AIP stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.100
Low
16.50
Averages
19.17
High
21.00
Current: 15.100
Low
16.50
Averages
19.17
High
21.00
About AIP
Arteris, Inc. is a provider of semiconductor system IP, including interconnect and other intellectual property, (collectively, System IP) technology. Its System IP technology manages the on-chip communications and IP block deployments in System-on-Chip (SoC) semiconductors and systems of chiplets. It provides semiconductor interconnect IP and SoC Integration Automation software solutions to serve its target end-markets, including automotive, enterprise computing, consumer electronics, communications across wired and wireless, and industrial markets. Its two core product platforms are Network-on-Chip IP Products and SoC Integration Automation Software Solutions Products. Its Network-on-Chip IP products include Non-coherent NoC IP, with FlexGen, FlexNoC and FlexWay; Cache-coherent NoC IP, with Ncore, and NoC interface IP, with CodaCache. Its SoC Integration Automation Software Solutions products include IP and SoC software, with Magillem (Connectivity and Registers) and CSRCompiler.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Arteris Reports Record Q4 2025 Earnings and Strategic Acquisition
- Record Performance: In Q4 2025, Arteris achieved a total annual contract value plus royalties of $83.6 million, marking a 28% year-over-year increase, driven by robust demand in enterprise computing, automotive, and consumer electronics, thereby solidifying its position in the rapidly growing semiconductor market.
- Acquisition of Cycuity: Arteris announced the acquisition of Cycuity, which brings a strong history of collaboration in early detection of cybersecurity risks in semiconductor hardware and firmware, thereby enhancing Arteris' product value and market reach.
- Strong Product Adoption: The FlexGen AI-driven Smart NoC IP product has seen strong adoption, licensed for over 30 production device deployments across various vertical markets, including customers like AMD, Dream Chip, and NanoXplore, showcasing the broad applicability of Arteris technology.
- Optimistic Outlook: The company expects Q1 2026 ACV plus royalties to range from $85 million to $89 million, with full-year revenue projected between $89 million and $93 million, reflecting Arteris' confidence in achieving profitability, with a non-GAAP operating profit anticipated as early as Q4 2026.
See More
Arteris (AIP) Q4 2025 Earnings Call Transcript
See More
Arteris Grants 477,208 RSUs to 25 New Employees as Inducement Awards
- Employee Incentive Plan: Arteris has granted a total of 477,208 restricted stock units (RSUs) to 25 newly hired employees under its 2022 Employee Inducement Incentive Plan, aimed at attracting and retaining talent to enhance its competitiveness in the semiconductor industry.
- Compliance Assurance: The stock grants comply with Nasdaq Listing Rule 5635(c)(4), ensuring transparency and compliance in the company's incentive measures, thereby boosting investor confidence.
- Strategic HR Investment: This stock incentive not only attracts high-quality talent but also enhances employee engagement and motivation, driving the company's technological innovation and market expansion in the AI era.
- Technological Leadership: As a leading provider of semiconductor technology, Arteris is committed to accelerating the creation of high-performance, power-efficient silicon, further solidifying its market leadership in the modern AI era.
See More
Arteris Acquires Cycuity to Enhance Semiconductor Security
- Acquisition Completed: Arteris, Inc. has finalized its acquisition of Cycuity, Inc., a leading provider of semiconductor cybersecurity technology, which will enhance Arteris's capabilities in semiconductor security to meet the growing market demand.
- Surging Market Demand: According to the U.S. National Institute of Standards and Technology (NIST), the number of new Common Vulnerabilities and Exposures (CVEs) in hardware has increased over 15 times in the past five years, highlighting the critical importance of semiconductor security, and Arteris's acquisition is a proactive response to this trend.
- Technological Integration Advantage: By combining Arteris's innovative system IP with Cycuity's hardware security technology, Arteris can offer more comprehensive products and solutions that help customers achieve secure on-chip data movement, thereby enhancing overall market competitiveness.
- Clear Strategic Positioning: This acquisition not only strengthens Arteris's product portfolio but also demonstrates the company's long-term commitment to semiconductor security, which is expected to drive further growth in the AI and edge device markets.
See More
Friday's Underperforming Sectors: Semiconductors and Computer Peripherals
Market Performance: Computer peripherals shares are down approximately 3.8%, with Seagate Technology Holdings and Logitech International leading the decline at 7% and 5.8%, respectively.
Sector Laggards: The semiconductor and computer peripherals sectors are identified as laggards in the market on Friday.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Video Content: A video segment highlights the Friday sector laggards, focusing on semiconductors and computer peripherals.
See More
Arteris Acquires Cycuity to Enhance Semiconductor Security
- Strategic Acquisition: Arteris has signed a definitive agreement to acquire Cycuity, which will enhance its semiconductor cybersecurity product portfolio, addressing the growing hardware security needs and potentially increasing customer trust in data security.
- Market Demand: With reported hardware vulnerabilities increasing over 15 times in the past five years, this acquisition will enable Arteris' customers to achieve secure data movement in AI data centers and edge devices, ensuring system integrity.
- Technology Integration: Cycuity's Radix software products will seamlessly integrate with Arteris' system IP solutions, assisting designers in identifying and resolving security risks prior to silicon implementation, thereby enhancing product competitiveness in the market.
- Future Outlook: The transaction is expected to close in the first quarter of fiscal year 2026, marking a significant step for Arteris in the semiconductor security domain and positioning the company to lead in a rapidly evolving market.
See More
Arteris Reports Record Q4 2025 Earnings and Strategic Acquisition
- Record Performance: In Q4 2025, Arteris achieved a total annual contract value plus royalties of $83.6 million, marking a 28% year-over-year increase, driven by robust demand in enterprise computing, automotive, and consumer electronics, thereby solidifying its position in the rapidly growing semiconductor market.
- Acquisition of Cycuity: Arteris announced the acquisition of Cycuity, which brings a strong history of collaboration in early detection of cybersecurity risks in semiconductor hardware and firmware, thereby enhancing Arteris' product value and market reach.
- Strong Product Adoption: The FlexGen AI-driven Smart NoC IP product has seen strong adoption, licensed for over 30 production device deployments across various vertical markets, including customers like AMD, Dream Chip, and NanoXplore, showcasing the broad applicability of Arteris technology.
- Optimistic Outlook: The company expects Q1 2026 ACV plus royalties to range from $85 million to $89 million, with full-year revenue projected between $89 million and $93 million, reflecting Arteris' confidence in achieving profitability, with a non-GAAP operating profit anticipated as early as Q4 2026.
See More
Arteris (AIP) Q4 2025 Earnings Call Transcript
See More
Arteris Grants 477,208 RSUs to 25 New Employees as Inducement Awards
- Employee Incentive Plan: Arteris has granted a total of 477,208 restricted stock units (RSUs) to 25 newly hired employees under its 2022 Employee Inducement Incentive Plan, aimed at attracting and retaining talent to enhance its competitiveness in the semiconductor industry.
- Compliance Assurance: The stock grants comply with Nasdaq Listing Rule 5635(c)(4), ensuring transparency and compliance in the company's incentive measures, thereby boosting investor confidence.
- Strategic HR Investment: This stock incentive not only attracts high-quality talent but also enhances employee engagement and motivation, driving the company's technological innovation and market expansion in the AI era.
- Technological Leadership: As a leading provider of semiconductor technology, Arteris is committed to accelerating the creation of high-performance, power-efficient silicon, further solidifying its market leadership in the modern AI era.
See More
Arteris Acquires Cycuity to Enhance Semiconductor Security
- Acquisition Completed: Arteris, Inc. has finalized its acquisition of Cycuity, Inc., a leading provider of semiconductor cybersecurity technology, which will enhance Arteris's capabilities in semiconductor security to meet the growing market demand.
- Surging Market Demand: According to the U.S. National Institute of Standards and Technology (NIST), the number of new Common Vulnerabilities and Exposures (CVEs) in hardware has increased over 15 times in the past five years, highlighting the critical importance of semiconductor security, and Arteris's acquisition is a proactive response to this trend.
- Technological Integration Advantage: By combining Arteris's innovative system IP with Cycuity's hardware security technology, Arteris can offer more comprehensive products and solutions that help customers achieve secure on-chip data movement, thereby enhancing overall market competitiveness.
- Clear Strategic Positioning: This acquisition not only strengthens Arteris's product portfolio but also demonstrates the company's long-term commitment to semiconductor security, which is expected to drive further growth in the AI and edge device markets.
See More
Friday's Underperforming Sectors: Semiconductors and Computer Peripherals
Market Performance: Computer peripherals shares are down approximately 3.8%, with Seagate Technology Holdings and Logitech International leading the decline at 7% and 5.8%, respectively.
Sector Laggards: The semiconductor and computer peripherals sectors are identified as laggards in the market on Friday.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Video Content: A video segment highlights the Friday sector laggards, focusing on semiconductors and computer peripherals.
See More
Arteris Acquires Cycuity to Enhance Semiconductor Security
- Strategic Acquisition: Arteris has signed a definitive agreement to acquire Cycuity, which will enhance its semiconductor cybersecurity product portfolio, addressing the growing hardware security needs and potentially increasing customer trust in data security.
- Market Demand: With reported hardware vulnerabilities increasing over 15 times in the past five years, this acquisition will enable Arteris' customers to achieve secure data movement in AI data centers and edge devices, ensuring system integrity.
- Technology Integration: Cycuity's Radix software products will seamlessly integrate with Arteris' system IP solutions, assisting designers in identifying and resolving security risks prior to silicon implementation, thereby enhancing product competitiveness in the market.
- Future Outlook: The transaction is expected to close in the first quarter of fiscal year 2026, marking a significant step for Arteris in the semiconductor security domain and positioning the company to lead in a rapidly evolving market.
See More
