Arteris shows elite Rule-of-40 growth economics, but a failed momentum gate, negative risk-reward asymmetry, extreme insider selling of 2.09% of market cap, and elevated implied volatility argue for caution even as the growth story remains intact.
Thesis pillars
- Elite Rule Of 40 Growth→Stable
- Failed Momentum Negative Asymmetry→Stable
- Extreme Insider Selling→Stable
- +2 more pillars — see the Why tab for full reasoning
Arteris, Inc. (AIP) Stock Analysis
Range Bound setup
Technology · Semiconductors
Sell if holding. Engine safety override at $33.33: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: Elevated put/call ratio: 2.25; Below-average business quality; Rich valuation.
Arteris develops semiconductor system IP — network-on-chip interconnect technology and SoC Integration Automation software — that manages on-chip data movement for aerospace/defense, automotive, communications, consumer electronics, and industrial customers. The company licenses... Read more
Sell if holding. Engine safety override at $33.33: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: Elevated put/call ratio: 2.25; Below-average business quality; Rich valuation. Chart setup: RSI 46 mid-range, Bollinger mid-band. Score 5.0/10, moderate confidence.
Passes 3/8 gates (news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About Arteris, Inc.
About Arteris, Inc.
Arteris, Inc. generated $70.6 million in revenue in 2025, up from $57.7 million in 2024, licensing network-on-chip interconnect and SoC Integration Automation software that has been incorporated into more than four billion production semiconductors since the company's 2003 founding. The company maintains roughly 90% average customer retention and employed 170 development engineers as of December 31, 2025, serving aerospace and defense, automotive, communications, consumer electronics, enterprise computing, and industrial markets.
Arteris earns revenue primarily through technology license fees plus ongoing royalties, layered with support and maintenance fees, and licenses its interconnect IP directly to semiconductor and system companies rather than end-users — a model where Annual Contract Value reached $77.0 million and ACV plus royalties reached $83.6 million as of December 31, 2025. Design wins typically take six to nine months to close and carry a long tail before royalty revenue materializes, since customers must first embed the IP at the design stage and then reach volume production. The company competes against in-house development teams at larger semiconductor firms as well as third-party IP providers such as Arm and Cadence, and names automotive customers including Mobileye, Renesas, Socionext, NXP, BMW, and Bosch. Growth has also come through acquisition: Magillem (2020), Semifore (2022), and Cycuity (2026) added SoC integration automation and hardware chip-level security verification to the core interconnect business.
Show full overview
Arteris's Item 1A risk factors disclose that a significant portion of revenue in any given period may depend on a single product design win with a large customer, meaning the loss of one design win or a delay in a customer's volume-production ramp could materially affect results — a customer-concentration risk distinct from the platform-scale story in the filing's business overview. The company also flags competitive pressure from Arm and Cadence, both of which possess substantially greater financial and engineering resources, and cites the Israel-Gaza conflict as a source of continuing uncertainty for customers operating in the affected region.
See also: Technology · Semiconductors
From Arteris, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-23Recent Developments — Arteris, Inc.
Latest news
- NEWS Arteris Expands Its Partnership With Arm To Improve Security Assurance For Processor Core Development — benzinga Jul 14, 2026 positive
- NEWS 12 Information Technology Stocks Moving In Thursday's Intraday Session — benzinga Jul 2, 2026 neutral
- NEWS Crude Oil Down Over 1%; US Initial Jobless Claims Fall — benzinga Jul 2, 2026 neutral
Generated 2026-07-25T09:22:35Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomersingle design win with a large customer10-K Item 1A: 'a significant portion of our revenue in any period may depend on a single product design win with a large customer'
Material Events(8-K, last 90d)
- 2026-05-12Item 5.02MEDIUMCFO Nick Hawkins notified the company on May 8, 2026 that he will retire effective August 31, 2026, due to a family illness. He will continue as an advisor post-retirement to facilitate an orderly transition. No disagreement with the company or its independent auditors cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
4 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Volatile — 8.0% daily ATR makes tight stops impractical. Position-size conservatively.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $33.33: Risk below floor (2.9 < 3.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: Elevated put/call ratio: 2.25; Below-average business quality; Rich valuation. Chart setup: RSI 46 mid-range, Bollinger mid-band. Prior stop was $31.00. Score 5.0/10, moderate confidence.
Take-profit target: $49.25 (-0.3% upside). Prior stop was $31.00. Stop-loss: $31.00.
Target reached (-0.3% upside); Risk below floor (2.9 < 3.0).
Arteris, Inc. trades at a P/E of N/A (forward 212.9). TrendMatrix value score: 2.6/10. Verdict: Sell.
8 analysts cover AIP with a consensus score of 3.9/5. Average price target: $38.
What does Arteris, Inc. do?Arteris develops semiconductor system IP — network-on-chip interconnect technology and SoC Integration Automation...
Arteris develops semiconductor system IP — network-on-chip interconnect technology and SoC Integration Automation software — that manages on-chip data movement for aerospace/defense, automotive, communications, consumer electronics, and industrial customers. The company licenses this technology under a license-fee-plus-royalty model, generating $70.6 million in revenue in 2025 versus $57.7 million in 2024, while posting a $34.7 million net loss. Acquisitions of Magillem, Semifore, and Cycuity added integration-automation and hardware-security capabilities to its interconnect IP core.