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AIP: Expanded AI Wins Will Likely Fail To Justify Rich Expectations

Broader Partnerships And AI Adoption Will Shape Future Enterprise Demand

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AIP
AnalystConsensusTarget
Not Invested
Published 28 Mar 2025

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
58.3%
7D
-7.2%

Analysts have modestly raised their price target on Arteris to approximately $17.13 per share. This reflects slightly higher long term margin expectations and a marginally improved growth and risk profile.

What's in the News

  • Raised full year 2025 revenue guidance to a range of $68.8 million to $69.2 million, reflecting improved visibility into demand (company guidance)
  • Issued fourth quarter 2025 revenue guidance of $18.4 million to $18.8 million, providing investors with a near-term outlook on the growth trajectory (company guidance)
  • Expanded collaboration with Alibaba DAMO Academy's XuanTie RISC V CPU IP to deliver pre-verified SoC reference designs targeting edge AI, server, communications, and automotive applications (client announcement)
  • Secured multiple FlexNoC 5 and Ncore 3 IP licensing wins with AI- and data center-focused customers including Axelera AI, Blaize, Black Sesame Technologies, and 2V Systems, underscoring adoption in high performance compute and autonomous driving markets (client announcements)
  • Won FlexGen smart NoC IP design-in with NanoXplore for radiation-hardened, space-focused FPGA platforms, extending reach into mission-critical aerospace and defense applications (client announcement)

Valuation Changes

  • Fair Value: Unchanged at approximately $17.13 per share, indicating a stable central valuation view.
  • Discount Rate: Risen slightly from about 8.42 percent to 8.49 percent, reflecting a modestly higher perceived risk profile.
  • Revenue Growth: Essentially unchanged at roughly 19.47 percent, suggesting consistent long term top line expectations.
  • Net Profit Margin: Risen slightly from about 12.38 percent to 12.42 percent, pointing to a marginal improvement in long term profitability assumptions.
  • Future P/E: Edged down slightly from about 83.13 times to 83.01 times, signaling a very small reduction in the implied valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.