AIP

Technology

Arteris, Inc. · Semiconductors · $2B

UQS Score — Balanced Preset
32.3
Below Average

Arteris, Inc. scores 32.3/100 using the Balanced preset.

UQS vs Technology Sector
AIP
32.3
Sector avg
38.0
Quality
Weak
Moat
Weak
Growth
Good
Risk
Weak
Valuation
Elevated

What is Arteris, Inc.?

Arteris, Inc. is a semiconductor intellectual property company focused on on-chip interconnect technology used in System-on-Chip designs. Headquartered in Campbell, California, it serves chip designers across automotive, AI, 5G, and data center markets worldwide.

Arteris licenses Network-on-Chip (NoC) interconnect IP to semiconductor companies building complex SoC designs. Rather than manufacturing chips itself, the company earns royalties and licensing fees when customers integrate its technology into their silicon. It also sells IP deployment software that helps engineers specify, design, and document interconnect architectures. Customers span automotive safety systems, AI accelerators, 5G base stations, and consumer electronics — markets where efficient on-chip data movement is increasingly critical.

Arteris was founded in 2003 and is headquartered in Campbell, California.

  • FlexNoC — silicon-proven on-chip interconnect IP for SoC designs
  • Ncore — cache-coherent interconnect IP for scalable multi-core chips
  • CodaCache — last-level cache semiconductor IP product
  • FlexNoC Resilience Package — on-chip data protection for safety-critical applications
  • IP deployment software — AI-assisted specification, design, and documentation tools

Is AIP a Good Stock to Buy?

UQS Score rates AIP as Below Average overall, reflecting meaningful challenges across several quality dimensions.

The Growth and Risk pillars both land at Neutral, suggesting the business is not in freefall — end markets like automotive silicon and AI-driven SoC complexity continue to expand, providing a structural demand backdrop for interconnect IP.

Both the Quality and Moat pillars register as Weak, indicating the business has yet to demonstrate durable competitive advantages or the financial profile typical of established IP licensors. The Valuation pillar reads as Elevated, meaning the market is pricing in optimism that the fundamentals have not yet confirmed.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does AIP pay dividends?

No — Arteris, Inc. does not currently pay a dividend.

Arteris does not currently pay a dividend. As an early-stage IP licensor still investing heavily in product development and market expansion, the company directs available capital toward R&D and growth initiatives rather than shareholder distributions. Income-focused investors should factor this into their assessment.

When does AIP report earnings?

Arteris reports earnings on a quarterly cadence, consistent with standard practice for US-listed technology companies.

The company's quarterly results tend to reflect the pace of new license signings and royalty ramp from previously deployed designs. Because revenue recognition in IP licensing can be lumpy, individual quarters may vary meaningfully from the underlying trend.

For the most recent quarter's results and guidance, visit Arteris's investor relations page directly.

AIP Price History

+5.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Arteris, Inc.?

$
Today it would be worth
$40,515
That's a +305% total return, or +305% annualized.

Based on Arteris, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

AIP Long-term Outlook

The Growth pillar sitting at Neutral points to a business that is expanding but has not yet achieved the kind of accelerating trajectory that would shift the overall UQS profile higher. End-market tailwinds — particularly AI chip complexity and automotive electrification — create a plausible path for licensing volume to grow. However, the Weak Quality and Moat scores, combined with an Elevated Valuation, mean execution risk remains a central concern for the forward outlook.

Growth drivers

  • Rising SoC complexity in AI and machine learning chips increasing demand for advanced NoC IP
  • Automotive electrification and ADAS driving adoption of safety-certified interconnect solutions
  • Expansion of IP deployment software as a recurring revenue layer alongside traditional licensing

Key risks

  • Weak Moat score suggests limited pricing power if larger EDA or IP vendors expand into NoC
  • Elevated Valuation leaves little margin for error if licensing growth disappoints
  • Lumpy, deal-driven revenue model creates quarter-to-quarter visibility challenges

AIP vs Peers

Arteris operates in the broader semiconductor IP and components space alongside several peers that approach the market from different angles.

AOSLAIP scores higher
Alpha and Omega Semiconductor Limited

Alpha and Omega designs and markets power semiconductors, competing for chip-design wallet share but focused on power management rather than interconnect IP.

WOLFAIP scores higher
Wolfspeed, Inc.

Wolfspeed manufactures silicon carbide power devices, serving automotive and industrial markets that overlap with Arteris's automotive customer base but through a fabrication-heavy model.

POETSimilar UQS
POET Technologies Inc.

POET Technologies develops optical interposer platforms, targeting chip-to-chip connectivity — an adjacent area to on-chip interconnect where technology paths may eventually converge.

Frequently Asked Questions

What does Arteris do?

Arteris develops and licenses Network-on-Chip interconnect intellectual property used inside complex System-on-Chip designs. Chip designers at automotive, AI, 5G, and data center companies integrate Arteris IP to manage how data moves between processing blocks on a single piece of silicon. The company also sells software tools that help engineers deploy that IP efficiently.

Does AIP pay dividends?

No, Arteris does not currently pay a dividend. The company is in a growth and investment phase, directing capital toward product development and market expansion rather than shareholder distributions. Investors seeking income should look elsewhere in the semiconductor space.

When does AIP report earnings?

Arteris reports financial results on a quarterly cadence, as is standard for US-listed companies. Specific dates shift each quarter, so check the company's investor relations page for the current schedule and the most recent results.

Is AIP a good stock to buy?

UQS Score rates AIP as Below Average, driven by Weak Quality and Moat scores alongside an Elevated Valuation. The Growth and Risk pillars are Neutral, reflecting a business with real end-market opportunity but unproven competitive durability. Whether that profile fits your portfolio depends on your risk tolerance and time horizon.

Is AIP overvalued?

The UQS Valuation pillar for AIP is rated Elevated, suggesting the current market price embeds meaningful optimism relative to the company's demonstrated financial quality. Investors should weigh that premium against the Weak Quality and Moat scores before drawing conclusions.

How does AIP compare to its competitors?

Arteris occupies a niche in pure-play interconnect IP licensing, which differs from peers like Wolfspeed (power device manufacturing) and Alpha and Omega Semiconductor (power management chips). POET Technologies targets optical interconnect, an adjacent but distinct technology. Each company's UQS profile differs — Pro members can compare pillar-level scores side by side.

What is AIP's market cap bracket?

Arteris is classified as a small-cap company. That places it in a segment of the market that can offer higher growth potential but typically carries greater liquidity risk and earnings volatility than large- or mega-cap peers in the semiconductor sector.

Who founded Arteris?

Arteris was founded in 2003. Founding details, including the names of original founders, are part of the company's publicly available corporate history — the Arteris website and SEC filings are reliable sources for that information.

Is AIP a long-term quality investment?

As a long-term quality indicator, the UQS Score for AIP currently sits at Below Average, with Weak readings on both Quality and Moat. Long-term quality investing typically favors companies with durable competitive advantages and consistent financial performance — areas where Arteris has not yet established a strong track record according to the UQS framework.

What is the main competitive advantage of Arteris?

Arteris's potential advantage lies in its specialized focus on NoC interconnect IP — a technically complex area where switching costs can be meaningful once a design is taped out. However, the UQS Moat pillar currently rates this advantage as Weak, indicating the company has not yet translated its specialization into a clearly defensible market position.

What sector does AIP belong to?

Arteris belongs to the Technology sector, specifically within semiconductor intellectual property. It sits alongside EDA vendors and other IP licensors rather than chip manufacturers, since Arteris licenses designs rather than fabricating silicon itself.

Is AIP a growth stock or value stock?

Based on the UQS profile, AIP leans toward a growth classification — the Growth pillar is Neutral and the Valuation pillar is Elevated, meaning the market is paying a premium for future potential. It does not exhibit the characteristics of a value stock, where price would be low relative to demonstrated financial quality.

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Pro Analysis

AIP — Score History

25303540Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 19 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202632.331.928.061.627.45.80.0
May 22, 202632.331.928.061.627.46.1-0.2
May 21, 202632.531.928.061.627.47.00.0
May 20, 202632.531.928.061.627.47.6-0.2
May 19, 202632.731.928.061.627.48.6+0.1
May 16, 202632.631.928.061.627.48.2+0.4
May 15, 202632.231.928.061.627.64.8+1.3
May 14, 202630.931.928.058.627.60.5-2.8
May 11, 202633.732.528.058.645.30.5+2.9
May 10, 202630.820.728.058.645.30.8-2.9

AIP — Pillar Breakdown

Quality

31.9/100 (25%)

Arteris, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

61.6/100 (20%)

Arteris, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

27.4/100 (15%)

Arteris, Inc. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

5.8/100 (15%)

Arteris, Inc. appears expensively valued relative to its fundamentals and growth prospects.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioWeak

P/E relative to earnings growth — lower is more attractive.

Moat

28/100 (25%)

Arteris, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AIP.

Score Composition

Quality
31.9×25%8.0
Growth
61.6×20%12.3
Risk
27.4×15%4.1
Valuation
5.8×15%0.9
Moat
28.0×25%7.0
Total
32.3Below Average

Financial Data

More Stock Analysis

How is the AIP UQS Score Calculated?

The UQS (Unified Quality Score) for Arteris, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Arteris, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Arteris, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.