Market Overview - US stock indices opened mixed on August 5, later experiencing a collective drop, with all major indices turning negative by the time of reporting [1] - The Dow Jones Industrial Average closed at 44,004.55, down 169.09 points (-0.38%); the Nasdaq Composite at 20,995.61, down 57.97 points (-0.28%); and the S&P 500 at 6,307.92, down 22.02 points (-0.35%) [2] Chinese Stocks Performance - The Nasdaq China Golden Dragon Index saw a slight increase, with notable gains from several companies: Ascentage Pharma rose nearly 10%, Sohu increased over 6%, and Zhihu and Zai Ding Pharma both rose over 3% [3][4] Corporate Earnings and Stock Movements - Pfizer's stock rose over 5% after reporting Q2 revenue of $14.65 billion, a 10% year-over-year increase, driven by core drug sales growth [6][8] - Palantir Technologies experienced a significant increase of nearly 10%, with a market capitalization exceeding $400 billion, reporting Q2 revenue of $1.004 billion, a 48% year-over-year growth [9][10] - Arteris saw a surge of over 40% in its stock price, attributed to AMD's adoption of its new FlexGen interconnect technology for AI chip design [11][12]

Core Insights - Arteris, Inc. has announced a licensing agreement with AMD for its FlexGen network-on-chip (NoC) interconnect IP, aimed at enhancing the performance of AMD's next-generation AI chiplet designs [1][3] - The collaboration emphasizes the growing complexity of modern system-on-chip (SoC) and chiplet architectures, which require multiple specialized interconnects to meet the demands of contemporary electronic systems [2] Company Overview - Arteris is recognized as a leader in semiconductor system IP, focusing on accelerating the creation of high-performance, power-efficient silicon [5] - The FlexGen NoC IP technology is designed to optimize wire length, reduce latency, and improve power efficiency, addressing the needs of complex multi-die and chiplet-based designs [3][4] Strategic Collaboration - The integration of Arteris' FlexGen NoC IP with AMD's Infinity Fabric™ interconnect is expected to enhance performance and scalability for diverse applications, from data centers to edge devices [2][3] - This partnership aims to automate interconnect configuration and enable seamless connectivity among SoC components, strengthening AMD's AI compute portfolio [3] Technological Innovation - FlexGen leverages AI automation to improve design productivity and streamline iteration cycles, positioning companies to tackle the complexities of modern computing systems [4] - The technology can function as an independent interconnect solution or in conjunction with proprietary interconnect technologies, facilitating faster design iterations and market readiness [3]

Company Overview - Arteris, Inc. (AIP) shares increased by 12.2% to $10.6 in the last trading session, with a notable trading volume, contrasting with a 0.8% loss over the past four weeks [1] - The company is experiencing growth due to rising demand for commercial semiconductor system IP products, driven by the complexity of chiplet and SoC designs, the proliferation of AI applications, and outsourcing trends [1] Financial Expectations - Arteris is projected to report a quarterly loss of $0.11 per share, unchanged from the same quarter last year, with expected revenues of $16.4 million, reflecting a 12.6% increase year-over-year [2] - The consensus EPS estimate for Arteris has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Arteris operates within the Zacks Internet - Software industry, where another company, Paylocity (PCTY), saw a 2.2% increase in its stock price, closing at $190.36, with a 2.8% return over the past month [3] - Paylocity's consensus EPS estimate has increased by 1.8% to $1.38, although this represents a 6.8% decrease compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Viewpoint - Arteris, Inc. is set to release its financial results for Q2 2025 on August 5, 2025, after market close, with a conference call scheduled for the same day to discuss these results [1]. Company Overview - Arteris, Inc. is a leading provider of system IP aimed at accelerating system-on-chip (SoC) development, focusing on enhancing product performance while reducing power consumption and time to market [3]. - The company's network-on-chip (NoC) interconnect IP and SoC integration automation technology are designed to improve SoC economics, allowing customers to innovate further [3]. Investor Relations - A live webcast of the conference call will be available on the Investor Relations section of Arteris' website, and a replay will be accessible approximately two hours after the call for 30 days [2]. - Interested parties can join the conference call by dialing the provided toll-free and international numbers [1].

FlexNoC 5 network-on-chip interconnect IP from Arteris licensed by Whalechip, providing connectivity and enabling superior performance, area, and power for custom ASIC WHALECHIP Co., Ltd. is a fabless semiconductor and system solutions provider dedicated to technological innovation. They specialize in the development of HPC ASICs and processors and deliver HPC computing system-level solutions. Learn more at www.whalechip.com. © 2004-2025 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the ...

Accelerating The Creation Of Semiconductors Corporate Overview Charlie Janac CEO Nick Hawkins CFO November 2024 1 © 2024 Arteris, Inc. Disclaimer This presentation and the accompanying oral presentation have been prepared by Arteris, Inc. ("Arteris IP" or "the "Company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Arteris IP or any officer, director, employ ...

Core Insights - Arteris, Inc. has been awarded the "AI Engineering Innovation Award" for its FlexGen technology, which enhances system-on-chip (SoC) design for AI applications [1][4] - FlexGen automates the creation of network-on-chip (NoC) interconnects, addressing the complexities of AI-centric semiconductor designs [2][4] - Early adopters of FlexGen have reported significant productivity gains, including a 10x improvement in productivity, a 30% reduction in wire length, and a 10% reduction in latency compared to traditional methods [3] Company Overview - Arteris specializes in system IP for accelerating SoC development, focusing on enhancing performance, reducing power consumption, and speeding up time to market [6] - The company aims to simplify NoC design for chip designers, regardless of their prior experience, by automating critical aspects of NoC creation [4][6] - The AI Breakthrough Awards program received over 5,000 nominations in 2025, highlighting the competitive landscape and innovation within the AI sector [4]

Core Insights - Arteris, Inc. has launched Magillem Packaging, a software product aimed at simplifying and accelerating the chip design process for advanced applications such as AI data centers and edge devices [1][2] Company Overview - Arteris is a leader in system IP for semiconductors, focusing on enhancing the creation of high-performance and power-efficient silicon [6] - The company provides network-on-chip (NoC) interconnect IP and SoC integration automation software, utilized by top semiconductor and technology firms to improve performance and reduce costs [6] Product Features - Magillem Packaging automates the assembly and reuse of existing technology, addressing the complexities of modern chip design, which includes a growing number of silicon IP blocks and tighter timelines [2][3] - The software is based on the IEEE 1685 (IP-XACT) standard, ensuring compatibility with industry tools and silicon IP, which helps in reducing errors and delays during the design process [3][7] - It allows IP teams to package and prepare hundreds or thousands of components for integration into chiplets or SoCs, enhancing productivity and speeding up technology delivery [3] Industry Impact - The introduction of Magillem Packaging is expected to address integration challenges in semiconductor design, driven by the increasing complexity of chip designs and the rapid growth of chiplets [3] - Companies like Andes Technology and MIPS have recognized the value of Magillem Packaging in optimizing IP packaging and integration, which aligns with the industry's need for faster and more reliable SoC development [5]

Core Viewpoint - Arteris, Inc. is expanding its multi-die solution to meet the increasing computational demands of AI, transitioning from traditional monolithic die designs to chiplet-based architectures, which are essential for high-performance computing and automotive applications [2][8]. Industry Impact - The semiconductor industry is experiencing a shift towards multi-die systems as Moore's Law slows down, necessitating architectural innovation to enhance performance and efficiency, particularly for AI workloads [2][8]. - Arteris' technology reduces design time for chiplets and SoCs, optimizing power, performance, and area bottlenecks through key Network-on-Chip (NoC) IP technology [3][8]. Technological Capabilities - The expanded multi-die solution supports the Universal Chiplet Interconnect Express (UCIe) specification and various protocols, ensuring robust ecosystem compatibility [4][5]. - Key capabilities include non-coherent FlexNoC IP, cache-coherent Ncore NoC IP, and optimized automation for SoC assembly and integration, which collectively enhance the development process and reduce risks [6][7]. Strategic Collaborations - Arteris is collaborating with major players in the silicon value chain, including Arm, Cadence, Renesas, and Synopsys, to enable next-generation AI and automotive platforms [6][7]. - These partnerships aim to accelerate the journey to chiplet-based systems, optimize performance metrics, and ensure seamless interoperability across multi-die designs [7]. Market Relevance - The expanded multi-die solution is crucial for semiconductor firms to compress development cycles, scale modular architectures, and deliver differentiated AI performance, aligning with evolving industry demands [8].

Financial Data and Key Metrics Changes - The company has seen a shift in revenue concentration from China, dropping from 50% in 2019 to around 30% by early 2023, and currently closer to high teens percentage [66][70]. - The average selling prices (ASPs) are expected to reach around $1 million by 2026, driven by increasing design complexity and the adoption of more system IP [79]. Business Line Data and Key Metrics Changes - The FlexNOC product family is transitioning from FlexNOC 4 to FlexNOC 5, with a 30% list price increase for FlexNOC 5 over FlexNOC 4, and another 30% increase for FlexGen, which adds automation features [81][82]. - The company has approximately $90 million in remaining performance obligations, indicating a backlog of revenue to be recognized in the future [83]. Market Data and Key Metrics Changes - The company is experiencing growth in various geographical markets, particularly in the US, Japan, and Korea, which are offsetting declines in China [70][75]. - The automotive sector is highlighted as a significant area of growth, with Chinese EVs performing well in the market [75]. Company Strategy and Development Direction - The company is focusing on the shift from insourcing to outsourcing in the semiconductor design space, with expectations that commercial solutions will grow from 25% to potentially 75% over the next decade [22][24]. - The introduction of FlexGen aims to address industry challenges such as the lack of skilled engineers and high costs associated with chip design [29]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing trade tensions between the US and China but notes that there is no direct impact on the company's IP at the moment [62][64]. - The company sees AI and machine learning as integral to future growth, with half of customer design starts now related to these technologies [46]. Other Important Information - The company is exploring the incorporation of AI in system IP design, focusing on analytics and verification processes [48][50]. - Cybersecurity is a significant concern, with the company taking advanced measures to protect sensitive information [60]. Q&A Session Summary Question: How much of your top line is driven from China customers? - The company's revenue from China has decreased from 50% in 2019 to around 30% in early 2023, and is now in the high teens percentage range [66][70]. Question: What is the average deal size and pricing trends? - The average selling prices are expected to grow, with projections of reaching around $1 million by 2026 due to increasing complexity in designs [79].