Arteris' Q2 2025: Unraveling Contradictions in AMD Deal, Chiplet Growth, and Revenue Projections

AMD Deal and FlexGen Adoption, Chiplet Projects and Market Penetration, Market Size and Growth Areas, Revenue Growth and Free Cash Flow Expectations, and AMD's Use of Arteris Technology are the key contradictions discussed in Arteris' latest 2025Q2 earnings call.



Strong Financial Performance:
- Arteris, Inc. reported record annual contract value plus royalties of $69.1 million in Q2 2025, up 15% year-over-year.
- This growth was driven by increased adoption in enterprise computing and automotive applications, particularly in AI computing.

AMD Partnership and FlexGen Adoption:
- AMD, a top 10 semiconductor company, signed an agreement to use Arteris FlexGen, contributing to a major "whale deal".
- The adoption of FlexGen by AMD was driven by its ability to provide high-performance data transport in chiplets, benefiting AI applications across AMD's product portfolio.

Increased Remaining Performance Obligations (RPO):
- Arteris exited Q2 2025 with $99.3 million in RPO, representing a 28% year-over-year increase.
- This increase was due to growing demand for Arteris' system IP technology, particularly in AI-driven SoCs.

Expansion of Multi-Die Solutions:
- Arteris announced the expansion of its multi-die solution, delivering foundational technology for rapid chiplet-based innovation.
- This expansion was motivated by the shift from traditional monolithic chips to multi-die or chiplet architectures in the AI era.