Arteris shares jump 16.72% premarket as Rosenblatt raises price target to $20 on strong Q3 results and AI growth.

Arteris Inc. (NASDAQ:AIP) surged 16.72% in premarket trading following Rosenblatt Securities’ upgrade of its price target to $20 from $14, maintaining a "Buy" rating. The firm cited Arteris’ third-quarter 2025 results, which showed a 18% revenue increase to $17.4 million, driven by expanded licensing deals with Altera and AMD, as well as growing AI adoption in its products. Rosenblatt highlighted strong gross margins (90.03%) and tailwinds from chiplet demand and smaller semiconductor process geometries. Despite the company reporting a GAAP operating loss of $8.7 million, the analyst’s optimism and the stock’s long-term growth potential, particularly in AI-driven applications, likely fueled the sharp premarket rally. A VP’s share sale and historical losses were deemed less impactful given the immediate catalyst of the upgraded rating and robust revenue performance.