Ceva Stock Soars 10.04% on Q2 Earnings, Edge AI Momentum

On August 11, 2025, Ceva's stock surged by 10.04% in pre-market trading, reflecting a significant boost in investor confidence.

Ceva's second-quarter performance exceeded analyst expectations despite a nearly 10% drop in revenue compared to the previous year. The company reported Q2 revenue of $25.7 million, which, although down 9.5% from last year, still surpassed Wall Street's forecasts. The net loss widened to $3.7 million, or -$0.15 per share, but a robust 87% adjusted gross margin indicated strong core operations. The momentum was driven by record shipments in cellular IoT and Wi-Fi 6 devices, which boosted royalty streams. Additionally, Ceva secured four new NeuPro neural processing agreements, supporting its edge AI ambitions, and made notable progress in automotive technology, including V2X and 4D radar.

With new opportunities in connected vehicles and edge AI, management expects both sequential and year-over-year revenue growth through the second half of 2025. This optimism is reflected in the market, where analysts' consensus price target for Ceva's stock is 31% higher than its closing price on August 8. Most analysts categorize the stock as a buy or strong buy, with none recommending a sale, indicating growing confidence in Ceva's potential for future growth driven by its exposure to edge AI and wireless technology.