Arteris Shares Jump 56.61% Pre-Market After AMD Licenses FlexGen IP for AI Chiplets

Arteris Inc. (NASDAQ: AIP) shares surged more than 56% in premarket trading on August 5, 2025, reaching $14.80 at 5:31 AM EDT. The dramatic rise follows a major announcement that Advanced Micro Devices Inc. (NASDAQ: AMD) has licensed Arteris’ FlexGen smart Network-on-Chip (NoC) interconnect IP technology for use in its next-generation AI chiplet designs [2]. This partnership has generated significant investor enthusiasm and raised expectations for Arteris’ future revenue potential.

FlexGen is designed to optimize data transport within complex semiconductor architectures, enabling more efficient and scalable performance in high-performance computing applications. AMD, a leader in high-performance computing, aims to leverage FlexGen to enhance its AI chiplet designs and strengthen its Infinity Fabric technology. The integration of Arteris’ NoC IP into AMD’s architecture is expected to streamline interconnect configurations and improve the performance of system-on-chip components [2].

The collaboration underscores the increasing complexity of modern semiconductor designs, particularly in the AI space, where multiple interconnect networks are essential for managing high-volume data processing. According to Arteris CEO K. Charles Janac, modern chiplets often require between 5 and 20 interconnect networks, highlighting the strategic value of FlexGen in enabling seamless data flow [2].

Arteris stock closed at $9.45 on August 4, 2025, before the premarket surge, reflecting a 4.42% increase. However, the stock’s 56.61% premarket jump indicates strong institutional demand and investor confidence in the partnership’s long-term benefits [2]. The company currently has a market capitalization of approximately $396.7 million, a price-to-sales ratio of 5.86, and reported trailing twelve-month revenue of $61.31 million. Despite a net loss of $32.36 million, Arteris holds $42.31 million in total cash and positive levered free cash flow of $9.69 million [2].

Analysts remain cautiously optimistic about AIP’s prospects, with price targets ranging from $9.00 to $16.00 and an average of $12.75. The current premarket price of $14.80 exceeds most expectations, suggesting potential upward revisions in analyst forecasts following the AMD partnership. Arteris is set to report its second-quarter 2025 earnings after the market close on August 4, 2025, with analysts predicting a loss of 10 cents per share and revenue of $16.35 million [2].

The stock’s strong premarket performance has also sparked interest in ETFs that include Arteris or similar AI-focused technology firms. Meanwhile, a recent insider transaction saw the company’s CFO sell $50,926 in AIP stock at prices ranging from $9.00 to $9.27 [5]. While the immediate outlook for Arteris appears positive, long-term success will depend on the continued adoption of FlexGen IP and the company’s ability to meet financial expectations.

Sources:

[1] Arteris stock soars after AMD licenses FlexGen IP for AI ... https://www.investing.com/news/stock-market-news/arteris-stock-soars-after-amd-licenses-flexgen-ip-for-ai-chiplet-design-93CH-4168973

[2] Arteris Stock Surges After AMD Licenses FlexGen For Next ... https://www.benzinga.com/trading-ideas/movers/25/08/46842880/arteris-stock-surges-after-amd-licenses-flexgen-for-next-generation-ai-chiplet-design

[3] Pre-Market Movers: Arteris Soars 50%, Palantir +5% ... https://news.moomoo.com/flash/20824923/pre-market-movers-arteris-soars-50-palantir-5-opendoor-4

[5] Hawkins, Arteris CFO, sells $51k in AIP stock https://www.investing.com/news/insider-trading-news/hawkins-arteris-cfo-sells-51k-in-aip-stock-93CH-4169044