Arteris Stock Surges After AMD Licenses FlexGen IP for Next-Generation AI Chiplet Design

Arteris Inc. AIP shares surged 41.59% in after-hours trading after the company announced a deal with Advanced Micro Devices Inc. AMD for its next-generation AI chiplet design. The FlexGen network-on-chip interconnect IP will provide high-performance data transport in AMD chiplets for AI applications across data centers, edge, and end devices. Arteris expects to report a Q2 loss of 10 cents and revenue of $16.35 million.

Arteris Inc. (AIP) shares surged by 41.59% in after-hours trading following the announcement of a strategic partnership with Advanced Micro Devices Inc. (AMD). The deal involves Arteris licensing its FlexGen network-on-chip (NoC) interconnect IP for AMD's next-generation AI chiplet designs. This collaboration is set to enhance data transport capabilities across AMD's portfolio, spanning data centers to edge and end devices.

The FlexGen NoC IP technology is designed to optimize wire length, reduce latency, and improve power efficiency in complex multi-die and chiplet-based designs. This technology can handle between 5 to 20 interconnect networks per chiplet, making it crucial for the massive data flows in AI workloads.

The integration of Arteris' FlexGen NoC IP with AMD's proprietary Infinity Fabric™ interconnect technology underscores the growing complexity of modern SoCs and chiplet-based architectures. This strategic collaboration aims to address critical performance bottlenecks, thereby accelerating the development and performance of AMD's AI chiplets.

The partnership highlights Arteris' position as a leading provider of semiconductor system IP and AMD's commitment to innovation in high-performance computing. Arteris' CEO, K. Charles Janac, expressed excitement about the collaboration, stating that the FlexGen NoC IP will work hand in hand with AMD's Infinity Fabric to meet the demands of today's most demanding applications.

AMD's corporate vice president of silicon design engineering, Mydung Pham, noted that integrating Arteris' FlexGen NoC IP technology will enable seamless connectivity among SoC components, further strengthening AMD's AI compute portfolio.

Arteris expects to report a Q2 loss of 10 cents and revenue of $16.35 million. The company's shares closed at $176.78 on Monday, reflecting investor optimism about the partnership.

This collaboration is a significant step in the semiconductor industry's AI acceleration efforts, reflecting the broader trend toward disaggregated chip designs using specialized chiplets. The strategic value of this partnership lies in enhancing data transport efficiency and addressing critical performance bottlenecks in AI chiplet designs.

References:
[1] https://www.arteris.com/press-releases/arteris-to-provide-flexgen-smart-noc-ip-in-next-generation-amd-ai-chiplet-designs/
[2] https://www.stocktitan.net/news/AIP/arteris-to-provide-flex-gen-smart-no-c-ip-in-next-generation-amd-ai-blwksuwakkwr.html
[3] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/46858448/amd-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call