AI Traction Building On Top Of Durable Auto Royalty Base

研报英文原文证据摘录

AI Traction Building On Top Of Durable Auto Royalty Base

Semiconductors

Arteris IP

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 12, 2026

Price: $32.43 (05/12/2026) AI Traction Building On Top Of Durable Auto

Price Target: $40.00 (Prior $22.00) Royalty Base

BUY (1)

ESG SCORE: 68/100

Joshua Buchalter, CFA THE TD COWEN INSIGHT

646 562 1303

Arteris delivered a beat in 1Q and raised both 2Q and FY26, with all metrics exceeding

joshua.buchalter@tdsecurities.com

expectations. Datacenter/AI is now the largest licensing vertical, offering faster royalty

Ethan Potasnick realization and higher ASPs, while automotive continues to anchor durable, long-cycle

646 562 1425 royalties. Cycuity expands the TAM into security, with early evidence of cross-selling

ethan.potasnick@tdsecurities.com

momentum. Reiterate Buy; PT to $40.

Lannie Trieu, CFA

415 646 7217 What Happened? Arteris reported a strong 1Q26, with results above the high end of guidance

lannie.trieu@tdsecurities.com and an increased FY26 outlook across all metrics. Revenue increased 39% Y/Y, ACV plus

Sean O'Loughlin, CFA royalties reached a record $92.8M (+39% Y/Y), and RPO grew to $118M (+33% Y/Y), extending

646 562 1327 visibility into 2H26/2027. Deal activity strengthened Q/Q, with April representing the strongest

sean.oloughlin@tdsecurities.com month for licensing on record, reinforcing confidence around 2H26 execution. Management

reiterated confidence in achieving non-GAAP operating profitability as early as 4Q26,

Sam Reiff, CFA

supported by larger average deal sizes, improving mix, and continued operating discipline.312 577 2217

sam.reiff@tdsecurities.com In our view, results and guidance reflected improving semis end market conditions and

Key Data broader customer diversification across Arteris' target verticals.