AI Traction Builds with Improving Royalties and Expanding A&D Exposure

研报英文原文证据摘录

AI Traction Builds with Improving Royalties and Expanding A&D Exposure

USA | Semiconductors

Arteris EquityMayResearch12, 2026

TARGET | ESTIMATE CHANGEAI Traction Builds with Improving Royalties and

RATING HOLDExpanding A&D Exposure

PRICE $32.43^

AIP delivered a beat-and-raise with demand increasingly driven by AI-related

activity. Royalty trends improved meaningfully, supported by greater exposure PRICE TARGET | % TO PT $35.00 ($16.00) | +8%

to DC and specifically CPU designs, with >100% Y/Y growth in the quarter. 52W HIGH-LOW $33.46 - $6.88

Longer term, emerging opportunities across A&D and space expand the TAM. FLOAT (%) | ADV MM (USD) 77.2% | 22.46

We are increasingly constructive on the AIP story, but maintain our Hold rating MARKET CAP $1.5B

as we await better clarity on profitability following the step-up in opex. TICKER AIP ^Prior trading day's closing price unless otherwise

noted.

AIP reported solid results with improving trends supported by AI-driven activity (~2/3 of customer

engagements are now tied to AI). Royalty performance improved with Q1 royalties growing

FY (Dec) CHANGE TO JEFe JEF vs CONS

>100% Y/Y, reflecting stronger downstream activity and a broader base of royalty contributors.

Part of this strength is tied to increasing exposure to higher-value compute designs, including 2026 2027 2026 2027

data center chips and specifically CPUs which are seeing a demand inflection. Beyond core REV +4% +5% +2% +5%

markets, the company is seeing incremental traction in A&D, now approaching ~10% of ACV, EPS +41% +71% -23% +194%

supported by both new applications and the addition of security-related capabilities. This includes

continued engagement in space and satellite programs, highlighting the use of AIP technology in 2026 ($) Q1A Q2 Q3 Q4 FY