Arteris, Inc. AIP shares ended the last trading session 9.9% higher at $26.72. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 38.8% gain over the past four weeks.
The optimism surrounding the stock can be attributed to strong demand for Arteris’ semiconductor design IP solutions, supported by rising AI-driven chip development across data centers, automotive, consumer electronics and edge devices. The company is benefiting from strong adoption of its FlexGen AI-driven Smart NoC product, which has been licensed for more than 30 production deployments, futher strengthens the company's growth outlook.
This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $21.1 million, up 27.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arteris, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AIP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arteris is a member of the Zacks Internet - Software industry. One other stock in the same industry, Astera Labs, Inc. ALAB, finished the last trading session 7.8% higher at $212.84. ALAB has returned 73.9% over the past month.
For Astera Labs, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.54. This represents a change of +63.6% from what the company reported a year ago. Astera Labs, Inc. currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
