Chip stocks fall with Nvidia after data center rev disappointment
CAMPBELL, Calif. - Arteris, Inc. (NASDAQ:AIP), a provider of system IP for semiconductor creation with an impressive 90.03% gross profit margin and market capitalization of $400.48 million, announced Tuesday its membership in the Ultra Accelerator Link Consortium (UALink). According to InvestingPro data, the company has shown strong momentum with a 7.71% return over the past week.
The consortium, formed in May 2024, aims to develop technical specifications for direct load, store, and atomic operations between AI accelerators. It was incorporated in October 2024 by major technology companies including AMD, AWS, Google, Intel, Meta, and Microsoft.
UALink is working to establish an open ecosystem and industry standard to enable advanced AI models across multiple accelerators. The consortium focuses on creating specifications for high-speed, scale-up accelerator interconnect technology to enhance AI cluster performance.
Arteris provides network-on-chip (NoC) technology that is already utilized by companies developing high-bandwidth, low-latency HPC and AI accelerators. The company’s participation in UALink aligns with increasing demand for specialized computing solutions as general-purpose systems struggle to handle growing AI workloads.
"Arteris is committed to leading the way in connectivity IP for complex SoC and chiplets used for AI and high-performance computing applications," said Michal Siwinski, CMO of Arteris, according to the press release.
Peter Onufryk, president of the UALink Consortium, stated that Arteris’ expertise in system IP optimized for AI high-performance computing will help advance the development of the UALink standard.
The announcement highlights the growing industry focus on creating standardized solutions for AI infrastructure as data centers evolve to support increasing AI workload demands. While current market analysis suggests the stock may be trading above its Fair Value, investors can access detailed insights and additional ProTips through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks including Arteris.
In other recent news, Arteris Inc. announced its second-quarter 2025 earnings, revealing a revenue of $16.5 million, which exceeded analysts’ expectations of $16.35 million. Despite the positive revenue figures, the company’s earnings per share (EPS) was slightly below projections, coming in at -$0.11 compared to the forecasted -$0.10. These results have drawn attention from investors, highlighting the company’s strategic developments. Analysts have taken note of the revenue beat, which signals a positive trajectory for the company. The earnings report reflects Arteris’s ongoing efforts to enhance its financial performance. While the EPS fell short of expectations, the revenue success has been a focal point for stakeholders. These recent developments indicate a mixed yet noteworthy performance for Arteris in the second quarter of 2025.
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