5 Small Publicly Traded Semiconductor Companies

4. Arteris, Inc. (NASDAQ:AIP)

Market capitalization as of March 3: $175.34 million
Number of hedge fund holders: 7

Arteris, Inc. (NASDAQ:AIP) is a semiconductor intellectual property (IP) company that designs, and licenses system-on-chip (SoC) interconnects for use in a wide range of electronic devices. Shares in AIP are mostly bearish both in the short- and long term. The market underperformance notwithstanding, the company has strong financials; in the full year 2022, Arteris, Inc. (NASDAQ:AIP)’s revenue grew 33.05% y-o-y. However, the operating expenses expanded more, leading to a negative growth of net profit, -17.12%. The underperformance of the share price has affected the price-to-earnings ratio, which came in at -5.12x in the full year 2022. Despite the unsatisfactory financials, the company’s management is satisfied that they finished 2022 strongly.

In other words, Arteris, Inc. (NASDAQ:AIP)’s financials will recover once it overcomes the loss of key business. It is already covering the loss with the recent acquisition of Semifore, expanding its IP deployment automation solutions, and accelerating SoC development by integrating Semifore’s hardware/software interface (HSI) technology. TD Cowen, on March 2, downgraded his price target on Arteris, Inc. (NASDAQ:AIP) from $12 to $10 while maintaining an ‘Outperform’ rating on the shares. The analyst attributed the downgrade to a mixed 4Q report, with ongoing macroeconomic challenges and weakness in China offsetting the strength in the automotive sector.

At the end of the fourth quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $5.31 million in Arteris, Inc. (NASDAQ:AIP), up from 5 in the preceding quarter worth $7.50 million.