Arteris Looks Like a Bubble-Proof Tech Stock Even at New All-Time Highs

• Arteris (AIP) demonstrates exceptional momentum, gaining 425% over the past 52 weeks.
• Shares are trading near new all-time highs, and the stock maintains a 100% “Buy” technical opinion from Barchart.
• Consensus among analysts is mixed, but Morningstar sees AIP as 43% overvalued.
• Revenue is projected to grow 33.25% this year and 20.27% next, with earnings estimated to surge nearly 75% this year.

Today’s Featured Stock

Valued at $2.19 billion, Arteris (AIP) is a provider of System IP consisting of network-on-chip (NoC) interconnect as well as IP Deployment software which accelerates the creation of system-on-a-chip (SoC)-type semiconductors.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, a Weighted Alpha above 50+, and a 60-month beta above 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AIP checks those boxes. The Trend Seeker issued a new “Buy” signal on June 11. Since then, the stock has gained 27.42%.

Barchart’s Technical Indicators for Arteris

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Arteris scored an all-time high of $50.26 on June 30.

• Arteris has a Weighted Alpha of +484.85.
• AIP has a 100% “Buy” opinion from Barchart.
• The stock has gained 426.68% over the past 52 weeks.
• Arteris has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $46.95 with a 50-day moving average of $35.48.
• AIP has made 8 new highs and gained 31.85% over the past month.
• 60-month beta of 1.98.
• Relative Strength Index (RSI) is at 65.27.
• There’s a technical support level around $46.97.

Don’t Forget the Fundamentals

• $2.19 billion market capitalization.
• Analysts project revenue to grow 33.25% this year and another 20.27% next year.
• Earnings are estimated to increase 73.48% this year and an additional 282.86% next year.

Analyst and Investor Sentiment on Arteris

• The Wall Street analysts followed by Barchart give the stock 3 “Strong Buy” and 2 “Hold” opinions with price targets between $35 and $40.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 43% overvalued with a fair value of $33.89.
• 2,400 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 5.03% of the float with 2.28 days to cover the float.

The Bottom Line on Arteris

Arteris serves diverse markets such as automotive, communications, enterprise computing, consumer electronics, and industrial sectors across geographies including the Americas, Asia Pacific, Europe, and the Middle East. Because its customer base is so wide, it may be able to survive if and when this tech bubble bursts.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.