Arteris Closes Acquisition of Cycuity

Rhea-AI Summary

Arteris (Nasdaq: AIP) announced it has closed its acquisition of Cycuity, a semiconductor cybersecurity assurance technology provider, on Jan. 14, 2026. The deal combines Arteris system IP with Cycuity's hardware security assurance capabilities to address rising hardware threats and secure on-chip data movement from AI data centers to edge devices. The release cites a >15x increase in reported hardware CVEs over five years per NIST, underscoring demand for solutions that protect SoC functionality, performance, and schedules. The acquisition expands Arteris's product portfolio and positions the company to offer integrated security-focused IP and tools for semiconductor customers.

Positive

• Acquisition closed on Jan. 14, 2026
• Combines Arteris system IP with Cycuity hardware security assurance technology
• Expands product portfolio to secure on-chip data movement from AI data centers to edge devices

Negative

• Reported hardware CVEs rose by over 15x in five years, indicating increased security risk
• Threat landscape expansion could require additional R&D to maintain secure SoC performance

News Market Reaction

-2.06%

8 alerts

-2.06% News Effect

+2.1% Peak in 1 hr 58 min

-$17M Valuation Impact

$795M Market Cap

0.7x Rel. Volume

On the day this news was published, AIP declined 2.06%, reflecting a moderate negative market reaction. Argus tracked a peak move of +2.1% during that session. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $17M from the company's valuation, bringing the market cap to $795M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 2025 revenue: $17.4M ACV plus royalties: $74.9M Remaining performance obligations: $104.7M +5 more

8 metrics

Q3 2025 revenue $17.4M Q3 2025, up from $14.7M a year ago

ACV plus royalties $74.9M Q3 2025, +24% year-over-year

Remaining performance obligations $104.7M Q3 2025, +34% year-over-year

GAAP net loss $9.0M Q3 2025 net loss, or $0.21 per share

Shelf registration capacity $200,000,000 Total potential offerings under S-3 shelf filed Dec 11, 2025

ATM program size $75,000,000 Common stock that may be sold via Jefferies ATM

Insider sale 40,000 shares at $16.4618 Bayview Legacy, LLC sale on Dec 4, 2025 under Rule 10b5-1 plan

Short interest 3.76% Short interest as a percent of float; days to cover 3.35

Market Reality Check

Price: $17.57 Vol: Volume 378,502 is slightl...

normal vol

$17.57 Last Close

Volume Volume 378,502 is slightly below 20-day average 422,953 (relative volume 0.89). normal

Technical Price $17.46 is above 200-day MA $10.72 and 12.04% below 52-week high $19.85.

Peers on Argus

AIP is up 0.52% while key peers like LAES, POET, NVEC, and SKYT show declines (d...

AIP is up 0.52% while key peers like LAES, POET, NVEC, and SKYT show declines (down to -5.0%), and CEVA is nearly flat at 0.13%, indicating a stock-specific reaction.

Common Catalyst Both AIP and peer LAES reported acquisition-related news, suggesting some M&A activity focus in the group rather than a broad semiconductor move.

Historical Context

5 past events · Latest: Dec 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 11	Acquisition agreement	Positive	+0.3%	Announced definitive agreement to acquire Cycuity to add cybersecurity IP.
Dec 2	Customer design win	Positive	+2.5%	Black Sesame licensed Ncore 3 and FlexNoC 5 for intelligent driving SoCs.
Nov 11	AI platform win	Positive	+3.8%	Blaize adopted FlexNoC 5 to enhance scalable, efficient edge AI solutions.
Nov 4	Earnings & guidance	Neutral	-5.9%	Q3 2025 revenue growth with higher losses and updated FY25 guidance.
Nov 4	Customer partnership	Positive	-5.9%	Altera licensed Arteris IP and tools for next-gen FPGA and SoC FPGA designs.

Pattern Detected

Recent AIP news has generally seen aligned reactions, with customer and AI design-win announcements drawing stronger positive moves than the prior Cycuity acquisition agreement.

Recent Company History

Over the last few months, Arteris has reported multiple positive commercial milestones. On Nov 4, 2025, Q3 results showed revenue of $17.4M with growing ACV and RPO but a wider GAAP loss, and the stock fell 5.88%. Subsequent design-win announcements with Altera, Blaize, and Black Sesame generated gains up to 3.82%. The initial Cycuity acquisition agreement on Dec 11, 2025 saw a modest 0.31% rise, so today’s closing of that deal fits into an ongoing strategy of expanding the IP and security portfolio for AI and automotive SoCs.

Regulatory & Risk Context

Active S-3 Shelf · $200,000,000

Shelf Active

Active S-3 Shelf Registration 2025-12-11

$200,000,000 registered capacity

Arteris has an effective shelf registration on Form S-3 filed Dec 11, 2025, allowing offerings of up to $200,000,000 in various securities. Within this, it may sell up to $75,000,000 of common stock via an at-the-market program through Jefferies, which would receive up to 3.0% of gross proceeds as sales agent.

Market Pulse Summary

This announcement confirms Arteris’ acquisition of Cycuity, adding hardware security assurance techn...

Analysis

This announcement confirms Arteris’ acquisition of Cycuity, adding hardware security assurance technology to strengthen secure on-chip data movement from AI data centers to edge devices. Earlier disclosure on Dec 11, 2025 outlined this deal, and it now closes alongside an active S-3 shelf for up to $200,000,000 and an ATM of $75,000,000. Recent design wins and growing ACV and RPO highlight commercial traction, while ongoing GAAP losses and insider selling remain key risk factors to monitor.

Key Terms

semiconductor cybersecurity assurance, common vulnerabilities and exposures (cves), national institute of standards and technology (nist), system-on-chip, +1 more

5 terms

semiconductor cybersecurity assurance technical

"a leading provider and domain expert of semiconductor cybersecurity assurance technology."

Measures and processes that ensure computer chips and the systems that use them are protected from hacking, tampering, and hidden flaws throughout design, manufacturing and deployment. For investors, it signals lower risk of costly recalls, security breaches, regulatory fines and customer loss—similar to installing strong locks and alarms on a property to prevent theft and protect its value over time.

common vulnerabilities and exposures (cves) technical

"Reported new Common Vulnerabilities and Exposures (CVEs) in hardware grew by over 15 times"

Common Vulnerabilities and Exposures (CVEs) are unique, public identifiers for specific security flaws in software or hardware, each entry summarizing what the weakness is and how it might be exploited. Investors pay attention because CVEs reveal the cyber risk profile of a company—widespread or serious vulnerabilities can trigger expensive fixes, outages, regulatory penalties, or reputational harm, similar to discovering safety recalls on a product before buying it.

national institute of standards and technology (nist) technical

"according to the US Department of Commerce’s National Institute of Standards and Technology (NIST)."

A U.S. federal agency that creates and maintains measurement, testing and cybersecurity standards used across industry, from how devices are measured to how data systems are secured. Investors care because NIST guidance acts like a common ruler or referee: following its standards can reduce regulatory risk, lower product certification costs, increase customer trust, and influence which technologies and companies gain market acceptance.

system-on-chip technical

"without risking SoC functionality, performance, and schedules."

A system-on-chip (SoC) is a single silicon chip that combines the main computing processor, memory, and key interfaces (like graphics, wireless radios or input/output controllers) that a device needs to run. Think of it as a compact, all-in-one engine that replaces many separate parts, saving space, power and cost. For investors, SoC design and production influence product performance, margins and supply risk, and can be a major competitive advantage in electronics markets.

soc technical

"without risking SoC functionality, performance, and schedules."

Standard of care (often abbreviated SOC) is the treatment or management approach that is widely accepted and used by medical professionals for a particular disease or condition. For investors, SOC provides the benchmark against which new therapies, devices, or clinical results are judged—like comparing a new car to the current most popular model; a product that meaningfully outperforms the SOC can win market share and drive revenue, while failure to beat or match it limits commercial potential.

AI-generated analysis. Not financial advice.

Arteris adds to product portfolio to address secure data movement from AI data centers to edge devices with leading semiconductor cybersecurity assurance technology.

CAMPBELL, Calif., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading technology provider for accelerating semiconductor creation in the AI era, today announced it has closed its previously announced acquisition of Cycuity, Inc., a leading provider and domain expert of semiconductor cybersecurity assurance technology.

Semiconductor cybersecurity assurance is becoming critical to all types of chip designs, as the threat landscape has expanded to the hardware layer. Silicon vulnerabilities can result in compromised systems exposing unprotected information, a trend accelerated by the proliferation of AI and chiplets. Reported new Common Vulnerabilities and Exposures (CVEs) in hardware grew by over 15 times in the last five years, according to the US Department of Commerce’s National Institute of Standards and Technology (NIST). As such, there is a growing need for technology solutions that help to increase semiconductor security without risking SoC functionality, performance, and schedules.

By combining innovative system IP from Arteris with leading silicon hardware security assurance technology from Cycuity, the acquisition positions Arteris to address the growing concern around hardware security. The volume of sophisticated cyberattacks is increasing, targeting the vast amounts of unsecured data moving through semiconductors, from AI data centers to a wide range of edge devices. With this acquisition, Arteris broadens its commitment to deliver comprehensive products and solutions which help customers achieve secure on-chip data movement.

About Arteris

Arteris is a leading provider of semiconductor technology that accelerates the creation of high-performance, power-efficient silicon with built-in safety, reliability, and security. Innovative Arteris products are designed to optimize data movement and help ease complexity in the modern AI era with network-on-chip (NoC) interconnect intellectual property (IP), system-on-chip (SoC) software for integration automation and hardware security assurance. All are used by the world's top technology companies to improve overall performance and engineering productivity, reduce risk, lower costs, and bring cutting-edge designs to market faster. Learn more at arteris.com.

Forward-Looking Statements  

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including but not limited to statements regarding the acquisition positioning Arteris to address growing concerns around hardware security. Words such as "may," "will," "could," "expect," "approximately," "believe," "estimate," "future," "guidance," "outlook," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements allow potential investors an opportunity to understand Company management’s beliefs and opinions regarding potential future outcomes, which may be used as a factor by potential investors in evaluating an investment. Although forward-looking statements are based upon what Company management believes may be reasonable future outcomes, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in a forward-looking statement. Therefore, such statements are not guarantees. Arteris assumes no obligation to update any forward-looking statement in this release, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from the Company’s current expectations. Important factors that could cause actual results to differ materially from those anticipated in the Company’s forward-looking statements include, but are not limited to, the factors described under the heading “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 filed with the Securities and Exchange Commission on November 4, 2025.

© 2004-2026 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

Investor Contacts:
Arteris Inc.
Nick Hawkins
IR@arteris.com

Sapphire Investor Relations, LLC
Erica Mannion and Michael Funari
+1 617 542 6180
IR@arteris.com

Media Contact:
Arteris Inc.
Gina Jacobs
+1 408 560 3044
newsroom@arteris.com

This press release was published by a CLEAR® Verified individual.

FAQ

What did Arteris (AIP) announce on January 14, 2026?

Arteris announced it has closed its acquisition of Cycuity, adding semiconductor hardware security assurance technology to its portfolio.

How does the Cycuity acquisition affect Arteris's product offerings (AIP)?

The acquisition combines Arteris system IP with Cycuity's security assurance tech to broaden solutions for secure on-chip data movement.

Why is hardware security important for Arteris (AIP) customers?

Hardware vulnerabilities can expose data and disrupt SoC function; reported hardware CVEs grew by over 15x in five years, increasing demand for assurance tools.

Will the acquisition change how Arteris addresses AI data center to edge-device security?

Yes. Arteris says the combined tech positions the company to address secure data movement across AI data centers and a wide range of edge devices.

Does the announcement include financial terms for Arteris's acquisition of Cycuity (AIP)?

The announcement does not disclose financial terms or purchase price.

What immediate risks does Arteris highlight related to semiconductor security (AIP)?

The company cites an expanding threat landscape and rising sophisticated cyberattacks targeting data moving through semiconductors.