Arteris, Inc. (AIP) shares surged 12.70% in pre-market trading on Wednesday, following the release of the company's first-quarter 2026 financial results that significantly exceeded analyst expectations.

The semiconductor IP provider reported Q1 revenue of $22.9 million, a 39% year-over-year increase that beat the consensus estimate of $21.03 million. The company's adjusted loss per share narrowed to $0.03, surpassing the estimated loss of $0.07. Management attributed the strong performance to growing customer engagement in AI-enabled chips and chiplet architectures across data centers, edge devices, and physical AI systems.

Arteris also provided positive forward guidance, raising its full-year 2026 revenue outlook to a range of $91 million to $95 million, up from the previous guidance of $89 million to $93 million. The company expects Q2 revenue between $23 million and $24 million. The combination of a robust earnings beat and an optimistic outlook fueled investor optimism, driving the stock significantly higher in pre-market trading.