Arteris, Inc. (AIP) shares are set to open sharply lower on Wednesday, plunging 14.54% in pre-market trading following the release of the company's second-quarter 2025 financial results. The semiconductor IP provider disappointed investors with an earnings miss and guidance that fell short of expectations, overshadowing a slight revenue beat.

For the second quarter, Arteris reported an adjusted loss per share of $0.11, missing analysts' expectations of $0.10. While the company's revenue grew 13% year-over-year to $16.5 million, slightly beating the consensus estimate of $16.35 million, the earnings miss appears to have overshadowed the top-line growth. Adding to investor concerns, Arteris provided revenue guidance for the third quarter in the range of $16.8 million to $17.2 million, which fell short of the consensus estimate of $17.25 million.

The stark contrast between Tuesday's performance, where Arteris shares surged 37.6% on news of a partnership with AMD, and Wednesday's pre-market plunge highlights the market's complex reaction to mixed news from the company. While the AMD partnership initially excited investors, the focus has now shifted to the company's current financial performance and near-term outlook, leading to a significant sell-off in pre-market trading.