Shares of Arteris, Inc. (NASDAQ: AIP) surged 11.20% in after-hours trading on Tuesday following the company's release of its third-quarter financial results and announcement of a significant licensing deal.

The semiconductor IP company reported quarterly revenue of $17.408 million, surpassing analyst expectations of $17 million. This represents an 18.32% increase compared to the same period last year. While Arteris posted an adjusted loss of $0.09 per share, in line with analyst estimates, investors appeared to focus on the company's top-line growth and future prospects.

Adding to the positive sentiment, Arteris announced a new licensing agreement with Altera, a major player in the FPGA market. The deal allows Altera to use Arteris' network-on-chip IP and system-on-chip integration automation software for developing next-generation FPGA and SoC FPGA solutions. This partnership is expected to enhance Altera's design productivity and performance across various applications, including data centers, communications, and aerospace.

The combination of better-than-expected revenue and the promising licensing deal with Altera seems to have fueled investor optimism, driving the significant after-hours stock price increase. As Arteris continues to expand its presence in the semiconductor IP market, investors will likely keep a close eye on the company's ability to convert these positive developments into sustained growth and profitability.