Arteris Stock Surges After AMD Licenses FlexGen For Next-Generation AI Chiplet Design

Arteris, Inc. shares are soaring 50% in premarket trading on Tuesday after the company announced a deal with Advanced Micro Devices for its next generation of AI chiplet design.

What To Know: After the market close on Monday, Arteris said AMD licensed its FlexGen network-on-chip (NoC) interconnect IP for its next-generation chips. FlexGen will provide high-performance data transport in AMD chiplets powering AI across data centers and edge and end devices.

“We are excited to collaborate and expand our relationship with AMD, a company recognized globally for its innovation in high-performance computing,” said K. Charles Janac, president and CEO of Arteris.

“With modern chiplets each having between five and 20 interconnect networks for data transport, our FlexGen NoC IP will work hand in hand with AMD’s Infinity Fabric to accelerate the performance and scalability required by today’s most demanding and diverse applications.”

Arteris said the collaboration underscores the increasing complexity of modern system-on-chip architectures, which require multiple highly specialized interconnects to efficiently meet the demands of modern systems.

Arteris is due to report financial results for the second quarter after the market close on Tuesday. Analysts expect the company to report a loss of 10 cents and revenue of $16.35 million, according to analysts’ estimates.