Arteris

Arteris posts very high gross margins (about 85% in Q2 2026), reflecting strong perceived value. Pricing power is supported by customer lock‑in and the small bill‑of‑materials share relative to the economic value of a working SoC, especially in safety‑critical and AI designs.

That said, large customers possess negotiation leverage and Arm’s interconnect options cap unilateral price hikes. We expect selective price increases tied to new features, safety and security assurance, and chiplet workflows rather than broad rate hikes.