CEVA (CEVA) Stock Forecast & Price Target

CEVA Inc. is experiencing strong growth due to the integration of its sense, connect, and infer intellectual property into AI applications for network edge devices, alongside a rebound in handset unit shipments, particularly from new iPhone models featuring CEVA IP. In the most recent financial report, royalty revenue reached $10.7 million, reflecting a sequential increase of 16% quarter-over-quarter, which highlights positive momentum driven by higher shipments in the U.S. Furthermore, management anticipates a double-digit percentage increase in Non-GAAP net income and fully diluted Non-GAAP EPS for FY2025, supported by robust licensing activity and expectations for royalty acceleration in the second half of the year.

CEVA Inc experienced a notable decline in its non-GAAP EPS, which fell to $0.07 from $0.15 year-over-year, indicating a concerning drop in profit margins despite surpassing consensus expectations. Additionally, the company's revenue for 2QFY25 was reported at $25.7 million, reflecting a year-over-year decrease of 9.6%, suggesting challenges in maintaining sales in a competitive market. The performance in comparison to the prior year, along with a marginal increase of 6% quarter-over-quarter, raises concerns about the sustainability of its revenue growth and profitability moving forward.