CEVA (CEVA) Stock Forecast & Price Target

CEVA Inc. is positioned for significant growth, driven by the integration of its sense, connect, and infer intellectual properties into AI applications at the network edge, alongside a rebound in handset shipments and the inclusion of CEVA IP in new iPhone models. The company reported a notable recovery in royalty revenue, which totaled $10.7 million and contributed to 41% of total revenue, showcasing a 16% sequential increase attributed to higher shipments in the U.S. Furthermore, CEVA forecasts a double-digit percentage increase in Non-GAAP net income and fully diluted Non-GAAP EPS for FY2025, fueled by strong licensing momentum and expected royalty growth in 5G, Wi-Fi, and cellular IoT sectors.

CEVA Inc reported a non-GAAP EPS of $0.07 for 2QFY25, a decline from $0.15 in the same quarter the previous year, indicating challenges in profitability despite exceeding estimates. The company's total revenue for 2QFY25 was $25.7 million, reflecting a 9.6% year-over-year decrease, primarily driven by a significant drop in licensing and related revenue by 13% year-over-year. This decline in key revenue streams, particularly licensing, raises concerns regarding CEVA's growth trajectory and market demand for its intellectual property solutions.