CEVA: Growth Is Picking Up, But The Shares Are Still Relatively Expensive

CEVA, Inc. shows accelerating revenue growth, with Q2 revenues up 12.8% year-over-year and 2026 guidance of 13–15%. Licensing revenues rose 21%, signaling potential future royalty growth as device shipments increased 18%, though product mix may pressure margins. EPS declined due to a 17% increase in outstanding shares, raising dilution concerns despite rising non-GAAP net income. CEVA trades at a 56x forward P/E, significantly above peers, with growth and margin profile not justifying the premium valuation. CEVA, Inc., a leader in the field of wireless communication, could benefit greatly from the current market environment regarding technology. Unfortunately, this potential is already priced into the shares, which are also