CEVA Inc. (CEVA (CEVA)) stock is having a good Monday. The company announced a landmark AI licensing deal with a major U.S. software and AI platform company, and investors are rewarding it with a premarket pop.

CEVA said it signed an AI licensing agreement for a custom AI silicon program targeting next-generation intelligent computing devices. The customer, which CEVA didn't name, selected CEVA's NeuPro-M neural processing unit (NPU) IP to power on-device AI inference — think generative AI, multimodal AI, and agentic AI workloads running directly on devices rather than in the cloud.

This is a big deal for CEVA because it expands its customer base. Traditionally, CEVA licenses its signal-processing intellectual property to semiconductor companies and device makers. Now, software platform companies are getting into the custom chip game, and CEVA is along for the ride. The company also worked with the customer on neural network optimizations to improve inference efficiency and performance.

CEVA shares were up 8.39% at $43.81 during premarket trading on Monday, according to market data.

Technical Analysis: Key Levels and Momentum

CEVA has had a strong run over the past year, with shares up nearly 84% in the last 12 months. Currently, the stock is trading at $43.81, about 5.5% below its 20-day simple moving average (SMA) of $45.23 but 7.9% above its 50-day SMA of $39.60. The 100-day SMA stands at $29.97, indicating a robust upward trend over a longer timeframe.

The Relative Strength Index (RSI) sits at 45.32, suggesting neutral momentum — neither overbought nor oversold. That leaves room for further upside if buying pressure picks up. And the recent golden cross in May, where the 50-day SMA crossed above the 200-day SMA, adds a bullish tint to the technical picture.

• Key Resistance: $45.23 — this aligns with the 20-day SMA, which has historically acted as a barrier.
• Key Support: $40.00 — a level where buyers have stepped in before.

What CEVA Does

CEVA is a licensor of signal-processing intellectual property. Through partnerships with semiconductor companies and original equipment manufacturers globally, it helps produce devices for wireless, consumer, automotive, and Internet of Things markets. Basically, if a device needs to process signals efficiently, CEVA's IP might be inside it.

Earnings and Analyst Outlook

CEVA is slated to report its next financial update on August 10, 2026 (estimated). Analysts expect earnings per share of 3 cents, down from 7 cents a year ago, but revenue is expected to rise to $28.13 million from $25.68 million.

The stock carries a Buy rating with an average price forecast of $40.80. Recent analyst moves include:

• Needham: Initiated with Buy, forecast of $55.00 (June 15)
• UBS: Buy, raised forecast to $48.00 (May 12)
• Rosenblatt: Buy, raised forecast to $45.00 (May 12)

With the new AI deal, those forecasts might start looking conservative.