Analysing CEVA’s (CEVA) Growth in Neural Processing Markets

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for "Meridian Contrarian Fund". The letter can be downloaded here . U.S. equity markets experienced a strong recovery in Q2 2026, driven by improved sentiment following de-escalation of geopolitical tensions and retreating energy prices. S&P 500 companies reported first-quarter profit growth above expectations, bolstering investor confidence. Significant gains in semiconductor and memory chip stocks were fueled by an accelerated AI investment cycle. The Russell 2500 Index saw a 20.26% return, notably propelled by the Information Technology sector, which accounted for nearly 50% of the index's gains. The Meridian Contrarian Fund returned 17.75%, underperforming both the Russell 2500 Index and the Russell 2500 Value Index. Looking ahead, the investment strategy remains focused on finding value in overlooked companies. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Meridian Contrarian Fund highlighted CEVA, Inc. (NASDAQ: CEVA ). CEVA, Inc. (NASDAQ:CEVA) is a silicon and software intellectual property solutions provider to semiconductor and original equipment manufacturer companies. On September 3, 2026, CEVA, Inc. (NASDAQ:CEVA) closed at $26.44 per share. Over the past month, CEVA, Inc. (NASDAQ:CEVA) declined 31.63%, but its shares are up 16.32% over the past year. CEVA, Inc. (NASDAQ:CEVA) has a market capitalization of $739.04 million, and its stock has traded within a 52-week range of $17.02 to $51.60.

Meridian Contrarian Fund stated the following regarding CEVA, Inc. (NASDAQ:CEVA) in its Q2 2026 investor letter:

"CEVA, Inc. (NASDAQ:CEVA) is an intellectual property licensing company specializing in signal processing cores and software algorithms for the connectivity and neural processing end markets. The company's processor designs are broadly adopted across Wi-Fi, Bluetooth, and 5G platforms, with growing penetration in neural processing — positioning CEVA as a foundational supplier to the edge AI and robotics markets. A downturn in the global handset market, compounded by a failed acquisition, pressured earnings through 2023 and left the stock deeply out of favor. Our research identified CEVA as a compelling recovery candidate, with a pending Wi-Fi upgrade cycle, a significant new smartphone customer, and an underappreciated neural processing portfolio each representing meaningful drivers of future growth. CEVA delivered strong results during the quarter, with positive earnings and several notable design win announcements including further neural processing penetration and an expansion of the company's connectivity technology into satellite applications — a nascent but potentially significant new end market. We reduced our position into strength consistent with our standard risk management discipline, but retain a position and remain constructive on CEVA's growth prospects."