CEVA Stock Slides 19% in a Month: Should You Buy the Dip or Wait?

CEVA Inc. shares fell 18.7% over the past month following profit-taking after reaching a 52-week high of $51.60 in June amid AI hype. Despite beating Q2 earnings estimates with 8 cents per share (vs. 7 cents consensus) and 13% revenue growth to $29M, investors were unimpressed. The stock trades at a premium valuation of 5.66X forward sales versus its sub-industry average of 4.04X. Analysts recommend patience, citing a Hold rating due to the disconnect between favorable growth prospects and expensive valuation.