Ambiq Micro stock soared Tuesday after the Texas-based chip maker reported strong quarterly sales growth, driven by demand for artificial-intelligence solutions.
The company posted an adjusted loss of 25 cents a share in the first quarter, an improvement on last year's per-share loss of 38 cents and analysts' consensus estimate for a loss of 36 cents. Net sales totaled $25.1 million, up 59% from a year ago and ahead of Wall Street's call for $21.5 million.
Ambiq stock jumped 45% to $66.37 on Tuesday. Shares have more than doubled since the company went public last July at an offering price of $24 a share.
The company makes ultra-low-power semiconductors for devices like smartwatches, industrial sensors, smart-home products, and portable game consoles. Makers of these products are increasingly looking for edge AI technology, which refers to AI computing hosted on local devices rather than in the cloud.
More than 80% of Ambiq units shipped in the first quarter run AI algorithms. The company expects further edge-AI demand in the second quarter, forecasting $31 million to $32 million in net sales. Analysts had anticipated $25.7 million.
Ambiq still has a way to go before it breaks even. The company projects it will need quarterly revenue of around $47 million to make a profit and it is "hopeful" it can get there by mid-2028 or perhaps the end of 2027, Chief Financial Officer Jeff Winzeler said on a conference call Tuesday.
The company's results came on an otherwise brutal day for chip stocks. The iShares Semiconductor exchange-traded fund was down 4.8% in afternoon trading.
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