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Investing.com - Needham has initiated coverage on Ambiq Micro Inc (NYSE:AMBQ) with a Buy rating and a $48.00 price target, citing the company’s differentiated technology for AI applications at the edge. According to InvestingPro data, the stock currently trades at $38.47, with a market capitalization of approximately $670 million.
The research firm highlighted Ambiq’s Sub-threshold Power Optimized Technology (SPOT), which reduces power consumption by 2-5x compared to traditional circuitry, positioning the company advantageously as AI becomes more prevalent in edge IoT devices.
Needham expects Ambiq to experience a revenue inflection point in 2028, driven by the ramp-up of Atomiq, the company’s first system-on-chip with a dedicated neural processing unit.
Ambiq Micro operates as a fabless semiconductor company focused on developing ultra-low power solutions specifically targeting AI inferencing at the edge computing market.
The research firm also noted potential longer-term growth opportunities through SPOT licensing, which could further drive revenue growth and margin expansion for the company. With its next earnings report due on September 4, investors can access additional insights and 6 more exclusive ProTips through InvestingPro, including detailed analysis of the company’s financial health and growth metrics.
In other recent news, Ambiq Micro has made significant strides with its initial public offering, raising $110.4 million before expenses by selling 4.6 million shares at $24 each. This offering included the full exercise of underwriters’ option to purchase an additional 600,000 shares. Ambiq’s shares have begun trading on the New York Stock Exchange. Additionally, Ambiq Micro’s stock received varying ratings from investment firms. UBS initiated coverage with a Neutral rating, setting a price target of $40.00, citing valuation concerns. Conversely, Stifel initiated coverage with a Buy rating and a $45.00 price target, emphasizing the company’s proprietary SPOT platform as a competitive advantage. These developments highlight Ambiq Micro’s growing presence in the market and the differing perspectives from analysts regarding its valuation and potential.
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