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Investing.com - Stifel has reduced its price target on Ambiq Micro Inc (NYSE:AMBQ) to $40.00 from $45.00 while maintaining a Buy rating on the stock. AMBQ currently trades at $29.21, down significantly from its 52-week high of $51.76, with InvestingPro data showing the stock has fallen over 24% in the past six months.
The company reported third-quarter 2025 revenue of $18.2 million, representing a 1.6% quarter-over-quarter increase and exceeding Stifel’s estimate of $17.8 million by 2.3%. Ambiq posted a net GAAP loss per share of ($0.22), which was $0.10 better than Stifel’s projected loss of ($0.32). This performance aligns with InvestingPro data showing the company remains unprofitable with a last twelve months EBITDA of -$30.77 million.
Ambiq has raised its fourth-quarter 2025 revenue guidance to a midpoint of $19.0 million, indicating a 4.6% sequential improvement and 35.7% higher than Stifel’s previous estimate.
Stifel cited "upbeat commentary" from management regarding the company’s three key strategic initiatives, noting that Ambiq is well-positioned to deploy its IPO proceeds toward investments in next-generation platforms while its current product portfolio continues to grow.
The price target reduction reflects lower comparable company valuations and recent volatility in semiconductor sector valuations, with the new target based on a 9.6x enterprise value to sales multiple for calendar year 2026 estimates.
In other recent news, Ambiq Micro Inc. announced its third-quarter 2025 earnings, highlighting a 10.4% year-over-year decline in net sales, bringing in $18.2 million. Despite the drop in sales, the company achieved a 16.8% increase in non-GAAP gross profit, with gross margins expanding to 44.8%. These financial results suggest a positive shift in the company’s operational efficiency and cost management strategies. The earnings report reflects ongoing strategic adjustments and product innovations, which appear to have garnered investor confidence. Ambiq Micro’s recent performance indicates a focus on improving profitability amid challenging market conditions. The company’s ability to expand its gross margin despite declining sales is noteworthy in the current economic climate. These developments are part of Ambiq Micro’s broader efforts to enhance its market position and financial stability.
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