Ambiq Micro, Inc. (AMBQ) AI Stock Analysis

• Market Cap: $556.17M
• Dividend Yield: N/A
• Average Volume (3M): 212.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 190
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.22
• Shares Outstanding: 18,313,187
• 10 Day Avg. Volume: 117,866
• 30 Day Avg. Volume: 212,105
• PEG Ratio: 0.35
• Price to Book (P/B): 6.09
• Price to Sales (P/S): 6.86
• P/FCF Ratio: -20.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.00
• Price Target Upside: 22.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $29.00 ▼(-6.21% Downside)

Ambiq Micro, Inc. faces significant profitability and cash flow challenges, impacting its financial performance and valuation. While technical indicators show some bullish momentum, the overbought condition suggests caution. Positive corporate events support leadership retention, which is crucial for future strategic execution.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for Ambiq's products, suggesting potential for sustained growth in the semiconductor market.

Product Innovation

The launch of new products like the Apollo510 Lite enhances Ambiq's competitive edge in energy-efficient AI solutions, supporting long-term market positioning.

Leadership Stability

Retaining key executives through incentives ensures strategic continuity, which is crucial for executing long-term business plans and maintaining competitive advantage.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and limit reinvestment capabilities.

Cash Flow Issues

Negative operating cash flow indicates cash management challenges, potentially affecting the company's ability to fund operations and growth initiatives.

Margin Sustainability

Below-average gross margins suggest pricing pressure or cost inefficiencies, which could impact long-term profitability and competitive positioning.

Ambiq Micro, Inc. Business Overview & Revenue Model

Company Description

Ambiq Micro, Inc. (AMBQ) is a semiconductor company specializing in ultra-low-power microcontrollers and wireless connectivity solutions. The company focuses on providing innovative energy-efficient products for various sectors including consumer electronics, wearable technology, Internet of Things (IoT) devices, and industrial applications. Ambiq's core offerings include its family of ARM Cortex-M based microcontrollers and its Sub-GHz wireless communication technologies, designed to enhance battery life and overall performance in small form factor devices.

How the Company Makes Money

Ambiq Micro generates revenue primarily through the sales of its semiconductor products, including microcontrollers and wireless chips, to manufacturers in various industries. The company benefits from a diverse revenue model that includes direct sales to original equipment manufacturers (OEMs) and partnerships with distributors. Key revenue streams come from licensing agreements, royalties from intellectual property, and customized solutions for specific applications that cater to clients' unique needs. Significant partnerships with major technology firms and integration into popular consumer devices further enhance Ambiq's market reach and contribute to its earnings.

Ambiq Micro, Inc. Financial Statement Overview

Summary

Ambiq Micro, Inc. shows revenue growth but struggles with profitability and cash flow. Despite a strong equity position, negative margins and cash flow issues indicate operational inefficiencies.

Income Statement

Ambiq Micro, Inc. has shown some improvement in revenue growth with a 16% increase in the latest year. However, the company continues to face challenges with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has slightly improved but remains below industry averages. The consistent negative EBIT and EBITDA margins indicate ongoing operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating minimal leverage risk. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is healthy, suggesting a solid asset base relative to equity. Despite these strengths, the negative ROE highlights profitability challenges.

Cash Flow

Ambiq Micro, Inc. has shown some improvement in free cash flow growth, but operating cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting that cash flow generation relative to net income is somewhat stable. However, the negative operating cash flow to net income ratio highlights ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.77M	76.07M	65.54M	91.01M	50.97M
Gross Profit	23.24M	24.29M	19.44M	30.77M	21.57M
EBITDA	-20.97M	-34.37M	-43.61M	-21.85M	-18.29M
Net Income	-25.78M	-39.66M	-50.33M	-25.34M	-25.22M
Balance Sheet
Total Assets	186.73M	104.28M	72.43M	105.13M	99.68M
Cash, Cash Equivalents and Short-Term Investments	146.49M	60.98M	27.32M	25.92M	65.05M
Total Debt	771.00K	966.00K	1.02M	0.00	0.00
Total Liabilities	16.94M	18.53M	13.30M	16.12M	7.38M
Stockholders Equity	169.79M	85.75M	59.13M	89.01M	92.30M
Cash Flow
Free Cash Flow	-19.43M	-25.16M	-29.98M	-57.50M	-39.23M
Operating Cash Flow	-15.58M	-21.43M	-26.96M	-52.88M	-34.64M
Investing Cash Flow	-4.85M	-3.73M	-3.02M	-4.62M	-4.59M
Financing Cash Flow	105.90M	58.84M	31.77M	18.20M	94.06M

Ambiq Micro, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWKS	70 Outperform	$9.62B	21.03	7.89%	4.32%	-2.18%	-16.84%
NXPI	70 Neutral	$56.95B	27.79	21.19%	1.77%	-6.81%	-23.16%
MTSI	64 Neutral	$13.07B	-216.15	-4.42%	―	32.58%	-173.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SLAB	56 Neutral	$4.44B	-51.39	-8.00%	―	47.10%	64.29%
MCHP	54 Neutral	$35.08B	-146.68	-2.85%	2.75%	-23.36%	-131.15%
AMBQ	51 Neutral	$556.17M	-15.67	―	―	―	―

Ambiq Micro, Inc. Corporate Events

Ambiq Micro Approves Executive Cash Bonuses and Stock Awards

On September 29, 2025, Ambiq Micro, Inc. announced the approval of one-time cash bonuses for its key executives, including the CEO, CTO, CFO, and President/COO, to recognize their contributions during the company’s initial public offering and to ensure their retention. Additionally, the company accelerated stock options for the CFO and awarded time-based restricted stock units to its executives under the 2025 Equity Incentive Plan, with vesting conditions aimed at retaining these key leaders.