Ambiq Micro, Inc. (AMBQ) AI Stock Analysis

• Market Cap: $644.53M
• Dividend Yield: N/A
• Average Volume (3M): 212.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 190
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 20,953,579
• 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: 0.73
• Enterprise Value/Revenue: 9.11
• Enterprise Value/Gross Profit: 20.29
• Enterprise Value/Ebitda: -22.49
• 1Y Price Target: $36.00
• Price Target Upside: 17.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.32
• Revenue Forecast (FY): $85.74M

• Rating: 46 Neutral
• Price Target: $30.00 ▼(-2.47% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily held back by weak financial performance, driven by persistent losses and negative operating cash flow despite revenue growth and low leverage. Technicals are neutral-to-soft with mixed momentum signals, and valuation is unattractive due to a negative P/E and no dividend yield.

Positive Factors

Low leverage and strong equity position

A low debt load and healthy equity ratio provide lasting financial flexibility, reducing default risk and enabling continued investment in product development and go-to-market activities. This structural balance-sheet strength supports strategic options during semiconductor cyclicality.

Sustained revenue growth (16% YoY)

Recurring mid-teens revenue growth shows durable market traction for Ambiq's products. Continued top-line expansion can enable operating leverage over time, improving gross margin absorption and positioning the company to scale R&D and customer support without relying solely on external funding.

Focused ultra-low-power product specialization

A clear technical niche in ultra-low-power MCUs and Sub-GHz wireless addresses structural demand in wearables, IoT, and battery-constrained devices. This specialization creates a durable competitive advantage through differentiated IP, licensing potential, and stronger product stickiness with OEM customers.

Negative Factors

Persistent negative profitability

Ongoing negative margins indicate structural challenges in cost base, pricing, or product mix that limit the firm's ability to self-fund growth. Persistent losses hurt ROE and reduce retained-capital accumulation, forcing reliance on external financing or slower, equity-dilutive growth strategies.

Negative operating cash flow

Sustained negative operating cash flow undermines internal liquidity and constrains investment in production, inventory, and R&D. Even with some free-cash-flow improvements, persistent OCF deficits create a structural dependency on external capital and limit long-term operational autonomy.

Recent equity offering and selling-stockholder sale

Large share offerings and selling-stockholder activity can reflect limited internal funding or shareholder liquidity needs. Structurally, increased share supply and potential future raises can dilute ownership, complicate long-term investor alignment, and signal reliance on external capital for sustaining operations.

Ambiq Micro, Inc. Business Overview & Revenue Model

Company Description

Ambiq Micro, Inc. develops ultra-low-power integrated circuits for power-sensitive applications. It develops subthreshold power-optimized technology based on ultra-low-power real-time clock and microcontroller products for application in wearables, smart cards, wireless sensors, and Internet-of-Things (IoT) products. The company's flagship products include Apollo, a system on a chip for edge AI devices with host processors capable of software-based AI computations and Atomiq, targeting AI applications to provide AI acceleration along with new memory innovations. The company also offers technical support services. It offers products through sales representatives. Ambiq Micro, Inc. was formerly known as Cubiq Microchip, Inc. and changed its name to Ambiq Micro, Inc. in October 2012. The company was incorporated in 2010 and is based in Austin, Texas with additional offices in Shanghai and Shenzhen, China; Hsinchu, Taiwan; and Singapore.

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

Revenue growth improved (+16%), and leverage risk appears low, but profitability remains weak with persistently negative net profit, EBIT, and EBITDA margins. Cash flow quality is also a concern given negative operating cash flow, despite some improvement in free cash flow trends.

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
MTSI	73 Outperform	$19.39B	121.55	12.95%	―	32.58%	-173.04%
NXPI	67 Neutral	$56.80B	28.39	21.01%	1.79%	-6.81%	-23.16%
SLAB	67 Neutral	$6.75B	-102.96	-5.97%	―	47.10%	64.29%
SWKS	64 Neutral	$8.86B	22.90	6.49%	4.37%	-2.18%	-16.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MCHP	58 Neutral	$40.21B	-258.11	-1.09%	2.79%	-23.36%	-131.15%
AMBQ	46 Neutral	$644.53M	-15.59	―	―	―	―

Ambiq Micro, Inc. Corporate Events

Ambiq Micro Appoints Bernard Banks to Expanded Board

Effective January 5, 2026, Ambiq Micro, Inc. expanded its board of directors from six to seven members and appointed leadership expert Dr. Bernard B. Banks as a Class III director, with a term running until the 2028 annual meeting of stockholders, and as a member of the board’s Audit Committee. Banks, currently Director of Rice University’s Doerr Institute for New Leaders and a former U.S. Army Brigadier General with extensive academic and leadership credentials, will receive standard non‑employee director compensation, has entered into the same form of indemnification agreement as existing directors, and joins the board without any family ties, appointment arrangements, or related‑party transactions with the company.

The most recent analyst rating on (AMBQ) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Ambiq Micro, Inc. stock, see the AMBQ Stock Forecast page.