AMBQ

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Ambiq Micro (AMBQ) is back in focus after its second quarter 2026 earnings report. The company reported higher sales, a smaller net loss, and issued fresh guidance pointing to further revenue in the upcoming quarter. See our latest analysis for Ambiq Micro. The latest earnings beat and higher guidance have kept interest in Ambiq Micro elevated, even as the 30 day share price return is down 19.37%. The stock still carries strong momentum, with a year to date share price return of 116.11% and a 1 year total shareholder return of 71.07% at a share price of $65.59. If Ambiq Micro's edge AI story has your attention, it can be useful to see what else is moving in this space and scan 70 profitable AI stocks that aren't just burning cash After a sharp pullback but a year-to-date surge, Ambiq Micro now trades about 31% below the average analyst target. Is that discount a sign of excessive caution around losses and supply constraints, or a genuine warning? Ambiq Micro's most followed valuation narrative pegs fair value at $70.20, slightly above the last close at $65.59, which puts the recent pullback into context. Read the complete narrative. Want to understand why this narrative still sees room above today's price? Revenue growth, margin lift and a rich future earnings multiple sit at the core. Curious how those pieces fit together and what kind of profitability shift is baked in over the coming years? Result: Fair Value of $70.20 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh that against key risks, including slower edge AI adoption in wearables and extended losses if new design wins take longer to materialize. Find out about the key risks to this Ambiq Micro narrative. The fair value narrative for Ambiq Micro suggests a modest 6.6% upside to $70.20, yet the current P/S ratio of 16.2x tells a different story. That compares with 7.1x for the US Semiconductor industry and a 6.9x fair ratio that our model suggests the market could move towards. If sentiment cools and the P/S multiple gravitates closer to that fair ratio or peer levels, many of the expectations embedded in today's $65.59 price could come under pressure. The question for you is whether the current premium feels like justified enthusiasm or stretched optimism. See what the numbers say about this price — find out in our valuation breakdown. If the mixed tone around Ambiq Micro leaves you uncertain, it can help to move quickly, review the numbers yourself, and weigh both sides of the story with 1 key reward and 4 important warning signs If Ambiq Micro has sharpened your interest, do not stop here. Use this momentum to scan other opportunities that could fit your portfolio just as well. Spot potential value opportunities early and review companies that screen as high quality but are currently out of favour using the 49 high quality undervalued stocks. Strengthen your income stream and compare companies that aim to maintain sizeable payouts with the 9 dividend fortresses. Lower your overall portfolio risk and focus on companies that show resilient fundamentals through the 85 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AMBQ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Vice President of Corporate Marketing and Investor Relations - Charlene Wan Chief Executive Officer - Fumihide Esaka Chief Financial Officer - Jeffrey Winzeler Founder and Chief Technology Officer - Scott Hanson Operator: Good morning, and welcome to the Ambiq Micro Second Quarter 2026 Earnings Conference Call. As a reminder, this conference call is being recorded. [Operator Instructions] I'd now like to turn the call over to Ms. Charlene Wan, Ambiq's Vice President of Corporate Marketing and Investor Relations. Charlene, please go ahead. Charlene Wan: On today's call, Ambiq's CEO, Fumihide Esaka, will provide an overview of the company's performance and strategy. CFO, Jeffrey Winzeler, will then discuss the quarter's financial results and outlook. Following their remarks, Scott Hanson, Ambiq's Founder and CTO, will join Fumi and Jeff for Q&A. Our earnings release is available on the Investor Relations page of our website at www.ambiq.com. We have also posted our earnings presentation on the Investor Relations section of our website. Before I turn the call over to Fumi, I'd like to remind our listeners that during the course of this conference call, management will discuss non-GAAP financial measures. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in our earnings release available on the company's Investor Relations website. In addition, today's call will contain forward-looking statements representing management's beliefs and assumptions only as of the date made. Our most recent quarterly report on Form 10-Q and other filings with the SEC provide more information on specific risks that may cause the actual results to differ materially from current expectations. And now it's my pleasure to turn the call over to Ambiq's CEO, Fumi Esaka. Fumihide Esaka: Good morning, everyone, and thank you for joining us. Since the start of the year, we've seen a step change in demand for Edge AI, which supports our strong performance and further increases our conviction in the magnitude and durability of the long-term opportunity. Across end markets, companies are embedding more sophisticated AI into a broader range of devices and end-user demand is far exceeding our expectations and those of our customers. With our full stack ultra-low power solutions, Ambiq's defining technologies are not only enabling but further accelerating this next chapter in AI. This positions us to continue outpacing the broader market as we take share and expand our addressable opportunity. This momentum is reflected in our second quarter results. Net sales were ahead of guidance, growing approximately 90% over last year and marking our fifth consecutive quarter of sequential growth. We also raised approximately $168 million in net proceeds through a successful follow-on offering. The strong investor interest serves as a proof point of confidence in our ability to capitalize on the meaningful opportunity ahead. Turning to the details of the quarter. Demand accelerated across customers, end markets and products. Customer programs grew on healthy end-user demand, positive response to customers' recent launches and continued ramping of our newest large customer. This supported strong performance across key products, including double-digit growth in Apollo II and Apollo IV, while Apollo V sales more than doubled year-over-year. With lean inventory across channels and continued expedite requests, we are confident that this demand reflects underlying end market consumption rather than inventory replenishment. Orders continue to exceed initial forecasts. And based on our ongoing customer conversations, we expect underlying demand for Edge AI to strengthen even further in the second half of 2026. At the same time, we and the broader semiconductor industry are increasingly supply constrained. We are working closely with our supply chain partners to support production ramps while maintaining the high level of quality and execution our customers expect. With tight capacity across wafers, packaging, substrates and testing, we are actively working to secure additional foundry allocations and OSAT capacity to improve supply flexibility and better support customer demand over time. Even with these actions, our second half outlook is constrained by available supply given the significant levels of demand we are seeing. As additional capacity becomes available, we believe we are well positioned to convert this deferred demand into future revenue. Based on our current visibility, we expect third quarter net sales to grow approximately 100% year-over-year, and we now expect to deliver approximately $135 million in net sales for the full year, even with the supply constraints I just mentioned. Looking ahead, we believe the opportunity for Ambiq is substantial. With more than 20 billion connected devices already deployed, there is significant potential to embed Edge AI across this large and growing installed base. While adoption remains at an early stage, increasing AI functionality at the edge is driving demand for greater compute and memory content across a growing range of devices and use cases. As these workloads become more sophisticated, customers must deliver higher levels of intelligence and performance without compromising battery life, responsiveness or privacy. That challenge is making power efficiency a critical design requirement for the next generation of edge devices. These requirements are redefining what matters most in semiconductor design. Power efficiency is no longer just an advantage. It is becoming a fundamental requirement for the next generation of edge AI devices. That is exactly where Ambiq is uniquely positioned to lead and create value. To capture this opportunity, we are broadening our reach across form factors, customers and end markets while investing in the next generation of products that will push the boundaries of ultra-low power performance. Our latest hardware and software innovations are further enhancing our ability to support increasingly advanced AI workloads at the edge. On the hardware side, we recently introduced the Apollo 330 Plus and Apollo 510 Light SoC families. Both products are generating strong customer demand with backlog tied to next-generation product road maps. We expect these products to begin contributing revenue in the third quarter with the first customer devices expected to reach the market early next year. We are also expanding the value of our solutions through a growing suite of AI software capabilities. Our recently launched HeliaCORE and compression kit are already helping customers accelerate production deployments, improve power efficiency, reduce memory requirements and lower overall system costs. More recently, we introduced Helia Profiler, an open source profiling tool that broadens the Helia AI ecosystem and gives developers greater visibility into model performance and system optimization. The breadth and depth of our full stack portfolio is enabling us to support more applications, win new customers and expand into diverse end markets. This includes greater penetration in medical, industrial and smart home and building applications. We continue to expect revenue from these markets to more than double in 2026, making them a more meaningful contributor to Ambiq's growth and diversification. And we expect this momentum to continue, supported by a growing and increasingly diverse design funnel. For example, in wearable neurotechnology, on-device AI is being used to analyze complex biosignals like EEG in real time, improving responsiveness and privacy. In smart buildings, leak detection systems can distinguish meaningful events directly at the sensor, reducing data transmission while enabling faster intervention. And in industrial applications, always-on sensors monitor equipment health in real time, detecting failures before they disrupt operations. These are exactly the types of workloads our ultra-low power SoCs and innovative AI software are designed to support, positioning us well to capture the next wave of edge AI adoption across multiple high-growth markets. Turning to our product road map. We continue to advance our next-generation products, Apollo 340, Atomiq 110 and Atomiq 120. Customer interest remains incredibly strong, including engagement with Alpha customers as these products are critical enablers for our customers to advance their own ambitious AI road maps. Development for these products continues to advance with both Atomiq 110 and Apollo 340 targeted for customer sampling in early 2027. In closing, the customer demand we are seeing today reinforces our belief that Edge AI is becoming one of the most important long-term growth drivers in the semiconductor industry. While near-term supply constraints remain an industry-wide headwind, we are taking decisive actions to support our customers. As we look ahead, we are exceptionally well positioned to capture the meaningful long-term opportunity in Edge AI through differentiated technology and expanding product portfolio and growing customer engagement. With that, I will turn it over to Jeff to cover the financials. Jeffrey Winzeler: Thank you, Fumi, and good morning, everyone. We delivered a strong second quarter with non-GAAP gross profit more than doubling year-over-year. This marks our fifth consecutive quarter of growth and reflects the strength of our differentiated technology, accelerating Edge AI demand environment and strategic shift to higher-value market opportunities for our products. Now turning to the details of our second quarter financial results. Net sales were $33.9 million, increasing 89.7% year-over-year with revenue outside of our 3 largest customers growing 143% year-over-year. Sales to end customers in China were approximately 14% of total net sales compared to approximately 12% in the prior year period. Our continued strategy with regard to China is to engage in customer programs where our technology is enabling higher-value edge AI functionality. Non-GAAP gross profit increased 109.3% year-over-year to $16 million. Non-GAAP gross margin was 47.2%, up 450 basis points year-over-year on favorable mix related to greater edge AI enablement as well as improved manufacturing efficiencies. Turning to operating expense. Non-GAAP R&D was $11.2 million, up 55.5% year-over-year as we increased investments in product development and technology. The primary drivers for R&D increases were intellectual property licensing for multiple product developments, compensation costs as we scale the team and contractor costs to augment our own labor. Non-GAAP SG&A expenses were $8.2 million, up 23.7% year-over-year, driven largely by sales compensation for higher revenues and public company costs. Second quarter non-GAAP net loss was $1.8 million, a $4.1 million improvement year-over-year. Non-GAAP net loss per share was $0.07 based on 21.74 million average shares outstanding. We ended the quarter with no debt and $366.8 million in cash and cash equivalents, which included approximately $168 million in net proceeds from our upsized follow-on offering in June of this year. In total, our 2 offerings this year raised approximately $243 million in net proceeds, providing us the financial flexibility to fund working capital, sales and marketing and product development as we continue to capitalize on the growing edge AI demand and scale to meet customer needs. Now turning to our outlook. For the third quarter, we expect net sales in the range of $36 million to $37 million, driven by the trends covered by Fumi earlier. We expect non-GAAP gross margin between 46.5% and 47.5%, which is consistent with the second quarter performance. Non-GAAP operating expense of $24 million to $25 million, reflecting investments to support product development and strategic growth priorities, including $2 million related to intellectual property purchases in the quarter. Finally, we expect a non-GAAP loss per share of $0.20 to $0.12 based on a weighted average share count of 24.17 million shares outstanding. This new share count is reflective of our follow-on offering in June. Looking ahead, customer demand is accelerating meaningfully as we enter the second half of the year. At the same time, we are navigating increased supply constraints and rising cost pressures alongside the broader industry. Despite this, we are on track to double year-over-year net sales growth in the second half, positioning us to deliver approximately $135 million for the full year. For gross margin, we now expect modest year-over-year improvement in 2026 compared to our prior 2026 expectations for flat margins year-over-year. And we expect to achieve this even with the broader industry headwinds we are navigating. We continue to expect operating expense of approximately $85 million for the full year, including $7 million to $10 million of IP purchases necessary for product development. With that, I'll turn the call back over to Fumi before we open the line for Q&A. Fumihide Esaka: We are pleased with our performance in the first half of 2026 and encouraged by the momentum we continue to see across the business. We remain focused on delivering for our customers, expanding capacity, advancing our product road map and investing for long-term sustainable growth. We believe the foundation we have built positions Ambiq well for the opportunities ahead, and we remain confident in our ability to execute. With that, I will open the call to questions. Operator, please go ahead. Operator: Your first question comes from the line of Tore Svanberg with Stifel. Tore Svanberg: Humi, Jeff, congratulations on the strong results. Humi, I was hoping you could elaborate a little bit more on the supply constraints. I guess the question is, had you had the capacity, how much more could can the '26 be? And when do you expect some of these supply issues to ease? Fumihide Esaka: Tore, thanks for the great question. And our customers' demand is skyrocketing like we said in our statement. And as we speak, our demand keep on going up. So I cannot put a specific number, but I must say that a lot of additional demand is coming in week after week. And we believe that this trend will continue not only second half of this year, but even into the 2027. That said, because of the fact that our demand continues to grow faster than market, I believe that the constraint will be something -- supply constraint is something that we need to diligently work with our supply chain partners. But as you can see, we do have a very strong partnership with supply chain partners. So despite the fact that we are like doubling our revenue over-to-year comparison, we have been able to meet those demand, and we believe that we will be able to meet forecasted quantity as closely as possible. Again, one challenge is that the customer success has been phenomenal. Let me tell you one example. A couple of customers introduced a brand-new product back in May. Their preorder quantity was 3 to 5x of what even they expected. So to meet that demand, they wanted a product in June that's physically impossible. So we couldn't do that. But we will work with our supply chain partner and the customer to sustain our continuous growth -- very strong continuous growth. Tore Svanberg: Yes. No, that's great color. And maybe as my follow-up question for you, Scott, and specifically on product development and atomiq It sounds like the first atomiq product is going to be sampling first half of next year. Just curious, are we still looking at a 2028 revenue ramp from the Atomiq products? Scott Hanson: Yes. Thank you. Yes, that's all still the plan, 2028 meaningful ramp for Atomiq 110. Great progress in the last several months since our last call. Probably the most notable thing is that the early development platform is in customer hands in the form of an FPGA, and we're getting a lot of useful feedback. And there are -- the sales team is building a nice list of customers that want access to that product. And so I'm excited about that. And it's interest that spans a couple of different markets. So that's very positive. So yes, I'm pleased with how that's going. And I will say it's a busy time for the development team because we're developing multiple products in parallel. We've got Atomiq 110. We've got Apollo 340. So a lot going on, and I'm pleased with how things proceed. Operator: Your next question comes from the line of Quinn Bolton with Needham & Company. Unknown Analyst: This is Shan on for Quinn. Congrats on all the progress. I guess on the gross margin for Q2 and Q3 coming in much better than expected. So I just wanted to hear the puts and takes on what's driving the strength here, especially with the rising component costs and supply constraints. Jeffrey Winzeler: Yes. So there's 2 basic things that we've really made significant progress on that have allowed us to achieve gross margins a little bit above our business model. On the top side, from an ASP perspective, we continue to win business and price our products to extract the maximum value that we're providing to end customers. So pricing continues to be something that we look at and make sure that we're balancing to get the most that we can from the products that we sell. We've also made a lot of progress on the actual manufacturing costs associated with our products. And this is primarily through yield improvements and test time improvements as we ramp products into full-scale manufacturing. That is being muted a little bit by some of these cost pressures that we're seeing, but making progress on both the top side as well as the cost basis for our products is what's allowed us to deliver these margin results. Unknown Analyst: Got it. That's helpful. And then in terms of just the strong demand in the wearables market, it sounds like it's pretty broad-based, but is there any form factor that you guys are seeing more demand for, whether that's the watches, the band, rings or glasses? Jeffrey Winzeler: Yes. We are indeed seeing demand across all types of wearables, right? So whether it's wrist-based it watches and vans, displayless bands or smart rings or even glasses. What I will say is that one of the hot new areas is displayless trackers. So that would encompass both your smart rings as well as trackers like the Loop device and like the new Fitbit Air. There's a great demand for that. And I would say that what's driving that is that there's this movement towards AI agents in the cloud, gathering us all this data. You don't necessarily need the display right there to tell you what's going on. And so you rely on the AI agent to analyze all your data and give you feedback about how to adjust your sleep and how to adjust your eating and so forth. And as we've talked about in the past, these devices become almost like medical devices. So we're really excited about the future there. We see our customers being very excited about the future there. So I expect good things out of that segment moving forward. Operator: Your next question comes from the line of Liam Pharr with Bank of America. Liam Pharr: I was wondering if you could start with just discussing kind of your revenue mix across end markets. And especially in your funnel, is it still the markets outside of wearables comprising around 25%? Or has that picked up over the last couple of quarters? Fumihide Esaka: Yes. Well, one of the edge AI devices and really, we call it personal devices growth is phenomenal. So we believe that, that will continue to grow. That said, nonwearable market is also growing. Like we said in the script, we said we doubled nonwearable demand. However, because the denominator is growing so fast in personal devices with Edge AI capability, that absolute number may not be as great as what we'd like to see, but its growth is very strong. Jeffrey Winzeler: And then what I'll add is that it does remain true that if we look at new designs launching next year, roughly 25% plus of that funnel is nonwearable devices. So that remains true, but we're, to some extent, assuming said victims of our own success because everything else is going so well. So I would say good progress, but maybe not as fast as one might like in these fast-growing times. And then $1.8 million of net loss for the quarter. I was wondering if you could just kind of provide some color on that trajectory towards profitability on the bottom line. And is atomiq needed to get there? Or can we see some profitability or even free cash flow breakeven in fiscal '27? Scott Hanson: Yes. I think we're very, very pleased with our progress in terms of reducing the operating loss that you're seeing quarter-over-quarter. This is a very fast-growing revenues. We're spinning off even higher percentage of gross profit dollars and our spending is not growing as fast. Although what I would point to is if you look at our guidance for Q3, we expect OpEx to jump back up. And again, this is really investments around our 110 and 340 development. I think it's too early to really talk about that tipping point of when we'll get to cash flow breakeven. We're very much focused on a growth model right now. And in fact, we've raised quite a bit of money in the last 2 offerings that we've done specifically to give us the cash resources to both grow our existing pipeline of business as well as develop new business opportunities. And so we'll continue to be investing those dollars pretty heavily. And it's too early really to talk about when we expect to get to a profitability metric. Operator: Your next question comes from the line of Suji Desilva with ROTH Capital. Sujeeva De Silva: Scott, Jeff, congratulations on the progress here. In talking about the in the nonwearable market guys, is there a channel or ecosystem partner strategy to help penetrate the broader industrial customer base is it through your customers to their customers? Or just any way that, that would be accelerated through a channel strategy? Fumihide Esaka: Well, we're working with various partners, including a distribution partner and some of the reps. So we are expanding. However, as you know, those market does take a little bit longer than the consumer market. So we are seeing a very strong, like I said, doubling year-after-year demand, but it will take a little time. But yes, we're very optimistic that those market will grow and will be a significant part of our future revenue. Jeffrey Winzeler: Yes. And I would say that the cool thing if I look at medical, industrial, smart home is the huge diversity of use cases that appear in our funnel, whether it's opportunities we're engaging with or wins that we have, but it's everything from Holter monitors to fetal heart rate monitoring to EEG, brain monitors, ECG patches, seizure detection devices. On the industrial side, you've got radiation dosimeters, implantable animal monitors, seabed sensing. So a huge variety of stuff. And then the other thing I'll mention from a partner side is a lot of what these customers sell is its modules, right? So it's devices that we sell a chip to the module manufacturer and they go off and sell -- aggregate a bunch of other customers. And in that way, we reach a broader customer base. So bottom line is we're very pleased with the diversity of customers that we're seeing, and we're optimistic about the future there. Scott Hanson: [indiscernible] growing fast outside of wearables. And I think you're going to see edge AI world of devices all around your personal life. So we're very confident that it's going to expand faster. Sujeeva De Silva: Sounds exciting. And then my second question, obviously, a great job on the fundraising here. Now that you have the stronger balance sheet, I'm wondering your thoughts and strategy on inorganic and if there are kind of product holes, software or hardware that could expand? Or what the thoughts there are as you go forward, obviously, strong organic growth. So wondering what the thinking is there? Fumihide Esaka: Yes. We cannot talk about like what's our strategy on organic or inorganic growth. But definitely, we're using that to expand our portfolio of the product, and it could be beyond what we talked about at Poland on Atomiq. But please stay tuned. We're very excited. Having these kind of funds [indiscernible] our portfolio is really exciting to us. Operator: Your next question comes from the line of Tim Arcuri with UBS. Timothy Arcuri: Jeff, I want to ask about OpEx. So it's ballooning a bit in September. The full year implies it's going to go down a touch in December. But the $7 million to $10 million worth of IP purchases, it's not something that you called out in the past. So how much of this is sort of recurring as we head into '27? So basically, kind of what's the right baseline off of that $23 million in December and these IP purchases continue into the first half of next year? Jeffrey Winzeler: Well, we talked about IP purchases at the very beginning of the year. And in terms of that $85 million of OpEx spending for 2026, we said that the IP piece of it would be about $7 million to $10 million in the OpEx line. I think we're just reiterating the fact that we still are on track to spend about that much for the year, both the $85 million as well as the $7 million to $10 million for IP. That IP is directly linked to the 110 and 340 development. It's a variable cost associated with building new products. So when we think about the future, we will continue to spend money where we need to license IP to develop products beyond 340 and 110. Timothy Arcuri: Okay. So it's going to recur into next year. That's the answer to the question... Jeffrey Winzeler: Correct? It will be tied directly to the products that we're developing on our road map. Timothy Arcuri: Okay. Okay. Then how about this? So of the year-over-year growth in revenue, so of the, let's say, $18 million September '26 versus September '25, how much of that is units versus price? It's Jeffrey Winzeler: It's -- I can't give you an exact percentage, but clearly, to get that type of growth, it's unit based. I mean the demand for end customers on a unit basis is exceeding all of our expectations. And so units are the primary driver to our revenue growth. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Thank you. Before you buy stock in Ambiq Micro, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ambiq Micro wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Ambiq Micro. The Motley Fool has a disclosure policy. Ambiq (AMBQ) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Ambiq Micro, Inc. AMBQ reported second-quarter 2026 non-GAAP loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The company had incurred a loss of 43 cents per share in the year-ago quarter. AMBQ generated net sales of $33.9 million, which increased 89.7% year over year and beat the Zacks Consensus Estimate by 7.62%. The strong performance reflected accelerating demand for edge AI solutions across customers, end markets and products. Ambiq's second-quarter performance was driven by a sharp increase in demand for edge AI, with net sales marking the company's fifth consecutive quarter of sequential growth. Management said demand accelerated across customers, end markets and products, supported by healthy end-user demand, positive responses to recent customer launches and the continued ramp of a large new customer. Apollo II and Apollo IV posted double-digit growth, while Apollo V sales more than doubled year over year. The company also indicated that demand remains stronger than expected. With lean channel inventories and continued expedite requests, management believes the growth reflects underlying end-market consumption rather than inventory replenishment. Orders continue to exceed initial forecasts, while customer demand is expected to strengthen further in the second half of 2026. Ambiq Micro, Inc. price-consensus-eps-surprise-chart | Ambiq Micro, Inc. Quote Ambiq's non-GAAP gross profit increased 109.3% year over year to $16 million, while non-GAAP gross margin expanded 450 basis points to 47.2%. The improvement was driven by a favorable product mix, greater Edge AI enablement and manufacturing efficiencies. Management also highlighted progress in pricing and manufacturing costs. The company has continued to price products to capture the value provided to customers, while yield improvements and shorter testing times have helped reduce manufacturing costs as products move into higher-volume production. Non-GAAP research and development expenses increased 55.5% year over year to $11.2 million, primarily due to intellectual property licensing, higher compensation and contractor costs. Non-GAAP SG&A expenses rose 23.7% to $8.2 million, largely reflecting higher sales compensation and public-company costs. Despite increased investments, non-GAAP net loss narrowed to $1.8 million from $5.9 million in the year-ago quarter. Ambiq is broadening its Edge AI opportunity through new hardware and software offerings. The company recently introduced the Apollo 330 Plus and Apollo 510 Light SoC families, both of which are seeing strong customer demand and backlog tied to next-generation product roadmaps. The products are expected to begin contributing revenues in the third quarter, with initial customer devices expected to reach the market early next year. The company has also expanded its AI software portfolio with HeliaCORE, compressionKIT and Helia Profiler. These tools are designed to help customers accelerate production deployments, improve power efficiency, reduce memory requirements and lower system costs. Ambiq is seeing increasing opportunities beyond wearables, including medical, industrial and smart home and building applications. Management expects revenues from these markets to more than double in 2026. The earnings presentation also highlights Apollo-based solutions and new software tools aimed at expanding Ambiq's presence across personal devices, industrial edge, smart home and buildings, and medical and healthcare markets. Ambiq ended the quarter with $366.8 million in cash and cash equivalents and no debt. The balance sheet was strengthened by approximately $168 million in net proceeds from its June follow-on offering, while the company said its two offerings in 2026 have raised approximately $243 million in net proceeds to support working capital, sales and marketing, and product development. For the third quarter of 2026, Ambiq expects net sales between $36 million and $37 million, representing the sixth consecutive quarter of sequential growth. The company expects non-GAAP gross margin of 46.5-47.5%, non-GAAP operating expenses of $24-$25 million and a non-GAAP loss per share of 12-20 cents. For full-year 2026, Ambiq expects approximately $135 million in net sales, with second-half revenues expected to more than double year over year despite supply constraints. The company now expects modest year-over-year improvement in full-year non-GAAP gross margin and operating expenses of approximately $85 million, including $7-$10 million of planned intellectual-property investments. Currently, AMBQ carries Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Shares of Lumentum have surged 141.5% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year. Shares of Applied Materials have jumped 109.8% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 3 cents over the past seven days, indicating a rise of 29.2% year over year. Analog Devices shares have surged 43.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 33.9% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ambiq Micro, Inc. (AMBQ) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered record quarterly net sales, increasing approximately 90% year-over-year, driven by strong demand for edge AI solutions Gross profit more than doubled year-over-year on higher net sales and margin expansion Expect third quarter net sales of $36.0 million to $37.0 million, which would represent the sixth consecutive quarter of sequential growth AUSTIN, Texas, August 11, 2026--(BUSINESS WIRE)--Ambiq Micro, Inc. ("Ambiq") (NYSE: AMBQ), a technology leader in ultra-low-power semiconductor solutions for edge AI, today announced financial results for the second quarter 2026. Second Quarter 2026 and Recent Highlights Delivered strong net sales on growing edge AI demand momentum: Net sales increased approximately 90%, year-over-year, driven by accelerating edge AI demand across customers, end markets and products. Gross profit outpaced net sales growth: GAAP gross profit increased approximately 113% and non-GAAP gross profit increased approximately 109% year-over-year, with GAAP gross margin and non-GAAP gross margin expanding by 490 basis points and 450 basis points respectively. Enhanced financial flexibility to capitalize on growth opportunities ahead: Completed an upsized public offering in June, raising approximately $168 million in net proceeds. Expanded edge AI software stack: Launched heliaCORE and compressionKIT to accelerate customers' deployment of small footprint and energy efficient AI models on the Apollo SoC families. We also announced heliaPROFILER, a new open-source profiling tool that speeds customers' AI model development. Strengthened global capital markets access: Announced a dual listing on the Singapore Exchange Main Board under ticker AMQ, expanding investor reach across Asia and reinforcing our long-term growth strategy in the global semiconductor market. Management Commentary "Since the start of the year, we have seen a step-change in demand, further reinforcing our belief in the scale and durability of the edge AI opportunity. That momentum drove our net sales up approximately 90% year over year, marking our fifth consecutive quarter of growth, and we expect demand to strengthen even further in the second half of the year," said Fumihide Esaka, CEO of Ambiq. "Given the rapid acceleration in AI demand, we and the broader semiconductor industry are facing supply constraints. Even with this, we are on pace to more than double net sales in the second half of 2026 compared to last year. We are acting decisively to expand capacity, support our customers and capture the full opportunity we see to enable the next generation of intelligent edge products." Summary of Second Quarter 2026 Results Third Quarter Business Outlook1 Ambiq’s current expectations for the quarter ending September 30, 2026, include the following: Net sales within a range of $36.0 million to $37.0 million, reflecting accelerating demand for edge AI, partially constrained by industry-wide supply availability Non-GAAP gross margin between 46.5% and 47.5%, driven by favorable mix and manufacturing efficiencies Non-GAAP operating expense of $24.0 million to $25.0 million, reflecting investments to support product development and our strategic growth priorities, including planned intellectual property investments Non-GAAP net loss per share within a range of ($0.20) to ($0.12) based on a weighted average share count of 24.17 million shares outstanding Conference Call Ambiq will host a conference call for analysts and investors today at 8:30 a.m. Eastern Time. Interested participants can access the call by dialing 1-833-461-5787 and providing conference ID 195766563. International callers may join the call by dialing +1-585-542-9983, using the same code. The call will also be available as a live and archived webcast on the Events & Presentations section of Ambiq's Investor Relations website. About Ambiq Micro Ambiq’s mission is to enable intelligence (artificial intelligence (AI) and beyond) everywhere by delivering the lowest power semiconductor solutions. Built on its patented Subthreshold Power Optimized Technology (SPOT®) and the HELIA™ AI platform, Ambiq empowers manufacturers to bring more capable AI to the edge, where power, memory, and energy efficiency are most critical. Ambiq enables more intelligent, always-on edge devices across healthcare, wearables, industrial automation, smart environments, and other emerging AI applications. With more than 300 million devices shipped worldwide, Ambiq continues to shape the future of always-on Edge AI. Headquartered in Austin, Texas, Ambiq serves customers globally. For more information, visit www.ambiq.com. Non-GAAP Financial Measures Ambiq supplements its reporting of financial information determined under generally accepted accounting principles in the United States of America (GAAP), including the use of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP R&D expenses, non-GAAP SG&A expenses and non-GAAP net loss. These non-GAAP financial measures help management make strategic decisions, establish budgets and operational goals for managing the business, analyzing financial results, and evaluating business performance. Ambiq defines non-GAAP gross profit as gross profit adjusted to exclude expenses not directly attributable to gross profit, such as depreciation and amortization, stock-based compensation and gain on nonmonetary transactions. Ambiq defines non-GAAP gross margin as non-GAAP gross profit as a percentage of net sales. Ambiq defines non-GAAP operating expenses, non-GAAP R&D expenses and non-GAAP SG&A expenses as operating expenses, R&D expenses and SG&A expenses, as applicable, adjusted to exclude expenses not directly attributable to operating expenses, R&D expenses and SG&A expenses, as applicable, such as depreciation and amortization, stock-based compensation, severance costs, and IPO and other transaction costs, as applicable. Ambiq defines non-GAAP net loss as net loss adjusted to exclude expenses not directly attributable to the performance of operations, such as income taxes, depreciation and amortization, stock-based compensation, gain on nonmonetary transactions, severance costs, IPO and other transaction costs and warrant valuation. Ambiq believes these non-GAAP financial measures provide additional tools for investors to use in comparing core business and results of operations over multiple periods with other companies in the industry, many of which present similar non-GAAP financial measures. However, Ambiq's presentation of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP R&D expenses, non-GAAP SG&A expenses, and non-GAAP net loss may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. These non-GAAP measures have limitations, and should not be considered as the sole measures of our performance and should not be considered in isolation from, or as a substitute for, the most comparable measure calculated in accordance with GAAP. Forward-Looking Statements The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," or "anticipates," or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release, and include, but are not limited to, statements relating to Ambiq's expectations around its strategic initiatives, growth trajectory and expected third quarter business outlook. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify including those described in the section titled "Risk Factors" in Ambiq's Annual Report on 10-K for the year ended December 31, 2025, as well as in other filings Ambiq may make with the SEC in the future. Ambiq's expectations, beliefs and projections are expressed in good faith and Ambiq believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Any forward-looking statement in this press release speaks only as of the date of this release. Ambiq undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. Availability of Information on Our Website We routinely use our investor relations website (ir.ambiq.com) to post presentations to investors and other important information, including information that may be material. Accordingly, we encourage investors and others interested in Ambiq to review the information it makes public on its investor relations website. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811493144/en/ Contacts Company Contact Charlene WanVP of Corporate [email protected] Investor Relations Contact TeneoChristina [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 90% year-over-year revenue growth to a step change in Edge AI demand, with end-user consumption far exceeding initial customer expectations. Performance was driven by double-digit growth in Apollo II and Apollo IV, while Apollo V sales more than doubled year-over-year, supported by the ramping of a new large customer. Lean channel inventory and persistent expedite requests indicate that growth reflects underlying end-market consumption rather than inventory replenishment cycles. The company is navigating significant supply constraints across wafers, packaging, substrates, and testing, which is currently limiting the ability to meet total customer demand. Management is actively working to secure additional foundry allocations and OSAT capacity to improve supply flexibility and convert deferred demand into future revenue. Strategic expansion into medical, industrial, and smart home markets is progressing, with revenue from these diverse applications expected to more than double in 2026. Power efficiency is being redefined as a fundamental requirement rather than just an advantage as Edge AI workloads become more sophisticated and memory-intensive. Third quarter net sales are projected to grow approximately 100% year-over-year, with full-year 2026 revenue is expected to be approximately $135 million despite supply headwinds. Management expects modest year-over-year gross margin improvement in 2026, an upgrade from prior expectations of flat margins, driven by favorable product mix and manufacturing efficiencies. The Atomiq 110 and Apollo 340 products are targeted for customer sampling in early 2027, with a meaningful revenue ramp for Atomiq 110 planned for 2028. Full-year operating expense is projected at approximately $85 million, including $7 million to $10 million in intellectual property purchases necessary for next-generation product development. The company intends to use the $168 million in net proceeds from its June follow-on offering to fund working capital and accelerate product roadmaps to capture long-term Edge AI opportunities. Supply chain constraints are characterized as an industry-wide headwind that is currently capping the company's second-half 2026 revenue potential. Rising component costs and industry-wide inflationary pressures are being partially offset by yield improvements and test time efficiencies as products ramp to full-scale manufacturing. China-based sales accounted for approximately 14% of total net sales, with management focusing specifically on high-value Edge AI functionality within that region. Intellectual property licensing costs are identified as a recurring variable expense tied directly to the sequencing of new product developments on the roadmap. Management declined to provide a specific dollar figure for lost opportunity but noted that customer demand is 'skyrocketing' with new orders coming in weekly. One specific example cited involved a customer launch where pre-orders were 3x to 5x higher than expected, creating immediate demand that was physically impossible to meet. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Early development platforms are already in customer hands via FPGA, with interest spanning multiple diverse end markets. The development team is currently managing parallel tracks for Atomiq 110 and Apollo 340 to meet the 2027 sampling timeline. Margin expansion is being driven by pricing strategies that extract maximum value for Edge AI enablement and significant manufacturing cost reductions. Yield and test time improvements are successfully muting the impact of broader industry cost pressures. Management highlighted 'displayless trackers' like smart rings and health bands as a high-growth area, driven by the rise of cloud-based AI agents. These devices are increasingly functioning as medical-grade monitors for biosignals, requiring the ultra-low power compute Ambiq provides. The company remains in a 'growth model' phase, prioritizing R&D investment over immediate cash flow breakeven. Management indicated that the strengthened balance sheet provides the cash resources to grow the existing pipeline and develop new business opportunities. or portfolio expansion beyond current product lines.

Interested in Ambiq Micro, Inc.? Here are five stocks we like better. Strong growth continued: Ambiq Micro’s Q2 2026 net sales rose 89.7% year over year to $33.9 million, exceeding guidance and marking its fifth consecutive quarter of sequential growth. The company forecast Q3 revenue of $36 million to $37 million and full-year sales of approximately $135 million. Demand is outpacing supply: Edge AI demand drove double-digit growth across Apollo3 and Apollo4 products, while Apollo5 sales more than doubled. However, wafer, packaging, substrate and testing constraints are limiting shipments, with some customer preorder volumes reaching three to five times expectations. Margins and expansion improved: Non-GAAP gross margin increased to 47.2%, while the quarterly non-GAAP net loss narrowed to $1.8 million. An upsized offering strengthened the balance sheet with $366.8 million in cash, supporting investments in new products and expansion into medical, industrial, smart-home and building markets. Ambiq Micro (NYSE:AMBQ) reported second-quarter 2026 net sales of $33.9 million, up 89.7% from a year earlier, as demand for edge artificial intelligence applications accelerated across its customer base and product portfolio. Chief Executive Officer Fumihide Esaka said the company’s sales exceeded its guidance and marked its fifth consecutive quarter of sequential growth. He attributed the performance to healthy end-market demand, customer product launches and the continued ramp of a newer large customer. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “End-user demand is far exceeding our expectations and those of our customers,” Esaka said, adding that the company is seeing continued expedite requests and lean inventory across distribution channels. He said management believes demand reflects underlying consumption rather than inventory replenishment. Ambiq said sales growth was supported by double-digit growth in Apollo3 and Apollo4 products, while Apollo5 sales more than doubled year over year. The company also expects recently introduced Apollo3 Blue Plus and Apollo510 Lite system-on-chip families to begin contributing revenue in the third quarter. Initial customer devices using those products are expected to reach the market early next year. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Management said demand is being constrained by semiconductor supply availability, including wafer, packaging, substrate and testing capacity. Esaka said Ambiq is working with foundry and outsourced semiconductor assembly and test partners to obtain additional allocations and improve supply flexibility. During the question-and-answer session, Esaka said incoming demand continues to rise week after week but did not quantify the amount of revenue that could have been achieved with more capacity. He cited examples of customers whose preorder volumes for new products were three to five times higher than their own expectations, creating requests that could not be fulfilled immediately. → Is Wingstop's Growth Story Losing Steam? Despite those constraints, Ambiq expects third-quarter revenue of $36 million to $37 million, representing roughly 100% year-over-year growth at the midpoint. The company expects approximately $135 million in full-year 2026 net sales. Non-GAAP gross profit more than doubled from the prior-year period, rising 109.3% to $16 million. Non-GAAP gross margin increased 450 basis points year over year to 47.2%. Chief Financial Officer Jeff Winzeler said the margin improvement reflected both pricing and manufacturing progress. The company is seeking to price its products based on the value they provide to customers, while yield improvements and reduced test times have lowered manufacturing costs as products scale into full production. Those gains have been partly offset by rising component costs and broader supply-chain pressures, he said. For the third quarter, Ambiq forecast non-GAAP gross margin of 46.5% to 47.5%. For the full year, it now expects a modest year-over-year gross-margin improvement, compared with its previous expectation for flat margins. Second-quarter non-GAAP research and development expense rose 55.5% year over year to $11.2 million, driven by intellectual-property licensing, compensation and contractor costs. Non-GAAP selling, general and administrative expense increased 23.7% to $8.2 million, largely reflecting sales compensation and public-company costs. The company reported a second-quarter non-GAAP net loss of $1.8 million, an improvement of $4.1 million from a year earlier, or a non-GAAP loss of $0.07 per share. Winzeler said Ambiq remains focused on growth and continued investment rather than providing a timetable for reaching cash-flow breakeven or profitability. Ambiq ended the quarter with no debt and $366.8 million in cash and cash equivalents. The balance included approximately $168 million in net proceeds from an upsized follow-on offering completed in June. The company said its two offerings during 2026 generated about $243 million in total net proceeds. Winzeler said the capital provides flexibility to fund working capital, sales and marketing, and product development. Ambiq continues to expect full-year operating expenses of about $85 million, including $7 million to $10 million of intellectual-property purchases tied to product development. Third-quarter non-GAAP operating expenses are projected at $24 million to $25 million, including approximately $2 million of intellectual-property purchases. Ambiq forecast a non-GAAP loss per share of $0.20 to $0.12 based on 24.17 million weighted-average shares outstanding. Management said it is broadening its reach beyond wearable devices into medical, industrial, smart home and building markets. The company expects revenue from those markets to more than double in 2026. Scott Hanson, Ambiq’s founder and chief technology officer, said more than 25% of the company’s funnel for new designs launching next year consists of non-wearable devices. Hanson said Ambiq is seeing wearable demand across watches, bands, smart rings and glasses, with particular interest in display-less trackers. He said these devices increasingly rely on cloud-based AI agents to analyze health and activity data. Ambiq is also advancing Apollo 340, Atomiq 110 and Atomiq 120. Atomiq 110 and Apollo 340 are targeted for customer sampling in early 2027. Hanson said an early Atomiq 110 development platform, delivered through an FPGA, is already in customers’ hands, and management continues to expect meaningful Atomiq 110 revenue ramping in 2028. Ambiq Micro (NYSE: AMBQ) is a semiconductor company specializing in the design and development of ultra-low-power microcontroller units (MCUs) and application-specific integrated circuits (ASICs). The company's core technology leverages sub-threshold voltage operation to dramatically reduce energy consumption, enabling extended battery life in a broad range of portable and always-on devices. Ambiq's products are particularly well suited for applications where power efficiency is critical, such as wearable electronics, IoT sensors, medical monitoring equipment, and industrial automation systems. The company's flagship product family, the Apollo series of MCUs, offers multi-core architectures, integrated wireless connectivity options, and advanced security features. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ambiq Micro Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Net Sales: $33.9 million, up 89.7% year-over-year. Revenue Outside Top 3 Customers: Grew 143% year-over-year. Non-GAAP Gross Profit: $16 million, up 109.3% year-over-year. Non-GAAP Gross Margin: 47.2%, up 450 basis points year-over-year. Non-GAAP R&D Expenses: $11.2 million, up 55.5% year-over-year. Non-GAAP SG&A Expenses: $8.2 million, up 23.7% year-over-year. Non-GAAP Net Loss: $1.8 million, a $4.1 million improvement year-over-year. Non-GAAP Net Loss Per Share: $0.07 based on 21.74 million average shares outstanding. Cash and Cash Equivalents: $366.8 million, with no debt. Follow-on Offering Net Proceeds: Approximately $168 million raised in June 2026. Q3 2026 Net Sales Guidance: Expected in the range of $36 million to $37 million, growing approximately 100% year-over-year. Q3 2026 Non-GAAP Gross Margin Guidance: Expected between 46.5% and 47.5%. Q3 2026 Non-GAAP Operating Expense Guidance: Expected between $24 million and $25 million. Q3 2026 Non-GAAP Loss Per Share Guidance: Expected between $0.20 and $0.12 based on 24.17 million weighted average shares outstanding. Full Year 2026 Net Sales Guidance: Approximately $135 million. Full Year 2026 Operating Expense Guidance: Approximately $85 million. Warning! GuruFocus has detected 4 Warning Signs with AMBQ. Is AMBQ fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net sales grew approximately 90% year-over-year in Q2 2026, marking the fifth consecutive quarter of sequential growth and exceeding guidance. Non-GAAP gross margin improved 450 basis points year-over-year to 47.2%, driven by favorable product mix and manufacturing efficiencies. Revenue outside the three largest customers grew 143% year-over-year, indicating strong customer diversification and market expansion. The company raised approximately $168 million in net proceeds from a follow-on offering, strengthening its balance sheet with $366.8 million in cash and no debt. New product launches (Apollo 330+, Apollo 510 Light) and software tools (HelioCore, compression kit, Helia Profiler) are generating strong customer demand and expanding the addressable market. The company faces significant supply constraints across wafers, packaging, substrates, and testing, limiting second-half revenue potential despite strong demand. Non-GAAP net loss was $1.8 million in Q2, and the company expects a wider loss per share in Q3 due to increased operating expenses. Operating expenses are rising, with R&D up 55.5% year-over-year and Q3 OpEx expected to jump to $24-25 million, including IP purchases. The company is not yet profitable and management declined to provide a timeline for reaching profitability or cash flow breakeven. China sales exposure increased to 14% of total net sales, which may pose geopolitical and regulatory risks. Q: Humi, could you elaborate on the supply constraints? Had you had the capacity, how much more could calendar 2026 be, and when do you expect these supply issues to ease?A: Fumihide Esaka (CEO): Customer demand is skyrocketing and continues to rise week after week, a trend we expect to persist into 2027. While we can't quantify the exact impact, we are working diligently with our strong supply chain partners to meet demand. One example of the demand surge: a couple of customers launched new products in May, and their pre-orders were three to five times higher than expected, which we couldn't fulfill in June due to physical constraints. Q: Scott, on product development and Atomic, are we still looking at a 2028 revenue ramp for the Atomic products?A: Scott Hanson (CTO): Yes, that's still the plan for a meaningful ramp of Atomic 110 in 2028. We've made great progress, with an early development platform (FPGA) now in customer hands and receiving useful feedback. The sales team is building a strong list of interested customers across multiple markets, and we are developing multiple products in parallel, including Atomic 110 and Apollo 340. Q: Gross margin for Q2 and Q3 is coming in much better than expected. What are the puts and takes driving this strength, especially with rising component costs and supply constraints?A: Jeff Winzeler (CFO): The strength is driven by two main factors. First, we continue to win business and price our products to extract maximum value, so pricing remains strong. Second, we've made significant progress on manufacturing costs through yield improvements and reduced test times as products ramp into full-scale production. These gains are being slightly muted by industry-wide cost pressures, but the progress on both pricing and cost basis has delivered these results. Q: In terms of the strong demand in the wearables market, is there any specific form factor seeing more demand, such as watches, bands, rings, or glasses?A: Scott Hanson (CTO): We're seeing demand across all types of wearables, but one of the hottest new areas is display-less trackers, including smart rings and devices like the Whoop or Fitbit Air. This is driven by the trend of AI agents in the cloud analyzing data, reducing the need for a display on the device itself. These devices are becoming almost like medical devices, and we're very excited about the future of this segment. Q: Could you discuss your revenue mix across end markets? Is the market outside of wearables still around 25% of the funnel?A: Fumihide Esaka (CEO) & Scott Hanson (CTO): The growth in personal devices with edge AI is phenomenal and continues to grow. However, non-wearable markets are also growing strongly, with revenue expected to more than double in 2026. Scott added that for new designs launching next year, roughly 25% plus of the funnel remains non-wearable. The absolute percentage may not shift dramatically because the wearable denominator is growing so fast, but the non-wearable growth is very strong. Q: Can you provide color on the trajectory towards profitability? Is Atomic needed to get there, or can we see profitability or free cash flow breakeven in fiscal '27?A: Jeff Winzeler (CFO): We are pleased with our progress in reducing operating losses, driven by fast-growing revenues and gross profit dollars growing faster than spending. However, Q3 OpEx is expected to jump back up due to investments in the 110 and 340 development. It's too early to discuss a specific tipping point for cash flow breakeven. We are focused on a growth model and raised significant capital specifically to fund growth in our existing pipeline and new business opportunities. Q: Regarding the non-wearable market, is there a channel or ecosystem partner strategy to help penetrate the broader industrial customer base?A: Fumihide Esaka (CEO) & Scott Hanson (CTO): We are working with various distribution and rep partners to expand our reach. The non-wearable market takes longer to develop than consumer markets, but we are seeing strong, doubling year-over-year demand. Scott highlighted the huge diversity of use cases in the funnel, from medical devices like holter monitors and EEG brain monitors to industrial applications like radiation dosimeters and seabed sensing. Many customers sell modules, which helps us reach a broader customer base. Q: Now that you have a stronger balance sheet from the fundraising, what are your thoughts on inorganic growth and potential product holes in software or hardware?A: Fumihide Esaka (CEO): We cannot discuss specific strategies for organic or inorganic growth, but we are definitely using the funds to expand our product portfolio, potentially beyond the Apollo and Atomic lines. We are excited to have these resources and ask you to stay tuned for future developments. Q: Jeff, OpEx is ballooning in September. The full year implies it will go down in December. How much of the $7 to $10 million in IP purchases is recurring as we head into 2027, and what is the right baseline?A: Jeff Winzeler (CFO): We discussed IP purchases at the beginning of the year, reiterating that the $85 million OpEx for 2026 includes $7 to $10 million for IP. This IP is directly linked to the 110 and 340 development and is a variable cost associated with building new products. We will continue to spend on IP licensing for products beyond 340 and 110, so it will recur into next year, tied directly to our product development roadmap. Q: Of the year-over-year revenue growth, how much is driven by units versus price?A: Jeff Winzeler (CFO): I can't give an exact percentage, but clearly, to achieve this type of growth, it is unit-based. End-customer demand on a unit basis is exceeding all expectations, and units are the primary driver of our revenue growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The market expects Applied Materials (AMAT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 13, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This maker of chipmaking equipment is expected to post quarterly earnings of $3.36 per share in its upcoming report, which represents a year-over-year change of +35.5%. Revenues are expected to be $9 billion, up 23.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.47% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Applied Materials, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.52%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Applied Materials will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Applied Materials would post earnings of $2.68 per share when it actually produced earnings of $2.86, delivering a surprise of +6.72%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Applied Materials appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Ambiq Micro, Inc. (AMBQ), another stock in the Zacks Electronics - Semiconductors industry, is expected to report loss per share of $0.26 for the quarter ended July 2026. This estimate points to a year-over-year change of +39.5%. Revenues for the quarter are expected to be $31.5 million, up 76.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Ambiq Micro, Inc. has remained unchanged. Nevertheless, the company now has an Earnings ESP of -0.97%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Ambiq Micro, Inc. will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Ambiq Micro, Inc. (AMBQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Ambiq Micro, Inc. (AMBQ) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 11, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +39.5%. Revenues are expected to be $31.5 million, up 76.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Ambiq Micro, Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.97%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Ambiq Micro, Inc. will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Ambiq Micro, Inc. would post a loss of$0.36 per share when it actually produced a loss of -$0.25, delivering a surprise of +30.56%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Ambiq Micro, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ambiq Micro, Inc. (AMBQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ambiq Micro, Inc. (NYSE:AMBQ) just released its latest quarterly results and things are looking bullish. The results overall were credible, with revenues of US$25m beating expectations by 17%. Statutory losses were US$0.50 per share, 18% below what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the consensus forecast from Ambiq Micro's five analysts is for revenues of US$121.8m in 2026. This reflects a substantial 49% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$2.20 per share. Before this latest report, the consensus had been expecting revenues of US$100.8m and US$2.60 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates. Check out our latest analysis for Ambiq Micro It will come as no surprise to learn thatthe analysts have increased their price target for Ambiq Micro 67% to US$70.20on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ambiq Micro, with the most bullish analyst valuing it at US$72.00 and the most bearish at US$69.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ambiq Micro's rate of growth is expected to accelerate meaningfully, with the forecast 70% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.9% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ambiq Micro is expected to grow much faster than its industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Ambiq Micro going out to 2028, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Ambiq Micro (1 is concerning) you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.