By Prakhar Srivastava
(Reuters) -Chip designer Ambiq Micro on Thursday reported a 16.1% rise in 2024 net sales in its filing for a U.S. initial public offering, as growing demand for generative AI fuels spending on semiconductor technology.
Strong investor demand for AI-focused tech stocks is helping revive the IPO market, as investors warm again to high-growth tech startups they had largely avoided for nearly three years.
The Austin, Texas-based company disclosed a net loss of $39.7 million in 2024, narrowing from a loss of $50.3 million in the previous year. Net sales climbed 16.1% to $76.1 million in 2024.
"Even though the company has had strong sales growth in the past years with large customers like Google and Huawei, Ambiq is exposed to high customer concentration risk by relying on a few large players," said IPOX research associate Lukas Muehlbauer.
Proceeds from the IPO will be used for general corporate purposes, including working capital, sales and marketing activities, and product development.
Analysts expect companies tied to the AI boom to drive the next wave of technology listings, fueled by expectations of rapid growth as businesses adopt more generative AI applications.
The company said it will list on the NYSE under the symbol "AMBQ", joining a wave of chip design firms that are central to the AI boom, as processors driving the demand for faster and more efficient computing.
Founded in 2010, Ambiq Micro provides ultra-low-power semiconductor solutions, targeting the power consumption challenges of general-purpose and AI computing.
Ambiq Micro is targeting "AI at the edge" niche with its ultra‑low‑power chips said to cut power use by 2‑5 times, giving it an edge in fast‑growing wearables market, said Muehlbauer.
Most AI computing uses vast amounts of electricity, driving demand for energy-efficient chips and a shift towards lower-power designs.
BofA Securities and UBS are the lead underwriters for the offering.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Tasim Zahid)
This move by Ambiq Micro to file for an IPO in the U.S., fueled largely by generative AI’s burgeoning demand, shows promising growth prospects as these applications advance our understanding of high-tech chip functionalities.
The decision by Ambiq Micro to file for an Initial Public Offering (IPO) in the U.S., fueled primarily by a surge of demand driven by generative AI, underscores Chipmakers' growing importance and role as key enablers managing computing power at scale.
The announcement of Ambiq Micro's filing for a U.S IPO amidst the surging demand fueled by generative AI illustrates both an exciting opportunity and fierce competition in the cutting-edge chip industry.
Ambiq Micro's pursuit of an Initial Public Offering in the U.S.—impetused by a surge-in demand for chips due to generative AI—signals not only their confidence but also reflects shifting industry focus towards advanced computing technologies.
Exciting news! The filing of Ambiq Micro for a U.S IPO is testament to generative AI's impact on driving the demand and innovation in chip sector, indicating future growth potential amidst technological advancements."
Ambiq Micro’s looming U.S IPO announcement marks a remarkable juncture, as generative AI elevates demand for specialized chipsets to new heights.
The decision by Ambiq Micro to file for a U.S IPO, amidst the generative AI boom that pushes up demand in chips and sensors worldwide reveals potential opportunities aligned with our future-focused economy."
