Arm's invested AI chip company Ambiq surged 61% on its first day of trading, triggering two trading halts
Arm-invested AI chip company Ambiq surged 61% on its first day of trading on the New York Stock Exchange, triggering trading halts twice during the session. Ambiq issued 4 million shares, raising $96 million, attracting support from several well-known investment institutions. Its core technology focuses on ultra-low power semiconductors, aiming to apply AI computing capabilities to devices with limited power consumption. Despite the optimistic technological prospects, the customer base is relatively concentrated, and profitability will take time
AI chip company Ambiq, backed by Arm, surged on its first day of trading, triggering trading halts twice during the session.
On Wednesday, U.S. time, this AI company focused on ultra-low power semiconductor solutions officially listed on the New York Stock Exchange. Ambiq issued 4 million shares, raising a total of $96 million.
The IPO attracted support from many well-known investment institutions. In addition to Arm, Ambiq's investors include Kleiner Perkins, Singapore's state-owned investment agency EDB Investments Pte, VentureTech Alliance, and Conductive Ventures.
Ambiq's core technology aims to liberate AI computing power from energy-intensive data centers and bring it to terminal devices with extremely limited power consumption and battery life. At the close, Ambiq's share price was $38.7, up 61.25% from the IPO price of $24 per share, and trading was halted twice due to extreme volatility.
Focus on Low-Power Technology for Edge AI
Ambiq's core competitiveness lies in its ultra-low power semiconductor platform designed specifically for edge AI applications.
According to the documents submitted by the company, this platform promises to consume five times less energy than traditional chips.
This technological breakthrough makes it possible to deploy more complex AI functions on wearable products such as smartwatches and fitness trackers, which are extremely sensitive to power consumption, and whose AI potential has previously been severely constrained by battery life.
The company's Chief Technology Officer Scott Hanson stated:
Ambiq's true value lies in adding AI functions that were previously unattainable due to power consumption limitations while maintaining the same battery life.
He added:
Other potential applications of Ambiq technology may include embedding large language models in devices such as augmented reality (AR) and virtual reality (VR) glasses.
Losses Narrowed but Profitability Still Awaited
Despite the promising technological prospects, Ambiq's customer base is relatively concentrated.
Documents show that in the first quarter of this year, its largest customer (identity undisclosed) contributed 38% of revenue during that period. During the same period, terminal customers contributing over 10% to net sales included Garmin, Google, and another unnamed customer.
Additionally, in the first half of last year, mainland China contributed 45.5% of the company's sales, but according to preliminary sales data for the first half of this year, this proportion is only 8% to 9.5%.
From a financial perspective, Ambiq remains in a loss position. For the three months ending March 31 of this year, the company reported a net loss of $8.3 million, with revenue of $15.7 million In comparison, the net loss for the same period last year was USD 9.8 million, with revenue of USD 15.2 million.
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