Bank of America Securities analyst Vivek Arya reiterated a Hold rating on Ambiq Micro, Inc. today and set a price target of $42.00.
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Vivek Arya’s rating is based on a combination of factors that highlight both the potential and the risks associated with Ambiq Micro, Inc. The company has shown a promising start as a public entity, with strong design win activity and a significant presence in the edge-AI market. Their proprietary SPOT technology has enabled a substantial number of devices, and recent financial results have been positive, driven by a richer product mix and increased customer demand.
However, Arya remains cautious due to several risk factors. Ambiq Micro’s high customer concentration, with top customers like Garmin and Google accounting for a significant portion of revenues, poses a risk. Additionally, the company faces high operational expenses needed to develop their next-generation platform, which could delay profitability beyond FY28. The competitive nature of the consumer semiconductor market and potential delays in customer roadmaps further contribute to the uncertainty, justifying the Hold rating.
In another report released today, UBS also reiterated a Hold rating on the stock with a $40.00 price target.