Key Takeaways:
Ambiq Micro reported second-quarter net sales of $33.9 million, up 89.7% year over year and beating consensus by $2.39 million.
"Demand for edge AI is far exceeding our expectations and those of our customers," Chief Executive Officer Fumihide Esaka said on a call with analysts.
Non-GAAP gross margin widened 450 basis points to 47.2%, while the non-GAAP net loss narrowed to $1.8 million, or $0.07 a share, from $5.9 million a year earlier and beat estimates by $0.19. Revenue from customers outside the three largest accounts grew 143%, and Apollo V product-line sales more than doubled.
The Austin, Texas-based chipmaker guided third-quarter sales of $36 million to $37 million, roughly 100% growth, and about $135 million for the full year. Esaka said tight capacity across wafers, packaging, substrates and testing is limiting the company's ability to fill all orders, with some customers' preorders running three to five times their initial expectations.
The results mark Ambiq's fifth consecutive quarter of sequential growth, driven by accelerating demand for on-device artificial intelligence in wearables, medical, industrial and smart-home devices. Sales to customers in China reached 14% of total net sales, up from 12% a year earlier.
The company raised about $168 million in net proceeds from an upsized follow-on offering in June, bringing total proceeds from two 2026 offerings to $243 million. It ended the quarter with $366.8 million in cash and no debt, funding development of the Atomiq 110 and Apollo 340 chips, both targeted for customer sampling in early 2027 with a meaningful Atomiq revenue ramp expected in 2028.
Non-GAAP research and development spending rose 55.5% to $11.2 million, driven by intellectual-property licensing and personnel expansion, while selling, general and administrative costs climbed 23.7% to $8.2 million. The company expects full-year operating expenses of about $85 million, including $7 million to $10 million of IP purchases.
Ambiq also announced a dual listing on the Singapore Exchange Main Board under the ticker AMQ to broaden its investor base across Asia. Management expects revenue from medical and industrial sectors to more than double in 2026, with nonwearable applications representing about 25% of new designs targeted for 2027 launches.
The raised guidance shows management expects edge AI demand to keep accelerating even as supply constraints cap near-term shipments. Investors will watch the third-quarter report for progress on securing additional foundry and OSAT capacity and the early-2027 sampling of the Atomiq 110 and Apollo 340.
This article is for informational purposes only and does not constitute investment advice.
