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By Andrew Kessel
Ambarella shares rallied Tuesday after Bloomberg reported the company is considering a sale.
Possible buyers could include rivals in the semiconductor industry or a private equity firm, the report said.
In Ambarella’s fiscal 2025, the company reported revenue of $284.9 million.
Ambarella (AMBA) shares surged just over 20% Tuesday after Bloomberg reported the company is considering a sale.
Ambarella, which designs image-processing semiconductors for security and self-driving vehicles, has reached out to potential buyers, according to Bloomberg. Potential bids could come from a rival chipmaker or a private equity firm, although a deal may not necessarily materialize, the report said, citing people familiar with the matter.
In Ambarella’s fiscal 2025, which ran through January, the company reported revenue of $284.9 million and posted an adjusted net loss of $6.8 million. Analysts expect close to $350 million in revenue this fiscal year and for the company to swing to a profit of $4.2 million on an adjusted basis, according to estimates compiled by Visible Alpha.
Even with Tuesday's gains, Ambarella shares have lost about 15% of their value in 2025.
Source: Investopedia