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Ambarella's Stock Pops 20% as the Chip Designer Reportedly Mulls a Sale.

stock :: 2025-06-25 :: source - investopedia

By Andrew Kessel

Even with Tuesday's gains, Ambarella shares have lost about 15% of their value in 2025. Cheng Xin / Getty Images

Key Takeaways

  • 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