Chip design company Ambiq Micro disclosed in its U.S. initial public offering (IPO) application on Thursday that net sales increased by 16.1% in 2024, driven by the increasing demand for semiconductor technology from generative AI. As investors refocus on high-growth tech startups, strong demand for AI-related stocks is driving a recovery in the IPO market.
Ambiq Micro, based in Austin, Texas, reported a net loss of $39.7 million in 2024, which narrowed compared to $50.3 million in the same period in 2023. The company's net sales reached $76.1 million in 2024, representing a 16.1% increase year-over-year. Although Ambiq has experienced strong sales growth from collaborations with major clients such as Google and Huawei in recent years, it also faces high customer concentration risks, and over-reliance on a few major customers could affect its future development.
Ambiq Micro plans to use the funds raised through the IPO for general corporate purposes, including working capital, sales and marketing activities, and product development. With the rapid adoption of generative AI applications across industries, analysts expect companies related to AI to drive the next wave of tech IPOs. Ambiq Micro plans to list on the New York Stock Exchange with the stock code "AMBQ," joining a wave of chip design companies closely associated with the AI boom.
Founded in 2010, Ambiq Micro focuses on ultra-low-power semiconductor solutions to address power consumption challenges in general computing and AI computing. The company holds a favorable position in the "edge AI" field, with its ultra-low-power chips reducing power consumption by 2 to 5 times, giving it a competitive advantage in the rapidly growing wearable device market. As most AI computing requires significant power, the demand for energy-efficient chips continues to grow, prompting companies to transition toward low-power designs.
BofA Securities and UBS are the lead underwriters for this offering.
Key points:
🌟 Ambiq Micro reported a 16.1% increase in net sales in 2024, reaching $76.1 million, in its IPO filing.
📉 Despite achieving sales growth, the company still incurred a net loss of $39.7 million in 2024 and faces risks of customer concentration.
🔌 The company focuses on ultra-low-power semiconductors, targeting the "edge AI" market to meet the demand for high-efficiency chips.