SANTA CLARA, Calif. - Ambarella, Inc. (NASDAQ: NASDAQ:AMBA) saw its shares surge 27% after the edge AI semiconductor company reported better-than-expected third quarter results and provided an upbeat outlook.
The company posted adjusted earnings per share of $0.11 for Q3, surpassing analyst estimates of $0.03. Revenue came in at $82.7 million, up 63% YoY and above the consensus forecast of $79.01 million.
Ambarella's Q3 performance was driven by strong demand for its AI inference processors, with edge AI revenue representing about 70% of total revenue - a new record level for the company.
Looking ahead, Ambarella provided Q4 revenue guidance of $76-80 million, significantly higher than analyst expectations of $55.07 million. The company expects non-GAAP gross margin between 61.5% and 63.0% for the quarter.
"Company specific factors are more than offsetting broad market weakness, and we are reporting 30% sequential revenue growth in fiscal Q3, above the high-end of our guidance range," said Fermi Wang, President and CEO of Ambarella. "This momentum is expected to enable growth in both our IoT and Auto markets in F2025 and F2026."
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