Ambarella Stock Climbs 20% After Q2 Beat and Bullish Edge-AI Guidance

Aug 29 - Shares of Ambarella AMBA rallied about 20% on Friday morning after a second-quarter beat that reinforced its edge-AI momentum and pushed guidance higher.

The chip designer reported revenue of $95.5 million, up nearly 50% year-over-year, and posted adjusted earnings of $0.15 per share, beating the Street. The company still logged a GAAP net loss of $20.0 million (a $0.47 loss per share), an improvement from last year's wider loss.

Management told investors it expects third-quarter revenue between $100 million and $108 million and raised its fiscal-year revenue growth outlook to 31%35%, implying a midpoint near $379 million.

CEO Fermi Wang pointed to strength across portable video, drones and edge infrastructure as demand drivers. Traders cheered the combination of stronger results and bullish guidance: Ambarella shares jumped roughly 20% in extended trading after the release.

The beat helps emphasize how swiftly edge AI pull-through can tip sentiment. Ambarella continues to balance an enhanced non-GAAP profitability against GAAP losses as the transition progresses.