Ambarella stock soars 18% on earnings beat, sunny forecast

By Paul Ziobro

Shares of Ambarella (AMBA) soared after the semiconductor design company posted better-than-expected second-quarter results and projected revenue growth well above Wall Street expectations.

The stock rose 18%, to $62.50, in after-hours trading after closing the regular trading session at $52.79. The stock had been down 14% this year.

The Santa Clara, Calif., company reported a wider loss for the second quarter, although its adjusted loss was narrower than Wall Street analysts expected. Revenue growth of about 3% also topped expectations.

It forecast a roughly 27% jump in revenue for the current quarter to between $77 million and $81 million. Analysts were looking for $69 million.

Chief Executive Fermi Wang said the company is benefiting as revenue ramps up from certain customers and that the growth of artificial intelligence will boost its business.

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08-27-24 1838ET

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