Ambarella (AMBA -1.04%) shareholders beat a surging market in November as the stock jumped 43% compared to the 11% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally put the chipmaker in solidly positive territory for the year, up over 40% so far in 2020.
Investors celebrated Ambarella's third-quarter results that on Nov. 24 showed encouraging demand trends. While sales declined, the result was better than Wall Street expected and reflected a good reception of its latest AI and computer vision solutions. Ambarella's low-power video processing tech is finding its way into growing industries like automotive driving and security systems.
CEO Fermi Wang and his team issued a bullish outlook for the quarter ahead, and those comments sparked a wave of analyst upgrades to the stock. At the midpoint of its guidance, the forecast translates into a return to sales growth in the fourth quarter.
That success would mark just the first step in Ambarella's hopes to establish itself as something greater than just a niche player in the AI and Internet-of-Things industries that are dominated by tech titans like NVIDIA today.