How to Invest in Ambiq Micro (AMBQ)

How to buy Ambiq Micro stock

Because Ambiq Micro is a publicly traded company, you can buy shares as easily as you would any other U.S.-listed stock. If you're interested in snagging a few shares of the company, here's your step-by-step guide for how to buy Ambiq Micro stock.

1. Open your brokerage account: Log into your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in Ambiq Micro stock?

There are many reasons to consider an investment in Ambiq Micro stock, especially if you're a long-term investor with a well-diversified portfolio, a sufficient time horizon, and ample risk tolerance. Ambiq Micro specializes in designing chips that consume significantly less power than traditional semiconductors. This is crucial for the growing edge AI market, where devices like wearables require extended battery life for on-device AI tasks.

The edge AI market is projected to grow substantially, a trend that is being driven by the increasing need for real-time data processing in devices such as smartwatches, fitness trackers, and industrial sensors. Ambiq aims to expand beyond battery-powered devices and target other AI applications like high-performance computing, data centers, and the automotive sector. Management also sees significant growth potential stemming from the burgeoning smart glasses market, since smart glasses require small, energy-efficient chips to handle computationally intensive tasks like speech and image recognition.

Ambiq's patented SPOT platform, which yields superior energy efficiency for AI workloads compared to conventional designs, offers a significant competitive advantage for the company in the ultra-low-power computing space. The company plans to license their SPOT technology to other semiconductor suppliers.

There are some notable risks to consider too. A substantial portion of Ambiq's revenue still comes from a limited number of customers, including Garmin (GRMN +0.89%), Huawei, and Alphabet (GOOG -2.21%)(GOOGL -2.37%). Ambiq Micro is working to reduce its reliance on Chinese customers, a market that has historically been instrumental to the business. In 2024, 50% of Ambiq Micro’s sales came from China, with Huawei Technologies accounting for 41% of net sales.

By the first quarter of 2025, sales to end customers in mainland China had declined to 6% of net sales, but that also had affected overall growth for the business. While Ambiq's full-year revenue in 2024 increased by 16% to $76.1 million, Q1 2025 revenue growth came to just 3% at $15.7 million. Sales in the U.S., Europe, and Asia (excluding mainland China) have shown strength, but the transition to new core markets will take time.

Ambiq also relies heavily on Taiwan Semiconductor Manufacturing Co. (NASDAQ:TSM) for chip fabrication (as many companies in this space do), but its reliance on a third party exposes it to potential supply chain disruptions in the future. Investors who are not willing to take on these risks may do well to look elsewhere.

Is Ambiq Micro stock profitable?

No, Ambiq Micro is not currently profitable. While the company is experiencing revenue growth and improving its losses, it delivered a net loss of $39.7 million in its fiscal 2024. It also reported a net loss of $8.3 million in the first quarter of the company’s fiscal 2025.

Does Ambiq Micro stock pay a dividend?

Ambiq Micro stock does not currently pay a dividend. Ambiq Micro has also never paid dividends in its company history, and management has not indicated current plans to do so.

ETFs with exposure to Ambiq Micro stock

Generally, new IPOs are not immediately included in traditional, broad-market exchange-traded funds (ETFs). Given its relatively recent IPO and small market capitalization (less than $1 billion at the time of this article), Ambiq Micro is likely to be included in ETFs that target small-cap companies in the future or certain semiconductor-focused ETFs.

Will Ambiq Micro stock stock split?

As a newly public stock, there is no reason to think that Ambiq Micro will split its stock anytime soon.

The bottom line on Ambiq Micro stock

Although the company recently went public, Ambiq Micro has already generated significant interest among investors looking to capitalize on the growing field of edge AI and ultra-low-power semiconductors. The company specializes in chips that offer high performance with minimal energy consumption for a notable customer base, with a critical advantage in targeting makers of power-sensitive devices like wearables, smart cards, wireless sensors, and IoT (Internet of Things) products.

Ambiq's revenue is heavily concentrated among a few key customers, and achieving consistent profitability may take time amid fierce competition in a fragmented market. These are all factors for investors to consider before putting money to work and taking a slice of the action.

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