Critical Review: Ambiq Micro (AMBQ) versus The Competition

Ambiq Micro (NYSE:AMBQ) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Ambiq Micro to related businesses based on the strength of its dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Risk & Volatility

Ambiq Micro has a beta of 5.66, meaning that its stock price is 466% more volatile than the S&P 500. Comparatively, Ambiq Micro’s peers have a beta of 2.81, meaning that their average stock price is 181% more volatile than the S&P 500.

Institutional & Insider Ownership

54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 10.0% of Ambiq Micro shares are held by insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Ambiq Micro and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambiq Micro	1	4	5	0	2.40
Ambiq Micro Competitors	3513	12392	25843	1004	2.57

Ambiq Micro currently has a consensus price target of $71.14, suggesting a potential upside of 45.87%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 37.48%. Given Ambiq Micro’s higher possible upside, analysts clearly believe Ambiq Micro is more favorable than its peers.

Valuation & Earnings

This table compares Ambiq Micro and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ambiq Micro	$72.51 million	-$36.46 million	-28.86
Ambiq Micro Competitors	$7.35 billion	$2.53 billion	19.96

Ambiq Micro’s peers have higher revenue and earnings than Ambiq Micro. Ambiq Micro is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Ambiq Micro and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambiq Micro	-29.72%	-9.27%	-8.52%
Ambiq Micro Competitors	-1,255.36%	-126.08%	-3.83%

Summary

Ambiq Micro peers beat Ambiq Micro on 8 of the 12 factors compared.

About Ambiq Micro

Ambiq Micro is a semiconductor company that develops ultra-low-power systems-on-chip and related technology for battery-powered devices. Its products are designed to help devices process data while using less energy, supporting applications that require extended battery life. The company’s offerings include Apollo microcontroller and system-on-chip products, along with software and development tools. Ambiq’s Subthreshold Power Optimized Technology (SPOT) is designed to reduce power consumption, including in devices that run artificial intelligence workloads at the edge.