Ambiq Micro Inc (AMBQ) PT Raised to $75 at BofA Securities

BofA Securities analyst Vivek Arya raised the price target on Ambiq Micro Inc (NYSE: AMBQ) to $75.00 (from $70.00) while maintaining a Underperform rating.

The analyst comments "AMBQ’s 2Q beat/raise reinforces our view that low-power edge-AI adoption is translating into broad, unit-led growth, with demand now exceeding available supply across wafers, packaging, substrates and test. Roughly 80-90% of AMBQ’s growth is driven by unit growth, with strong supply chain relationships (TSMC is a leading shareholder) to support surging edge-AI demand into FY27E. In 2Q, Apollo3/4 grew double digits and Apollo5 more than doubled, with lean channel inventory, expedites and orders above customer forecasts evidence of accelerating end consumption. Improving mix and strong pricing power drove 2Q pf-GM 47.2% (~166bps above cons) with ~47% FY26E pf-GMs now expected to land well ahead of previous 45%-46% commentary. Despite the strong execution, we reiterate Neutral given AMBQ’s relatively small scale, sensitivity to supply chain disruptions, and customer concentration ahead of FY28E Atomiq ramp that is expected to provide meaningful revenue. All in, we raise FY27/28E sales +19%/+20% with first quarter of non-GAA profit now expected in 3Q27 as we raise PO to $75 (from $70) on 7x CY28E EV/S (9x CY27E prior), ahead of 6x peer average, justified by AMBQ’s superior 32% CY26-28E sales CAGR vs. peer average 17%."

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