Ambiq Micro should continue gaining ground thanks to demand for its ultra high efficiency chips used in wearable AI products, but investors are largely ignoring another part of its business that’s likely to drive the stock even higher, according to Jefferies. The investment bank began research coverage of Ambiq with a buy rating and $90 price target, 42% above where the stock closed Tuesday. Ambiq makes hardware, including systems-on-chips (SoCs) and ultra-low-power platform solutions, for wearable devices equipped with artificial intelligence-powered features. But Ambiq is also embracing an AI compute business that should also add value, Jefferies said. “AMBQ is moving from a niche ultra-low-power [microcontroller unit] supplier toward an edge AI compute platform,” Jefferies analyst Kevin Garrigan wrote Tuesday in a note to clients. “The market still prices AMBQ on its historical wearable concentration, which we think leaves attractive risk/reward.” Jefferies expects Ambiq to increase its revenue at a compound annual growth rate of 51%between fiscal 2025 and 2028. The company is likely to break even on an operating basis in 2028, the bank said. The recommendation matches the Wall Street consensus, where five of seven analysts rate Ambiq Micro a buy or strong buy, with two holds, LSEG data shows. Ambiq came public in July 2025 at $24 a share in an IPO led by BofA, UBS, Needham and Stifel. Shares have surged roughly 122% year to date.
