Should you buy Ambiq (AMBQ) at its IPO price before it rockets like other AI semiconductor stocks?

**Ambiq Micro (AMBQ) is not a compelling buy at its IPO price of $24**, and here's why: 1. **Valuation Concerns**: Ambiq's closing price on its first day of trading was $38.53, a 61% increase from the IPO price. This significant surge suggests that the market may have already priced in future growth expectations, leaving little room for upside potential at the IPO price. 2. **Financial Performance**: Ambiq posted a net loss of $8.3 million against revenues of $15.7 million for the three months ended March 31, 2025. While the company showed an improvement from the previous quarter, it still operates at a loss and may not be profitable in the near term. 3. **Market Sentiment and Competition**: The AI semiconductor market is highly competitive, and Ambiq faces challenges from established players like Nvidia, AMD, and Broadcom. The company's technology focuses on energy-efficient chips, which are crucial for AI applications, but it faces strong competition and may not be able to capture a significant market share. 4. **Long-Term Growth Prospects**: Ambiq's long-term strategy involves expanding beyond battery-powered devices into markets such as vehicles and robots. While this sounds promising, it is still uncertain how quickly the company can execute on this strategy and how it will perform in new markets. 5. **Current Valuation vs. Future Prospects**: Morgan Stanley has raised price targets for other AI semiconductor stocks, indicating strong enthusiasm for the sector. However, Ambiq's current valuation and the rapid increase in its stock price following the IPO suggest that the market may have already priced in future growth expectations. In conclusion, while Ambiq is a promising company with innovative technology, its current stock price reflects the high expectations and competitive pressures in the AI semiconductor market. Investors should exercise caution and consider the risks before buying at the IPO price. It may be more prudent to wait for a pullback or further evaluate the company's performance before making a buying decision.