Ambiq Micro:UBS Initiates Neutral Coverage, Sets $40 Price Target

Ambiq Micro:UBS Initiates Neutral Coverage, Sets $40 Price Target

Investment bank UBS has initiated coverage on Ambiq Micro Inc (NYSE: AMBQ) with a Neutral rating and a $40.00 price target, reflecting valuation concerns. The company, valued at $670 million and trading at $38.47, is known for its intellectual property that enables workloads to run at significantly lower power consumption, making it valuable in the wearables market and potentially applicable to medical, industrial edge, smart home, automotive, and data center sectors.

UBS highlighted Ambiq’s strong financial position, with a healthy current ratio of 5.61 and more cash than debt on its balance sheet. The company is expected to become profitable by 2028, contingent on the successful launch of its Atomiq product, which won’t begin sampling until the first half of 2027. The Atomiq product is set to expand Ambiq’s artificial intelligence applications, potentially growing its total addressable market from approximately $8 billion in 2025 to around $23 billion by 2028.

Despite the promising technology and growth potential, UBS considers the stock fully valued compared to peers. The investment bank suggests further execution on Ambiq’s product roadmap will be necessary to drive the stock price higher. Additionally, Ambiq Micro recently completed its initial public offering, raising $110.4 million before expenses by selling 4.6 million shares at $24 each. Stifel initiated coverage on Ambiq Micro with a Buy rating and a $45.00 price target, citing the company’s proprietary SPOT platform as a key factor.

References:
[1] https://www.investing.com/news/analyst-ratings/ambiq-micro-stock-initiated-at-neutral-by-ubs-citing-valuation-concerns-93CH-4208162
[2] https://www.ainvest.com/news/ubs-maintains-neutral-rating-lowers-price-target-range-resources-40-2508/