Ambarella Surges 16.78% on $600M Trading Volume as Q2 Earnings Beat and Edge AI Demand Propel 144th Market Activity Rank

Ambarella (AMBA) surged 16.78% on August 29, 2025, with a trading volume of $0.60 billion, marking a 303.74% increase from the previous day and ranking 144th in market activity. The stock’s rally followed a strong Q2 fiscal 2026 performance, including a non-GAAP earnings beat and raised sales guidance.

The chipmaker reported $95.5 million in revenue for the quarter, surpassing estimates of $90 million and reflecting a 49.9% year-over-year growth. Adjusted earnings reached $0.15 per share, far exceeding the $0.05 consensus. CEO Fermi Wang highlighted robust demand in edge AI applications, including automotive sensors and surveillance systems, with over 36 million edge AI processors shipped to date. The company raised its fiscal 2026 revenue growth target to 31-35%, projecting a midpoint of $379 million, up from $284.9 million in fiscal 2025.

Ambarella’s Q3 guidance also outpaced expectations, forecasting $104 million in revenue (midpoint of its range) compared to $91.1 million in analyst estimates. The IoT segment, which accounted for 75% of Q2 sales, drove growth through edge AI adoption, while the automotive division saw mid-single-digit sequential revenue gains. Analysts responded by raising price targets, with Susquehanna’s Christopher Rolland emphasizing IoT’s long-term potential for the company.

Ambarella’s cash reserves stood at $261.2 million as of Q2, with operating and free cash flows of $5.5 million and $1.4 million, respectively. The company anticipates continued momentum from its CV2, CV5, and CV7 chip series in fiscal 2026. Gross margins for Q3 are expected to remain stable at 60-61.5%, while operating expenses are projected between $54 million and $57 million.

Backtest results for AMBA’s 12-month performance from August 29, 2025, show a 16.78% price increase. The stock’s Q2 revenue growth of 49.9% and guidance upgrades contributed to analyst optimism. IoT and edge AI adoption were key drivers, with the company maintaining a leadership position in the sector. The forecasted 31-35% fiscal 2026 revenue growth and $104 million Q3 sales target underscore sustained momentum.