Ambiq Micro, Inc. Q3 2026 Earnings Call Summary Moby Intelligence Tue, November 10, 2026 at 12:45 PM EST 4 min read NVDA -6.48% AMBQ -4.70% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Net sales growth of 110% year-over-year was driven by a fundamental market shift toward edge AI adoption, which requires the increasingly sophisticated, ultra-low power compute capabilities provided by the SPOT platform.
Performance was bolstered by a broad-based increase in both volume and ASP, reflecting strong end-user response to new customer product launches in smartwatches, displayless bands, and smart rings.
The company successfully scaled its customer base, with seven customers generating over $1 million in quarterly sales compared to three in the prior year, alongside a 50% year-over-year increase in total active customers.
Management attributes the growth to underlying end-market consumption rather than inventory replenishment, citing lean channel inventory and continued customer requests for expedited shipments.
Strategic investments in software have resulted in the launch or enhancement of seven AI software products this year, including the first deployment of an Ambiq-developed AI model for a customer's voice-based use case.
Revenue diversification is progressing with non-wearable segments on track to double this year, though they currently represent a mid-single-digit percentage of total revenue due to longer design cycles in industrial and medical markets.
Strong supply chain relationships and visibility into customer forecasts allowed the company to secure necessary capacity despite a generally supply-constrained semiconductor environment.
Full-year 2026 net sales are expected to reach approximately $140 million, nearly doubling 2025 results and significantly exceeding the initial $100 million expectation set at the start of the year.
Non-wearable revenue is projected to remain in the mid-single digits as a percentage of total sales through 2027 before stepping up to low double digits in 2028 as industrial and medical design wins reach commercial scale.
The next-generation Atomiq110 platform is on track for tape-out by the end of 2026, with customer sampling expected to begin in the first quarter of 2027.
Management anticipates 2027 will be another year of strong growth, driven by a combination of unit volume increases and higher ASPs as customers transition to the more advanced Apollo5 product family.
The planned launch of the Apollo340 in 2027 is expected to further expand the addressable market within medical, industrial, and smart building sectors by offering a lower-cost, compact edge AI platform.
Sales to end customers in China rose to 17.3% of total net sales, up from 6.7% a year ago, driven by expansion within the existing high-value customer base in the region.
Non-GAAP gross margin expanded 390 basis points year-over-year to 48.7%, as manufacturing efficiencies and the value of the SPOT platform successfully offset higher supply chain input costs.
A new design win with a global physical security provider for an AI-enabled glass break sensor validates the company's integrated hardware and HELIA AI software strategy for infrastructure monitoring.
Operating expenses increased significantly year-over-year, reflecting necessary R&D investments for multiple concurrent product development programs including Atomiq and Apollo340.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
Management confirmed that while they are meeting most demand within reasonable lead times, some short-lead-time 'upside' demand in Q4 will remain unfilled due to capacity limits.
The company has utilized expedites to meet some urgent orders, though they noted this is a dynamic environment and depends heavily on the cooperation of supply chain partners.
Key growth areas include infrastructure monitoring, such as smart grid and building security, and digital health applications including EEG, Parkinson's detection, and blood glucose monitors.
Management highlighted a recent win in machine health monitoring using local AI models for anomaly detection as a 'bellwether' for broader industrial opportunities.
The first sale of an Ambiq-developed AI model is considered a significant milestone that could become a meaningful revenue contributor over time.
This software-led strategy specifically targets customers in non-wearable markets who may lack the extensive in-house AI development resources of Ambiq's largest wearable customers.
Growth in 2027 is expected to be a healthy mixture of quantity increases and higher ASPs as the product mix shifts toward the Apollo5 family.
Management expressed high optimism for 2027 based on current customer projections and the adoption of new platforms by both existing and new customers.
