Ambiq Micro, Inc. (AMBQ) Stock Jumps 16.3%: Will It Continue to Soar?

Ambiq Micro, Inc. AMBQ shares soared 16.3% in the last trading session to close at $44.18. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.9% gain over the past four weeks.

The optimism surrounding the stock can be attributed to THE accelerating edge AI adoption, growing wearable demand, expanding industrial and medical applications, Apollo5 migration, new customer ramps, and strong ultra-low-power technology differentiation driving sustained growth

This company is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of +98.1%. Revenues are expected to be $21.5 million, up 36.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ambiq Micro, Inc., the consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AMBQ going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ambiq Micro, Inc. belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, QuickLogic QUIK, closed the last trading session 13.3% higher at $19.89. Over the past month, QUIK has returned 62.6%.

For QuickLogic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. This represents a change of +14.3% from what the company reported a year ago. QuickLogic currently has a Zacks Rank of #3 (Hold).

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research