Ambarella shares soar more than 20% on report chip designer is exploring sale

• Chip designer Ambarella has held talks with bankers and is considering a sale, according to a Bloomberg report.
• Sources told the news outlet that the company could draw interest from semiconductor firms looking to beef up their automotive business.
• The California-based company is known for its system-on-chip semiconductors and software used for edge artificial intelligence.

Ambarella shares popped 20.6% after a report that the chip designer is currently working with bankers on a potential sale. Shares also notched their best session since September 2021.

Bloomberg reported the news, citing sources familiar with the matter.

While no deal is imminent, the sources told Bloomberg that the firm may draw interest from semiconductor companies looking to improve their automotive business. Private equity firms have already expressed interest, according to the report.

• Meta is absent from SF Pride this year, as tech industry retreats from public support of LGBTQ+
• How war-torn Myanmar plays a critical role in China's rare earth dominance
• Amazon to invest £40 billion in the UK over next three years
• Tesla robotaxi incidents caught on camera in Austin draw regulators' attention

The Santa Clara, California-based company is known for its system-on-chip semiconductors and software used for edge artificial intelligence. Ambarella chips are used in the automotive sector for electronic mirrors and self-driving assistance systems.

Shares have slumped about 18% year to date. The company's market capitalization last stood at nearly $2.6 billion.

Read the Bloomberg story here.

• Berkshire shares drop double digits as 'Buffett premium' disappears, and some expect more selling
• Goldman says 'TINA trade' is alive and well, fueled by 401(k) buying
• Best stocks: Defense, including these 2 names, may be in secular bull market as global conflicts mount
• Goldman Sachs says buy these five stocks that are set to rally