Ambarella stock pops 23% on strong quarterly results

Ambarella (AMBA.US) stock surges more than 23.0% after the maker of chips for cars and cameras, which counts GoPro amongst others as customers, posted better than expected quarterly figures. Company reported quarterly earnings of 35 cents per share well above market expectations of 25 cents per share. Revenue of $79.3 million topped Wall Street expectations of $75.7 million. Ambarella confirmed that demand is high and that revenue could hit a five-year high this quarter. Chief Executive Fermi Wang credited the strong showing to its chips for security cameras and cars, which he said accounted for 90% of total revenue in the second quarter. “While the significant industry wide supply-chain challenges persist, we expect F2022 to represent a major inflection in our business, and we are excited about our future,” Wang said, referring to a continuing semiconductor shortage.

Ambarella (AMBA.US) stock launched today’s session with a big bullish price gap and is currently testing major resistance at $128.70 which is marked with the previous price reactions. Should a break higher occur, then the all-time high at $136.04 may be at risk. On the other hand, if sellers will manage to regain control, then downward correction towards support at $117.90 may be launched. Source: xStation5