S Squared Technology Fully Sells Ambarella Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: Fool
- Complete Stake Sale: S Squared Technology disclosed the complete sale of its 128,551 shares of Ambarella in Q1 2026, with an estimated transaction value of $8.02 million, reflecting the company's strategic capital allocation in the AI semiconductor sector.
- Quarter-End Value Decline: The sale resulted in a $9.11 million decline in the quarter-end value of Ambarella holdings, indicating the impact of market volatility on the investment portfolio while suggesting the company may seek other investment opportunities after locking in gains.
- Strong Performance: Ambarella reported record fiscal 2026 revenue of $390.7 million, a 37% year-over-year increase, with fourth-quarter revenue climbing by $20.9 million, showcasing its robust growth potential in video processing and AI sectors.
- AI Strategic Shift: Ambarella's management noted that AI-focused chips now account for 80% of its revenue, with over 370 customer AI projects already in production, highlighting the company's leadership position in the edge AI market and its potential for future profitability.
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Analyst Views on AMBA
Wall Street analysts forecast AMBA stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 91.840
Low
80.00
Averages
96.70
High
115.00
Current: 91.840
Low
80.00
Averages
96.70
High
115.00
About AMBA
Ambarella, Inc. is a developer of low-power system-on-a-chip (SoC) semiconductors and software for edge artificial intelligence (AI) applications. The Company's technologies make electronic systems smarter, enabling them to become partially or fully autonomous with features, such as person detection, object classification, and analytics, in addition to performing complex data analysis in real time, delivering imagery, and preserving vital system resources, such as power and network bandwidth. It specializes in the development of deployable, scalable designs for intelligent electronic systems that utilize high-bandwidth sensors. Its products are used in a variety of human viewing, computer vision and edge AI applications, including a variety of automotive camera systems, video security cameras, mobile and fixed robots, industrial applications, and consumer devices, such as action, drone, and 360-degree cameras.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Agreement: The company signed a long-term agreement with South Korea's Hanwha, expected to generate over $800 million in potential revenue over more than 10 years, which will provide a more predictable revenue stream and enhance market competitiveness.
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