This AI Semiconductor Stock Beat the S&P 500 by 9 Points. A Fund Just Exited Completely
Key Points
S Squared Technology sold 128,551 Ambarella shares in the first quarter; the estimated transaction value is $8.02 million based on the quarter’s average price.
The Ambarella position’s quarter-end value decreased by $9.11 million, reflecting both trading activity and share price changes.
The transaction represents a 3.03% change in the fund’s 13F reportable assets under management (AUM).
The Ambarella stake was previously 3.5% of fund AUM as of the prior quarter, marking a complete exit from a notable holding.
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On May 14, 2026, S Squared Technology disclosed a complete sale of its Ambarella (NASDAQ:AMBA) position, an estimated $8.02 million trade based on quarterly average pricing.
What happened
According to a recent SEC filing dated May 14, 2026, S Squared Technology sold its entire holding of 128,551 Ambarella shares during the first quarter. The estimated transaction value is $8.02 million, based on the average closing price for the quarter ending March 31, 2026. The position’s quarter-end value declined by $9.11 million, a change that reflects both the sale and price movement during the period.
What else to know
- Top holdings after the filing:
- NASDAQ: LSCC: $31.72 million (12.0% of AUM)
- NASDAQ: KRYS: $22.27 million (8.4% of AUM)
- NASDAQ: SYM: $19.64 million (7.4% of AUM)
- NASDAQ: IPGP: $17.64 million (6.7% of AUM)
- NYSE: PRLB: $16.88 million (6.4% of AUM)
- As of May 13, 2026, Ambarella shares were priced at $82.10, up 35% over the past year and outperforming the S&P 500 by 9 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 13, 2026) | $82.10 |
| Market Capitalization | $3.55 billion |
| Revenue (TTM) | $390.70 million |
| Net Income (TTM) | ($75.86 million) |
Company snapshot
- Ambarella develops advanced semiconductor solutions, including system-on-a-chip products for HD and ultra HD video compression, image processing, and AI-based computer vision, serving applications in automotive cameras, security cameras, robotics, and consumer electronics.
- The firm generates revenue primarily by selling integrated chip solutions to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) through direct sales and distribution channels.
- It targets global automotive, security, robotics, and consumer electronics markets, with a focus on OEMs and ODMs requiring high-performance video and AI processing capabilities.
Ambarella is a leading provider of semiconductor solutions specializing in video processing and artificial intelligence for a diverse range of applications, including automotive, security, and robotics. The company leverages proprietary system-on-a-chip technology to deliver high-quality video, advanced image processing, and efficient AI workloads at low power consumption. Ambarella's strategy centers on enabling next-generation intelligent cameras and autonomous systems, positioning it as a key technology partner for OEMs seeking innovation in video and vision-based products.
What this transaction means for investors
It seems S Squared might’ve decided to lock in gains and allocate capital elsewhere after a strong run in AI-related semiconductor names, but Ambarella is still showing real operating momentum underneath the volatility.
In February, the company reported record fiscal 2026 revenue of $390.7 million, up 37% year over year, while fourth-quarter revenue climbed 20% to $100.9 million. Ambarella also swung to a full-year non-GAAP profit of $26.9 million after posting a loss the prior year.
Management has been aggressively positioning the company around edge AI, saying AI-focused chips now make up 80% of revenue. The company also highlighted more than 370 customer AI projects already in production and roughly $1 billion in cumulative edge AI revenue. For long-term investors, the bigger question, however, is whether Ambarella can turn its AI leadership into sustained profitability. The technology story is clearly improving, but at this stage, expectations are rising just as fast as the business itself.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Krystal Biotech and Symbotic. The Motley Fool recommends IPG Photonics and Proto Labs. The Motley Fool has a disclosure policy.
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