Why This Tech Fund Made a $5.8 Million Bet on an AI Chip Stock Up Nearly 200% Post-IPO
Key Points
S Squared Technology initiated 192,773 shares of Ambiq Micro in the first quarter; the estimated trade size was $5.75 million based on quarterly average pricing.
The quarter-end stake value increased by $4.90 million, reflecting both trading activity and stock price movement.
The transaction represented a 2.18% change in S Squared Technology’s 13F reportable assets under management.
Ambiq Micro is a new holding and makes up 1.85% of S Squared Technology’s 13F assets.
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On May 14, 2026, S Squared Technology disclosed a new position in Ambiq Micro (NYSE:AMBQ), acquiring 192,773 shares in the first quarter. The estimated transaction value was $5.75 million based on quarterly average pricing.
What happened
According to a SEC filing dated May 14, 2026, S Squared Technology acquired 192,773 shares of Ambiq Micro (NYSE:AMBQ) during the first quarter of 2026. The estimated transaction value was $5.75 million, calculated from average closing prices over the quarter. The new position was valued at $4.90 million at quarter-end, reflecting both the purchase and stock 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 the end of the quarter, Ambiq Micro shares were priced at $71.29, nearly tripling from a July IPO price of $24 per share.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 14, 2026) | $71.29 |
| Market capitalization | $1.57 billion |
| Revenue (TTM) | $72.5 million |
| Net income (TTM) | ($36.5 million) |
Company snapshot
- Ambiq Micro develops ultra-low-power integrated circuits, including real-time clocks and microcontrollers for wearables, smart cards, wireless sensors, and IoT devices
- The firm generates revenue through the sale of proprietary semiconductor products and technical support services, leveraging subthreshold power-optimized technology and AI acceleration solutions
- Primary customers include manufacturers and developers in the wearables, edge AI, and IoT sectors seeking energy-efficient hardware solutions
Ambiq Micro is a semiconductor company specializing in ultra-low-power solutions for power-sensitive applications, with a focus on edge AI and IoT markets. The company differentiates itself through proprietary technology that enables significant energy savings in connected devices. With a global presence and a strong emphasis on innovation, Ambiq targets high-growth segments demanding efficient, high-performance integrated circuits.
What this transaction means for investors
Ambiq’s latest earnings report showed why a fund like S Square would be leaning in right now, even as shares skyrocket following the firm’s July IPO. First-quarter net sales climbed 59% year over year to $25.1 million, while management guided for second-quarter revenue of as much as $32 million. Gross margin also improved sequentially to 43.5% as manufacturing efficiencies helped offset broader industry cost pressures.
Management touted the firm’s “exceptional momentum” and said more than 80% of units shipped are now running AI algorithms, highlighting how quickly the company is pivoting toward edge AI applications. Ambiq also pointed to expanding customer diversification, with reliance on its top three customers falling to 71% of net sales from 86% a year ago.
Ultimately, the opportunity here is obvious, and as you might expect, so is the risk. Ambiq is growing fast, yet it remains unprofitable and trades like a company investors expect to dominate a major AI hardware niche.
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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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