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The company topped analyst estimates for its third-quarter earnings and its shares have since witnessed an unabated price rally. The company reported adjusted earnings of $0.57 per share for the quarter, beating the consensus estimate by 16.2%. Its $92.17 million in revenue surpassed the consensus estimate by 2%. AMBA’s shares jumped 25% in price last week. CEO Fermi Wang attributed the company’s improved earnings to its high-margin “transition into a deep learning AIoT processing company.”
Though the company’s operational execution remains solid, semiconductor supply dynamics remain challenging, and component shortages at other companies could significantly influence AMBA’s performance in the coming months.
