Ambarella posted strong third-quarter results
Ambarella Inc (NASDAQ:AMBA) stock is gapping to 52-week highs, up 15.4% at $78.96 at last glance, after the semiconductor name's better-than-expected third-quarter results and current-quarter revenue forecast. CEO Fermi Wang attributed the success to strong sales from its Edge AI product, which he said represents roughly 70% of the company's total top line. Plus, a flood of analysts lifted their price targets on AMBA after the event.
Should this positive price action hold, Ambarella stock will notch its best day since its May 31 earnings surge of 20.6%. The equity is also eyeing its eighth-straight daily gain, and fourth consecutive post-earnings pop. Year to date, AMBA is up 26.6%.
Over in the options pits, the chip stock has seen 5,846 calls and 3,785 puts exchanged so far, which is six times the average daily options volume already. The weekly 11/29 80-strike call is the most popular, with new positions being sold to open there.
Options traders were much more bullish than usual leading up to today's event. AMBA's 50-day call/put volume ratio of 5.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 95% of readings from the past year.