11:07 AM EDT, 08/25/2025 (MT Newswires) -- Ambiq Micro's ( AMBQ ) differentiated technology allows for substantially reduced power usage, providing it with a competitive advantage in wearables, where its customers include Alphabet (GOOG), Garmin ( GRMN ) , and WHOOP, UBS Securities said in a note Monday.

The firm expects revenues to grow at more than a 30% CAGR in the coming years but does not anticipate the company turning profitable before 2028, dependent on the successful rollout of its next-generation Atomiq chip.

Ambiq's total addressable market is projected to grow from roughly $8 billion in 2025 to about $23 billion by 2028, encompassing wearables, healthcare, industrial edge applications, automotive, and data centers, the report added.

According to the report, UBS expects 1-2 production design announcements in 2026-2027 as key milestones, though the company is currently burning about $2.5 million per month and will likely need another capital raise.

The firm has initiated a neutral rating on the stock and a price target of $40.

Shares of the company were down 1.1% in recent trading.

Price: 38.03, Change: -0.44, Percent Change: -1.14