July 31 (Reuters) - NXP Semiconductors ( NXPI ) is in talks to buy chip designer Ambarella ( AMBA ), the Financial Times reported on Friday, citing people familiar with the matter. 

Shares of Ambarella ( AMBA ), with a market capitalization of $3.25 billion, jumped nearly 17%, while NXP fell over 3% following the report.

Here are a few details:

-- A potential deal could bolster NXP's capabilities in software-defined vehicles, radar and electrification, as Ambarella ( AMBA ) develops low-power AI chips and software for edge devices such as cameras, vehicles and robotics.

-- Discussions are ongoing and might not lead to a transaction, FT said.

-- NXP and Ambarella ( AMBA ) did not immediately respond to Reuters' requests for comment.

-- The development comes after NXP forecast quarterly revenue above analysts' estimates on Tuesday, signaling strong demand for its chips in automotive, industrial and data-center markets.