<p><strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-red-900">1.03%</span>)</span> is the most valuable company in the world, with a market cap of $5.4 trillion. Demand for its leading chips has been through the roof, making the tech giant at the center of the artificial intelligence (AI) revolution that's currently taking place.</p>
<p>Some investors, however, may balk at the idea of buying into a stock that's already trading at such a high valuation. As good as Nvidia's business may be after all, investors may be growing concerned that the stock may be approaching a peak. </p>
<p>If you're in search of other potential AI stocks to buy, which may have more upside, you may want to consider <strong>Ambiq Micro </strong><span class="ticker-mention inline-flex items-center font-bold">(AMBQ <span class="ml-1 text-green-900">+1.09%</span>)</span>. It's a minnow compared to Nvidia, but given its recent financial performance, you may want to consider buying this small-cap stock.</p>
<div><img alt="Image of an artificial intelligence chip." width="880" height="495" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA3MDEvaW1hZ2Utb2YtYW4tYXJ0aWZpY2lhbC1pbnRlbGxpZ2VuY2UtY2hpcC5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA3MDEvaW1hZ2Utb2YtYW4tYXJ0aWZpY2lhbC1pbnRlbGxpZ2VuY2UtY2hpcC5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
</div>
<h2>Ambiq's sales skyrocketed 59% last quarter</h2>
<p>Ambiq has a market cap of $1.5 billion, and that's with the tech stock soaring 150% already this year. There was a sudden surge after the company posted its recent earnings results last week, which highlighted what could be the next big growth opportunity in tech: edge AI.</p><div><div id="foolcom_sidebar_top_container"></div></div>
<p>Rather than sending AI requests to the cloud, doing it on the actual device is what's referred to as edge AI. And this is where Ambiq can thrive. It makes ultra-low-power semiconductors that can be critical for edge AI. The company says it has now powered more than 300 million devices to date. As privacy and security grow in importance in AI, edge AI is likely to come into greater focus. </p><div></div>
<p>The company has been experiencing a surge in demand, with sales rising by a little over 59% during the first three months of the year, with its top line totaling $25.1 million. It did, however, incur a loss of $10.2 million, which was larger than the $8.3 million loss it incurred in the prior-year period.</p><div><div id="in_line_article_pitch_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Ambiq Micro Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FNQlEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FNQlEucG5nJnc9MTI4"/></div><div><h2>NYSE: AMBQ</h2><div>Ambiq Micro</div></div></div><div><div><div>Today's Change</div><div>(1.09%) $0.77</div><div>Current Price</div><div>$71.34</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$1.5B</div><div>Day's Range</div><div>$67.30 - $73.00</div><div>52wk Range</div><div>$22.12 - $73.72</div><div>Volume</div><div>982</div><div>Avg Vol</div><div>488K</div><div>Gross Margin</div><div>42.28%</div></div></div></div></section>
<h2>Is Ambiq's stock worth the risk?</h2>
<p>Ambiq's business isn't profitable, and its bottom line didn't improve despite the surge in sales. Meanwhile, its top three customers also accounted for 71% of net revenue, which can make it highly vulnerable and dependent on just a few customers.</p>
<p>This is a stock that looks as though it should have some promising potential as AI needs evolve. But as with many small-cap stocks, there's plenty of risk and uncertainty here. I wouldn't rush to buy it simply because of its heavy exposure to just a few customers, but it's definitely a stock worth watching. If it's able to continue to show strong growth while also diversifying its customer base, it could be worth loading up. But for right now, I think it may still be a bit too risky to buy at this stage.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>Ambiq Micro (AMBQ) has reported a 59% revenue growth, reaching $25.1 million, driven by demand for edge AI technology. Despite a market cap of $1.5 billion and a 150% stock increase this year, the company incurred a loss of $10.2 million. With 71% of its revenue from three customers, Ambiq faces risks but shows potential in the evolving AI landscape. Investors should be cautious due to its lack of profitability and customer concentration.</p>

- Nvidia is the most valuable company globally, valued at $5.4 trillion, and is central to the AI revolution but faces concerns over high valuation.  
- Ambiq Micro, with a market cap of $1.5 billion and a recent 59% sales increase, is positioned in the edge AI market, making ultra-low-power semiconductors for devices.  
- Despite its growth, Ambiq is not yet profitable and relies heavily on a small customer base, making it a potentially risky investment for now.

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Meet the Small-Cap Chip Stock That Is a Tiny Fraction of Nvidia's Valuation and That Just Posted 59% Revenue Growth Due to AI-Driven Demand