Unconfirmed Rumors Link Nvidia to Potential Bid for Ambarella
Key Facts
Newsquawk reported on October 21 that unconfirmed rumors pointed to Nvidia as a potential bidder for Ambarella. The newsletter did not establish that an offer or negotiations existed, and the available information did not confirm the matter with either company. This differs from saying Nvidia is actively considering an acquisition: what was reported was market chatter only. The cited disclosures offered no explanation for the potential interest or details of a deal. On October 26, Ambarella shares closed at $66.82, while Nvidia shares closed at $216.
Ambarella’s quarterly results provide a picture of the company’s performance separate from the rumor. Revenue in the second quarter of its fiscal 2027, which ended on July 31, reached $108.1 million, up 13.2% from $95.5 million in the same period of the previous fiscal year. The company said its edge AI revenue reached a record during the quarter. Its chief executive added that growth was balanced across the automotive and IoT markets. These figures put the company’s operating performance at the forefront of the available context, without linking the disclosures to any interest from Nvidia.
Net loss under U.S. generally accepted accounting principles narrowed to $6.7 million in the second quarter of fiscal 2027, compared with a loss of $20.0 million in the corresponding quarter of fiscal 2026. This reflects an improvement in net loss year over year, alongside the revenue growth reported by the company. The available disclosure offered no explanation linking the improvement to the acquisition rumor. This figure alone also provides no details on the path to profitability in coming periods. The reported results remain a financial indicator separate from any potential offer that has not been confirmed.
Ambarella said the revenue increase was primarily tied to higher shipments of high-priced AI inference processors, according to its quarterly report. The company describes its chips as low-power systems-on-chip that integrate its proprietary accelerators for computer vision and deep learning. These products target electronic systems with varying levels of autonomy. As part of its business expansion, the chief executive cited the launch of the company’s first standalone AI accelerator, X7. He also announced two 7-year agreements to develop the indirect sales channel with Macnica and Capgemini, according to the company’s disclosure.
But the company warned that the timing and volume of its chip sales depend on customers producing and launching their products and winning market acceptance, factors it said are beyond its control. The warning sets clear limits on how to read shipment growth: sustained demand is affected by the stages of customers’ product development and market launches. The report did not link this operational dependence to any deal or talks with Nvidia. Ambarella’s results and the risks around the timing of customer demand therefore remain separate context for assessing its business. The possibility that Nvidia is an interested party remains within the scope of the unconfirmed rumors reported by Newsquawk.
For the following period, Ambarella forecast revenue of between $115.0 million and $124.0 million in the third quarter of fiscal 2027, which ends on October 31, 2026. It also forecast a gross margin of between 59.0% and 60.0% on a non-GAAP basis. This guidance sets out what the company announced for the quarter, without confirming the rumor or providing evidence of a deal’s progress. The available information included no official statement from Nvidia or Ambarella confirming an offer or negotiations. Any development on the matter remains subject to an official disclosure by the two parties.