NXP Semiconductors is in talks to buy chip designer Ambarella, according to a report by the Financial Times citing people familiar with the matter.
The discussions between NXP Semiconductors and Ambarella are ongoing and may not result in a transaction. Neither NXP nor Ambarella immediately responded to requests for comment from Reuters.
Ambarella develops software and low-power AI chips for edge devices, including vehicles, cameras, and robotics. A potential acquisition of the company, which is valued at more than $3 billion, could expand NXP Semiconductors' capabilities in electrification, radar, and software-defined vehicles.
Ambarella market capitalization
Following the report, Ambarella shares rose nearly 17 per cent, while NXP Semiconductors shares fell by over 3 per cent.
On Tuesday, NXP Semiconductors forecast quarterly revenue that exceeded analysts' estimates. This revenue forecast signals strong demand for the company's chips across the data-center, industrial, and automotive markets.