In this articleAMBA your favorite stocksCREATE FREE ACCOUNTThomas Fuller | SOPA Images | Lightrocket | Getty ImagesAmbarella stock roared 20% higher Friday as the chip designer reported better-than-expected fiscal second-quarter results and issued strong guidance.Here's how the company did compared with LSEG expectations:Earnings: 15 cents per adjusted vs 5 cents per expectedRevenue: $96 million vs $90 million expectedAmbarella, which is known for its system-on-chip semiconductors and software used for edge artificial intelligence, said it expects fiscal third-quarter revenue between $100 million and $108 million, beating the LSEG estimate of $91 million.The company boosted its fiscal-year revenue growth outlook to a range of 31%-35%, to $379 million at the midpoint, which topped the $350 million expected by LSEG."After a multiyear period of significant edge AI R&D investment, our broad duct portfolio enable us to address a rising breadth of edge AI applications," CEO Fermi Wang said on a call with analysts Thursday.Read more CNBC newsTesla sales plunge 40% in Europe as Chinese EV rival BYD's tripleNvidia CEO Huang says bringing Blackwell AI chip to China 'is a real possibility'Microsoft fires two employees over into its president's officeGoogle has eliminated 35% of managers overseeing small teams in past year, exec saysWang singled out strength in "portable , robotic aerial drones and edge infrastructure."Edge computing refers to the direct cessing and storing of data at the device level instead of those actions being handled remotely in the cloud at a data center.Ambarella had a net loss of $20 million or a loss of 47 cents per in the second quarter.
That narrowed from the same quarter a year ago, when the company had a net loss of $35 million or a loss of 85 cents per .
Revenue rose 50%.The company earned 15 cents per after adjusting for stock-based compensation and the amortization of acquisition-related costs.In June, Bloomberg reported the company was considering a sale and had held talks with banks.
The company's s climbed 20% higher on the news.Stock Chart IconStock chart iconAmbarella year-to-date stock chart.Don’t miss these insights from CNBC What Nvidia's earnings mean for the stock market and AI tradeJosh Brown says if Apple announced a deal with Perplexity AI, the s would hit a recordChallenging Buffett: Buying wonderful companies at fair prices isn't more fitableBest Stocks: The value name with one of the best long-term charts Josh Brown has ever seen