New York, January 16, 2026, 12:46 EST — Regular session underway.
- Shares of Ambarella climbed 8.1%, reaching $69.84 by midday.
- Chip stocks pushed higher ahead of the long weekend, buoyed by positive cues from Taiwan Semiconductor.
- Options expiration is drawing attention, along with next week’s earnings calendar.
Shares of Ambarella (AMBA.O) surged roughly 8% on Friday, buoyed by a wider rally in semiconductor stocks as investors showed renewed interest in chipmakers before the long weekend.
This shift matters as the market remains jittery over tech valuations and the speed of AI-fueled spending, prompting traders to pivot risk rapidly across the chip sector. Ambarella often mirrors that sentiment, acting like a high-beta proxy when semiconductor stocks shift.
Chip stocks found a boost after Taiwan Semiconductor Manufacturing Co laid out a robust outlook this week, lifting major players like Nvidia and Broadcom. “That’s been kind of squashed” on the valuation worry, said Alan Lancz, president of Alan B. Lancz & Associates, addressing fears that tech had become overpriced. 1
Trading has been choppy, partly because of the calendar. With U.S. markets closed Monday for Martin Luther King Jr. Day, investors are holding back on big moves. Earnings season heats up next week, with Intel, Netflix, and Johnson & Johnson all set to report. 2
Friday marks monthly options expiration — the point when contracts granting investors the right to trade shares at predetermined prices reach their cutoff. This often triggers position rolls and hedging changes, which “allow the S&P 500 to start moving around a bit more,” said Brent Kochuba, founder of options analytics firm SpotGamma. 3
Ambarella supplies low-power chips designed for edge AI and computer-vision systems, handling perception tasks directly on the device instead of sending data back to the cloud. Their tech powers applications ranging from video security to driver-assistance systems. 4
Friday’s jump pushed Ambarella to the front of the chip pack, riding coattails with bigger semis boosted by AI demand buzz. On days like this, even smaller players can catch a lift without any new announcements.
That setup can backfire just as fast. Should the post-expiration unwind trigger a volatility surge, or if the chip rally loses steam, expect swift reversals — particularly with lighter trading ahead of a holiday.
Next week’s earnings will draw close attention, especially Intel’s report, which many see as a barometer for demand and inventory trends across the semiconductor sector.
Ambarella’s next major event is its quarterly earnings release, penciled in for February 25 according to market calendars. Investors will be watching closely for updates on order flows in its various sectors and any changes in margins or capital expenditure. 5
