Chip Designer Ambarella Is Said to Explore Potential Sale (4)

Chip design company Ambarella Inc. is considering options including a potential sale, according to people familiar with the matter.

Ambarella, which is working with bankers, has reached out to potential buyers, said the people, who asked not to be identified discussing private information. The company’s shares rose 21% on the news, giving it a market value of about $2.6 billion.

Santa Clara, California-based Ambarella could appeal to chip rivals interested in bulking up their automotive portfolio, the people said. Some private equity firms could also show interest, they added.

The company’s deliberations are ongoing, and there’s no certainty they’ll lead ...