NXP is reportedly in talks to buy edge-AI chipmaker Ambarella for about $3.3 billion

NXP Semiconductors is reportedly in talks to acquire Ambarella, a maker of low-power edge-AI processors, in a deal that would value the chipmaker at roughly $3.3 billion.

Ambarella shares jumped about 18% on the report. The $3.3 billion figure reflects Ambarella’s market capitalization at the time; no deal price has been disclosed, talks are said to be ongoing, and no agreement has been reached.

The logic is strategic for NXP. Ambarella’s processors power automotive cameras, advanced driver-assistance systems (ADAS) and security cameras — markets that sit close to NXP’s automotive-chip business, which is expected to generate roughly half of the company’s projected $15.1 billion in 2026 revenue. Edge-AI products drove about 80% of Ambarella’s sales in its fiscal 2026, up 50% year over year and lifting overall revenue 37%.

Buying Ambarella would hand NXP a fast-growing edge-AI franchise as carmakers add more on-device inference to cameras and driver-assistance systems, cutting reliance on cloud processing.

The talks carry the usual caveats and then some. Neither NXP nor Ambarella has confirmed the discussions, no terms are public, and deal talks at this stage collapse as often as they close. The share pop prices in a premium that has not been offered on the record.