Prosper Stars & Stripes Closed Ambiq Micro (AMBQ) as Bullish Target Achieved

Prosper Stars & Stripes Closed Ambiq Micro (AMBQ) as Bullish Target Achieved

Thu, September 10, 2026 at 4:44 PM GMT+3 3 min read

Prosper Stars & Stripes, a long/short equity fund, recently released its second-quarter 2026 investor letter. The letter can be downloaded here. In Q2 2026, the portfolio delivered a strong net return of +30.1% compared to the Russell 2000 Index's +21.5% return and the HFRX Equity Hedge Index's +10.3% return. The long book drove performance, generating a 43.2% gross contribution, while average net exposure remained relatively modest at 47%. U.S. economic growth remained resilient despite inflation concerns, elevated energy prices, and geopolitical uncertainty. Markets rallied sharply after easing U.S.-Iran tensions pushed oil prices lower, supporting renewed risk appetite. Small-cap equities benefited significantly, with Information Technology, Industrials, and Health Care leading gains, while Energy declined as crude prices fell. Year to date, the Composite returned +23.7%, slightly ahead of the Russell 2000's +22.6% and well above the HFRI Equity Hedge Index's +9.7%. Additionally, you can review the Portfolio's top 5 holdings to see its best picks for 2026.

In its second-quarter 2026 investor letter, Prosper Stars & Stripes highlighted Ambiq Micro, Inc. (NYSE:AMBQ). Ambiq Micro, Inc. (NYSE:AMBQ), provides ultra-low-power semiconductor solutions, contributed to the portfolio's long book during the quarter. On September 09, 2026, Ambiq Micro, Inc. (NYSE:AMBQ) closed at $63.78 per share. Over the past quarter, Ambiq Micro, Inc. (NYSE:AMBQ) declined 0.89% and its shares gained 74.38% over the past 52 weeks. Ambiq Micro, Inc. (NYSE:AMBQ) has a market capitalization of $1.53 billion, and its stock has traded within a 52-week range of $22.12 to $91.61.

Prosper Stars & Stripes stated the following regarding Ambiq Micro, Inc. (NYSE:AMBQ) in its Q2 2026 investor letter:

"Ambiq Micro, Inc. (NYSE:AMBQ) was the second-best contributor to our long book during the quarter. Ambiq is a fabless semiconductor company that designs ultra-low power systems-on-chip (SoCs) for edge AI applications. The company's proprietary design approach delivers two to five times lower power consumption than competing solutions, a decisive advantage in battery-constrained devices like wearables, where customers include Garmin, Google, and Huawei. In semiconductors, we look for companies levered to two enduring themes: lower power consumption and miniaturization. In January, the company raised equity, signaling a step-change in revenue growth. After posting 2% year-over-year revenue growth in Q4 2025, the company reported 59% growth in Q1 2026 and guided for 75% growth for Q2. We ascribed a high single digit multiple of sales to the shares, but as the price met our bullish targets, like many stocks in this part of the market, we exited our position."

Ambiq Micro, Inc. (NYSE:AMBQ) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Ambiq Micro, Inc. (NYSE:AMBQ) at the end of the second quarter which was 14 in the previous quarter. While we acknowledge the potential of Ambiq Micro, Inc. (NYSE:AMBQ) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Ambiq Micro, Inc. (NYSE:AMBQ) and shared a list of best performing semiconductor stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.