Chipmaker Ambarella may be small relative to its competitors, but the company is attracting more interest due to a surging stock and a few high-profile clients.
The company makes chips that process high-quality video for a variety of companies including camera maker GoPro—whose stock has surged since going public last week—and search giant Google. It's still small—its market cap is about $900 million—but the stock has soared more than 95 percent in the past 12 months as investors cheered its growth prospects.
Fermi Wang, the company's CEO, says he first met GoPro founder and CEO Nick Woodman five years ago at the Consumer Electronics Show.
"Since then, we have been working together closely with the GoPro team on all of their camera products," Wang tells CNBC. Wang founded Ambarella in 2004, and the company went public in 2012.
Kevin Cassidy at Stifel Nicolaus, who covers Ambarella, estimates that GoPro now represents about 25 percent of the company's business.
On Google wearables, Cassidy says Ambarella won a contract to be part of Google's "Helpouts" services, which include a customer service person helping with fixing your car, or taking Yoga or Piano lessons through a small video camera linked to a Wi-Fi or Bluetooth network.
The main driver for Ambarella's business, however, is the security and surveillance market, said Wang. Clients such as FLIR Systems and leading surveillance equipment suppliers like Hikvision rely on Ambarella's technology.
IP security cameras constitute 45 percent of its business, and that segment—which is growing 25 percent year-over-year—is "a bigger growth engine than GoPro," Cassidy said. Axis Communications of Sweden is its biggest customer, and it has some smaller clients in China, he said.