iStock

Shares of Ambarella (AMBA - Get Report) , a semiconductor design company, rose considerably in premarket trading Wednesday after the company beat fourth-quarter earnings estimates. 

The stock was rising 9.20% to $44.27 a share in premarket trading.

Earnings per share were 14 cents on an adjusted basis, blowing past Wall Street's expectations of 4 cents. The EPS result was, however, well below 2018's fourth-quarter earnings of 47 cents a share. Sales were $51.5 million, narrowly beating estimates of $51 million. The sales result was also well below 2018's result of $70.6 million. 

"Strategically, fiscal 2019 was one of the most important years in Ambarella's 15-year history as the company continued to execute on its transformation from a pure video processing company to a computer vision company," said Fermi Wang, president and CEO. "Despite the decline in our consumer electronics business, and the geopolitical and macroeconomic headwinds, we have and will continue to focus our investment on computer vision. While it is early in the computer vision adoption cycle, we are excited about expanding our portfolio and having more customers enter mass production." 

The geopolitical headwinds Wang mentioned apply to most players in the chip business, as weakening Chinese demand in the face of a slowing global economic environment have limited semiconductor sales in the past several months. 

The stock has fallen 21.5% in the past year. 

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