NEW YORK (TheStreet) -- GoPro is going public. And investors on say high-definition video and audio chipmaker Ambarella  (AMBA) will ride the wave of enthusiasm for the mount-anywhere, "action camera" maker.

$AMBA GOPRO IPO... Here we go...

? Coconut_Crab (@WhackaMole) May. 19 at 06:44 PM

In an IPO filing yesterday, GoPro revealed that its mountable, wearable cameras -- which developed as a way for athletes to film themselves participating in extreme sports -- generated $985.7 million in revenues last year. GoPro has been profitable since at least 2011, according to the filing, and earned $60.6 million in 2013.

And GoPro has not yet begun to exploit all its revenue opportunities. GoPro includes a studio application that allows users to edit and share video. It uploads some of these user videos, along with GoPro films made by professional athletes and celebrities, to channels on Facebook (FB), Instagram, Twitter  (TWTR), and Google's  (GOOG) YouTube. GoPro's Youtube channel alone has had over 450 million views. In the future, GoPro plans to show ads along with these videos.

Becoming a media company via hardware origins $GPRO

? Dan Ramsden (@d_ramsden) May. 20 at 07:17 AM

In its prospectus, GoPro said it would use the ticker GPRO and raise $100 million. However, that figure is considered a placeholder. The actual amount will become clear as the company makes its pitch to investors and gauges interest.

The main beneficiary of GoPro excitement is Ambarella, say StockTwits' users and Wall Street analysts. The company, which went public in 2012, makes video, image and audio processing systems-on-a-chip used in GoPro's HD cameras, as well as in Samsung (SSNLF) products and products delivered to automotive parts-maker Robert Bosch.

$AMBA up on GoPro IPO announcement. $GOPRO $GPRO

? Anne (@abubnic) May. 19 at 06:50 PM

"@AnalystWire: Ascendiant Capital Starts Ambarella ($AMBA) at Buy; Sees Catalysts from GoPro IPO"

? Chris dodge (@cdodge43) May. 19 at 09:51 AM

GoPro is particularly reliant on Ambarella. In the IPO filing, GoPro revealed that all its video compression and image processing semiconductors come from Ambarella and it does not have an alternative supplier. "If Ambarella stopped supplying components on acceptable terms, or at all, or we experienced delays in receipt of components from Ambarella, we would experience a significant disruption in our ability to produce our products, and our business would be materially and adversely affected," said the filing.

Ambarella shares fell 5% Tuesday morning after an initial pop on the GoPro news. Ambarella has declined 25% so far this year after climbing nearly 177% in 2013. It currently trades at 16 times expected 2016 earnings.

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.