Ambarella Inc. (NASDAQ: AMBA) reported its earnings after the close Tuesday, and the results were very positive for the video chip producer. Both earnings and revenue came in well above estimates and prior-year results, at $0.68 per share and $64.7 million, respectively.

One of the biggest takeaways from the report is what it means in terms of Ambarella’s relationship with one of its top business partners, GoPro Inc. (NASDAQ: GPRO).

GoPro cameras contain Ambarella processors, and GoPro produces a market-leading product. This arguably makes Ambarella that much more valuable because GoPro speaks for the quality of its processors, in turn attracting more clients and more sales for Ambarella. Also, Ambarella is inside the devices of GoPro’s competitors as well.

The boost from this most recent earnings report serves to solidify how valuable Ambarella is to GoPro’s model and how valuable it could be to that industry as a whole. Considering Ambarella’s unique processor and software technologies, analyst firms have anticipated that Ambarella could have a sustained leading market share in the range of 20% to 25% in core growth markets. Note that in this earnings report, revenues grew 61.9%, compared to the fourth quarter of the previous year.

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Ultimately, as long as Ambarella and GoPro stick together, they both can continue to profit from this niche market of wearable cameras. We note also that GoPro stock has been suffering since this past fall, dropping off its post-IPO highs.

Ambarella shares hit a new all-time high of $67.19 shortly after the opening bell Wednesday. The stock has a consensus analyst price target of $59.17 and a previous 52-week trading range of $21.60 to $63.20.

GoPro shares were up about 3% at $41.49 in early trading. The consensus price target is $65.25, and the post-IPO trading range is $28.65 to $98.47.

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