Ambarella (AMBA - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Ambarella basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Ambarella imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AmbarellaFor the fiscal year ending January 2027, this video-compression chipmaker is expected to earn $0.77 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Ambarella. Over the past three months, the Zacks Consensus Estimate for the company has increased 11.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Ambarella to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$48.30▼
$96.69Price Target$101.13
Ambarella’s NASDAQ: AMBA stock price has struggled with traction for years, but that may be coming to an end. The company's shift to computer vision and edge AI is paying off, and analysts are giving it the credit it deserves. Rosenblatt notably raised its price target to a Wall Street high of $120 in late June, calling the stock a Top Pick for the 2nd half of 2026.
In analyst Kevin Cassidy’s view, Ambarella is a pure play on physical AI, perhaps the ultimate play, as its low-power, high-performance System-on-a-Chip (SoC) designs provide utility across a wide range of use cases. With AI shifting to the application phase, Ambarella is well-positioned to capture market share in surveillance, drones, autonomous vehicles, and, most importantly, robotics.
Get Ambarella alerts:
Ambarella's Strengths Make It Mission-Critical for ManufacturersAmbarella’s advantages span four major pillars: efficiency, advanced processing capabilities, a unified software stack, and multi-sensor functionality. Power efficiency has been described as “extreme.” Edge AI processors handle many complex tasks at the sensor endpoint, reducing latency and the cost of sending data to the cloud, along with alleviating thermal and bandwidth constraints.
Advanced processing enables multi-functionality at the endpoint, including real-time quality enhancement, high-dynamic-range enhancement, and fisheye dewarping. The unified stack makes deployments easy, reducing original equipment manufacturer (OEM) time-to-market, while the multisensor functionality delivers industry-leading performance: integrating computer vision with AI-enhanced radar yields sharper edges on scanned objects, enabling safer operations for robots and vehicles.
Analyst Trends Firm Up: Ambarella Forecasted to Hit Long-Term HighsRosenblatt has not been the only analyst firm to take note. Analyst trends in early July include a firm consensus Moderate Buy rating, a 57% Buy-side bias among 14 tracked by MarketBeat, and a steadily increasing consensus price target. Up nearly 20% on a trailing 12-month basis, the consensus in early July forecasts about 20% upside from the critical support target and would be sufficient for a multi-year high. More importantly, the trend is moving toward the high end, and institutions are buying into the outlook.
Institutional trends have been equally bullish, providing support at the lower end of AMBA’s long-term range and limiting downside in the second half. As it stands, the group owns more than 80% of the stock and has accumulated at a pace of more than $2 to $1 over the trailing 12 months. Activity in Q2 2026 has been particularly bullish, with the balance ramping to nearly $24 bought for each $1 sold.
In this scenario, AMBA’s stock price could gain momentum as it advances, potentially triggering an influx of capital with a close at new highs. The opportunity for investors is to get into AMBA stock early, while it is still trading within its long-term range and before fear of missing out (FOMO) grips the market.
Short interest is another factor for investors to be aware of. The short interest is not astronomically high in early July, about 7%, but has been rising in recent reports. The risk is that short sellers can cap gains in this stock, but that is a near-term problem, given recent earnings results, guidance, and analyst activity. The more likely scenario is that shorts begin covering, if not over the summer, then by early fall when the subsequent earnings release is expected.
Ambarella Stock Poised for Gains With Catalysts AheadAmbarella’s guidance forecast a sequential acceleration in revenue and solid profitability metrics, tied to favorable commentary on demand dynamics, particularly in the automotive sector. Automotive revenue hit another record in Q1, driven by deepening penetration and strength in the commercial market.
Additionally, CEO Fermi Wang noted growing client interest in broader, deeper partnerships across end markets such as edge infrastructure and robotics, so guidance may be cautious. The Q2 results, expected in late August, will likely be better than forecast.
The long-term opportunity is growth, profits, and cash flow. Analysts are forecasting improvements in the coming quarters, but the data is limited. Few long-term price targets exist, and much of the available commentary does not account for the company’s growing strengths. The likely outcome is that results continue to accelerate sequentially, driving analysts into a persistently bullish revision cycle that helps bolster market sentiment (and stock prices) over time.
Ambarella’s stock price reflects the budding opportunity. While price action has remained within its trading range, Rosenblatt’s price target increase and commentary triggered a single-day 28% stock price increase, revealing a market ready to buy.
Not only does the action show strong support within the range, but the indicators suggest another upswing is likely. The question is whether AMBA will reach a new high sooner or later, and the answer may be sooner. Trading volume is on the rise, suggesting demand for AMBA is increasing and the available share count is dwindling.
Should You Invest $1,000 in Ambarella Right Now?Before you consider Ambarella, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ambarella wasn't on the list.
While Ambarella currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
On July 1, 2026, Ju Chi-Hong, a senior VP at Ambarella (AMBA 11.30%), disclosed the sale of 10,000 shares of common stock in an open-market transaction, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)10,000Transaction value$888,400.00Post-transaction shares (direct)155,924Post-transaction value (direct ownership)$13.8 millionTransaction value based on SEC Form 4 reported price ($88.84); post-transaction value based on July 1, 2026 market close.
Key questionsHow does the size of this sale compare to Ju Chi-Hong’s historical transaction activity?
This 10,000-share sale is larger than Ju Chi-Hong’s average sell-only transaction size (~3,569 shares) and exceeds the majority of recent transactions, though it remains below the maximum single sale of 11,213 shares recorded since July 2023.What impact does this trade have on the insider’s overall ownership in Ambarella?
Direct holdings decreased by 5.75%, leaving Ju Chi-Hong with 155,924 directly held shares and 8,000 indirectly held shares, maintaining a substantial continuing position in the company.Was the transaction executed at a premium, and what was the market context at the time?
The weighted average sale price was around $88.84 per share, compared to a July 1, 2026 market close of $88.34 and an opening price of $83.63, placing the execution price ~6.2% above the session’s open and nearly flat to the close.Company overviewMetricValuePrice (as of market close 2026-07-01)$88.84Market capitalization$3.44 billionRevenue (TTM)$405.19 million1-year price change16.40%* 1-year performance calculated using July 1st, 2026 as the reference date.
Company snapshotAmbarella develops advanced video processing and AI-powered system-on-chip (SoC) solutions for automotive, security, robotics, and consumer electronics applications.The firm generates revenue by selling high-performance semiconductor products to OEMs and ODMs, leveraging proprietary video compression and computer vision technology.It serves automotive manufacturers, security and surveillance providers, robotics firms, and consumer electronics brands seeking integrated imaging and AI capabilities.Ambarella, Inc. is a leading semiconductor company specializing in high-definition video processing and AI-based computer vision chips. The company’s integrated SoC designs enable superior image quality, low power consumption, and advanced analytics for a broad range of end markets. Ambarella’s strategic focus on automotive and security segments, combined with its deep expertise in video and AI, provides a competitive advantage in enabling next-generation intelligent devices.
What this transaction means for investorsChip company executives routinely sell to diversify pay that arrives mostly as equity, and the absence of a 10b5-1 plan suggests the timing was his call, and selling near $88.84 after the stock climbed from an $83.63 open seems like expected opportunism.
Fundamentally, the business itself has momentum. Revenue rose 16.9% to $100.4 million in the latest quarter as automotive revenue hit an all-time record, and management guided for $105 million to $111 million in revenue next quarter. The company still runs a GAAP loss, mostly from stock comp, but non-GAAP earnings improved to $0.11 per share and the board just authorized a new $50 million buyback. CEO Fermi Wang also gave reason to be optimistic, saying "demand signals for edge AI remain very strong."
For long-term investors, one insider trimming 5.75% of his stake matters far less than whether Ambarella can convert this edge AI demand into sustained profitability. With shares up 18% over the past year, slightly trailing the S&P 500's 20%, that path to real GAAP profits is the thing to watch.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Shares of Ambarella Inc. AMBA surged about 28% on Tuesday.
The rally came after Rosenblatt Securities identified the edge artificial intelligence chipmaker as one of its top technology stock picks for the second half of 2026, citing its strong positioning in the fast-growing physical AI market.
The brokerage included Ambarella among a select group of eight technology companies it believes offer attractive risk-reward profiles heading into the second half of the year.
Rosenblatt maintained a Buy rating on the stock and reiterated its $120 price target, implying approximately 79% upside from Monday's closing price.
The rally adds to an already strong run for the semiconductor company, whose shares have climbed 74% over the past three months.
Rosenblatt's bullish outlook centers on Ambarella's exposure to what it describes as the rapidly expanding physical AI market, where artificial intelligence is deployed directly on devices rather than relying solely on cloud-based computing.
The brokerage expects AI adoption to continue expanding beyond data centers into real-world applications that require intelligent processing close to the source of data.
"We see AMBA as a Physical AI pure play," analyst Kevin Cassidy wrote in a report released Tuesday.
Cassidy said Ambarella's semiconductor products are well positioned to benefit from growing demand for edge AI computing across multiple industries.
Edge AI applications remain a key growth driverRosenblatt's investment thesis is based largely on increasing demand for AI vision processors capable of delivering high-performance computing with low power consumption directly at the edge.
"Applications such as surveillance, robotics, industrial automation, drones and autonomous systems require high-performance, low-power AI vision processors close to the sensor," Cassidy said, adding, "Ambarella's algorithm first AI [security operations center] architecture delivers."
The brokerage believes these markets position Ambarella to benefit as AI inference increasingly shifts from centralized cloud infrastructure to connected devices such as cameras, autonomous vehicles, robots and industrial equipment.
Recent business developments also support that outlook. Ambarella recently reported record fiscal 2026 revenue, with Edge AI products accounting for approximately 80% of its business.
The company also signed a long-term agreement with Hanwha Group covering security, robotics and industrial automation.
The agreement represents a potential revenue opportunity of up to $800 million over more than a decade, although that figure is not guaranteed.
Despite the positive outlook, Ambarella continues to face execution challenges as it invests heavily to expand its Edge AI business.
The company's long-term growth thesis depends on its Edge AI system-on-chip platforms becoming a critical hardware layer as AI inference moves closer to cameras, vehicles and industrial devices.
Broader enterprise adoption and increased automotive deployments remain key catalysts for the business.
At the same time, higher research and development spending and rising operating costs could pressure financial performance if expected design wins and production volumes fail to materialize.
Ambarella also continues to face customer and geographic concentration risks, which could affect future growth.
According to long-term projections, Ambarella is expected to generate approximately $526.3 million in revenue and $74.3 million in earnings by 2028.
Achieving those figures would require annual revenue growth of about 14.8% and a significant improvement in profitability from its current earnings position.
John Alexander Young, Chief Financial Officer of Ambarella (AMBA +1.06%), reported the direct sale of 5,033 shares of Common Stock for a transaction value of approximately $340,000 on June 17, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)5,033Transaction value~$340,000Post-transaction shares (direct)112,590Post-transaction value (direct ownership)~$7.4 millionTransaction value based on SEC Form 4 weighted average reported price ($67.54); post-transaction value based on June 17, 2026 market close price.
Key questionsHow does this sale compare to John Young's historical trading pattern?
In the past year, Young executed eight sales, with the current sale of 5,033 shares ranking at the higher end of his typical transaction size, which averaged 2,845 shares per sale; this larger trade reflects the reduced remaining holdings rather than a voluntary scale-up.Did the transaction involve any indirect holdings or derivative securities?
No, the sale was limited to direct ownership of Common Stock; no indirect holdings or options were involved in the transaction.What is the impact on Young's overall economic exposure to Ambarella?
While direct Common Stock holdings decreased by 4.28%, Young's direct Common Stock holdings after the transaction total 112,590 shares.Company overviewMetricValuePrice (as of market close 2026-06-17)$65.88Market capitalization$3.07 billionRevenue (TTM)$405.19 million1-year price change35.39%* 1-year performance calculated using June 17, 2026 as the reference date.
Company snapshotAmbarella develops advanced system-on-a-chip (SoC) solutions integrating high-definition video processing, AI computer vision, and image manipulation for automotive, security, robotics, and consumer electronics markets.The company generates revenue by designing and selling semiconductor solutions to OEMs and ODMs, leveraging both direct sales and distributor networks.Primary customers include automotive manufacturers, security camera providers, robotics companies, and producers of consumer electronics such as wearable cameras and drones.Ambarella is a leading semiconductor company specializing in high-performance video processing and artificial intelligence SoCs. The company leverages deep technical expertise to deliver integrated solutions that enable advanced imaging, computer vision, and efficient power usage across diverse end markets.
Ambarella's competitive edge lies in its ability to combine video, AI, and system functions on a single chip, supporting demanding applications in automotive, security, and next-generation consumer devices.
What this transaction means for investorsAmbarella CFO John Young’s June 17 sale of company stock came at a time when shares were on an upswing after falling to a 52-week low of $48.30 on March 30. That said, the rising share price was not the catalyst for Young’s disposition.
His sale was performed for a couple of reasons. Young disposed of 3,186 shares to fulfill tax withholding obligations incurred in connection with the vesting of restricted stock units.
The remaining 1,847 shares were sold as part of a pre-arranged Rule 10b5-1 trading plan adopted in January of 2026. Such plans are often implemented by insiders to avoid accusations of trading based on insider information. This indicates the disposition was a non-discretionary transaction.
Ambarella’s stock recovered from its low thanks to excellent business performance. In the company’s fiscal first quarter ended April 30, revenue rose 17% year over year to $100.4 million.
Its artificial intelligence solutions appear to be gaining growing traction. Ambarella forecasted sales to accelerate to between $105.0 million and $111.0 million for its fiscal second quarter.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The artificial intelligence (AI) trade has thus far been largely restricted to data center infrastructure. Companies selling AI hardware, such as chips, servers, and networking components, have witnessed a remarkable increase in revenue and earnings in recent years.
Nvidia (NVDA +3.19%) is one of the biggest examples of how the booming demand for AI data center components has transformed a company's fortunes. Its revenue in fiscal 2023 (which ended in January 2023) was $27 billion. That was just before Nvidia started benefiting from the AI-fueled demand for its graphics processing units (GPUs).
The introduction of ChatGPT in November 2022 gave Nvidia a massive boost, as customers made a beeline for its GPUs to train and deploy AI models. It is now the largest company in the world and is expected to clock a whopping $392 billion revenue in fiscal 2027. That points toward a jump of over 14x in just four years.
AI, however, is now moving from data centers into real-world applications that are closer to users, which require processing at the edge. This explains why Nvidia is looking to capitalize on the growing demand for AI-powered robots, cars, drones, and robotic arms. These physical devices need to run AI workloads locally to make real-time decisions.
Investing in Nvidia stock could help you make the most of this fast-growing niche, especially considering that the company is a pioneer in AI. However, there's a relatively little-known semiconductor company -- Ambarella (AMBA +3.58%) -- that's making steady progress in this space.
Let's look at the reasons why the adoption of AI in edge computing devices could be a massive tailwind for this semiconductor stock in the long run.
Image source: Getty Images.
Ambarella has the potential to win big from the growing adoption of AI at the edge Edge AI applications will expand the productivity gains of this technology. For instance, an AI-capable drone can chart its path and deliver to customers, or a humanoid robot can solve complex tasks and assist humans. Not surprisingly, the size of the edge AI market is anticipated to jump from $25 billion in 2025 to almost $119 billion in 2033, clocking a compound annual growth rate of nearly 22%, according to Grand View Research.
Today's Change
(
3.58
%) $
2.43
Current Price
$
70.21
Ambarella is a pure-play edge AI semiconductor company. It primarily designs chips for the automotive and the Internet of Things (IoT) markets. The company noted in its May earnings call that it has shipped more than 46 million edge AI chips so far, and the growing demand for inference and physical AI applications is likely to expand its addressable market at a nice pace in the future.
Importantly, Ambarella now sees customers entering into long-term agreements (LTAs) for multiple generations of its chips. The good part is that Ambarella struck its first LTA last quarter "to develop a semi-custom ASIC for a customer who wants to support a certain complex AI workload." And now, the company has entered into another LTA with South Korean company Hanwha "for the sourcing and co-development of Ambarella's edge AI technology across Hanwha's product lines and industries, including physical security, operational automation, life sciences, robotics and other industry markets."
Ambarella estimates that this new agreement could help it generate more than $800 million in revenue over a decade, adding that it is one of the largest agreements that it has signed in its history. The company is in discussions with additional companies to sign LTAs, suggesting its revenue pipeline is likely to improve further.
Meanwhile, Ambarella is gaining traction in the robotics space, claiming it has more than 15 design wins across 30 customers. In all, Ambarella is well-placed to grow its business at a brisk pace in the long run. The company estimates that its serviceable addressable market (SAM) in edge AI will grow at an annual rate of 18% through fiscal 2031. More importantly, Ambarella believes its revenue during this period will grow faster than the end market.
That's the reason why Ambarella could turn out to be a top AI stock over the long run. In fact, there are already signs that Ambarella is well on its way to making the most of the secular growth of the edge AI market.
The company's healthy growth should translate into solid gains on the stock market Ambarella released its fiscal 2027 first-quarter results (for the quarter ended April 30) on May 28. Its revenue increased by 17% year over year to $100.4 million. Earnings per share grew at a much stronger pace of 57% to $0.11 per share. The company expects its revenue to increase by 13% year over year in the current quarter to $108 million, based on the midpoint of its guidance range.
However, the design wins and the new agreements Ambarella has been signing indicate it could deliver stronger-than-expected growth. Analysts expect its revenue to grow by 13% in the current fiscal year to $441 million, followed by a gradual pickup going forward.
Data by YCharts
However, if Ambarella lives up to its claim of exceeding the 18% annual growth it expects for its edge AI SAM through fiscal 2031, it could easily beat market expectations. Also, the company has been delivering impressive earnings growth, and the gradual top-line uptick should allow it to sustain that momentum going forward.
Ambarella is trading at 7.2 times sales right now. That's lower than the U.S. technology sector's average price-to-sales ratio of 9.5. Assuming it grows in line with consensus expectations and clocks $579 million in sales in fiscal 2029, its market cap could jump to $5.5 billion (if it trades at the U.S. tech sector's average sales multiple at that time).
That's a potential gain of 85% from current levels, which is why investors looking for the next AI chip winner would do well to take a closer look at Ambarella before it starts soaring.
LONG BEACH, Calif.--(BUSINESS WIRE)---- $AMBA #AIAgents--RP1 and the Metaverse Standards Forum™, through the Open Metaverse Browser Initiative (OMBI), today introduced Sneeze, the first metaverse browser engine (MBE) ever built. Available immediately as open source under the Apache 2.0 license, Sneeze gives developers, enterprises, hardware manufacturers, and researchers the foundational technology to build the open metaverse. At the core of every web browser today sits an engine: Blink powers Chrome, Edge, and Br.
CFO John Alexander Young sold 7,615 ordinary shares over two days (March 17 and March 19, 2026) for a transaction value of approximately $406,000, with an average sale price of around $53.32 per share. This transaction represented 6.0% of Young's direct holdings at the time, reducing his direct ownership to 119,594 shares post-sale.
Ambarella, Inc. is positioned for growth in edge AI, targeting industrial automation, robotics, and automotive markets with new hardware and software platforms. I recommend AMBA shares with a Buy rating and $84.28 price target (6.60x eFY28 price/sales), citing valuation remediation and robust top-line growth prospects. AMBA's next-gen CV7 chip and Cooper Developer Platform enable cloudless robotics orchestration, providing a complete ecosystem for AI-enabled machine vision.
Ambarella, Inc. (NASDAQ:AMBA – Get Free Report)’s share price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $70.73 and traded as low as $52.48. Ambarella shares last traded at $54.30, with a volume of 668,393 shares changing hands.
Wall Street Analyst Weigh In Several analysts recently issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Ambarella in a report on Wednesday, January 21st. Consumer Edge restated a “buy” rating on shares of Ambarella in a research note on Tuesday, February 24th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $115.00 target price on shares of Ambarella in a research report on Monday, March 23rd. Finally, Wall Street Zen downgraded Ambarella from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Ambarella currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.00.
View Our Latest Stock Analysis on Ambarella
Ambarella Price Performance The company has a market capitalization of $2.38 billion, a P/E ratio of -30.51 and a beta of 2.01. The stock’s fifty day simple moving average is $57.97 and its 200-day simple moving average is $70.73.
Ambarella (NASDAQ:AMBA – Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.10 by $0.03. Ambarella had a negative return on equity of 12.16% and a negative net margin of 19.42%.The business had revenue of $100.87 million for the quarter, compared to analyst estimates of $100.17 million. During the same period in the previous year, the company posted $0.11 earnings per share. The firm’s revenue for the quarter was up 20.1% on a year-over-year basis. On average, research analysts predict that Ambarella, Inc. will post -2.81 earnings per share for the current year.
Insiders Place Their Bets In other news, VP Chi-Hong Ju sold 4,729 shares of the firm’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $52.77, for a total value of $249,549.33. Following the sale, the vice president owned 164,166 shares in the company, valued at approximately $8,663,039.82. This trade represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Chan W. Lee sold 6,729 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $52.77, for a total transaction of $355,089.33. Following the transaction, the insider directly owned 156,370 shares in the company, valued at $8,251,644.90. This trade represents a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 101,928 shares of company stock valued at $5,803,417. Corporate insiders own 5.70% of the company’s stock.
Institutional Trading of Ambarella A number of hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in shares of Ambarella by 6.0% during the 4th quarter. Vanguard Group Inc. now owns 5,480,285 shares of the semiconductor company’s stock worth $388,223,000 after purchasing an additional 311,649 shares during the period. State Street Corp lifted its stake in shares of Ambarella by 8.9% in the second quarter. State Street Corp now owns 1,855,170 shares of the semiconductor company’s stock valued at $122,562,000 after buying an additional 151,694 shares during the period. Jericho Capital Asset Management L.P. lifted its stake in shares of Ambarella by 30.8% in the fourth quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company’s stock valued at $112,429,000 after buying an additional 373,734 shares during the period. The Manufacturers Life Insurance Company grew its position in Ambarella by 4.0% during the second quarter. The Manufacturers Life Insurance Company now owns 1,371,511 shares of the semiconductor company’s stock worth $90,609,000 after buying an additional 52,954 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Ambarella by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 1,020,527 shares of the semiconductor company’s stock worth $72,305,000 after buying an additional 35,510 shares in the last quarter. 82.09% of the stock is owned by institutional investors.
About Ambarella (Get Free Report)
Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.
Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.
Featured Stories Five stocks we like better than Ambarella Receive News & Ratings for Ambarella Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ambarella and related companies with MarketBeat.com's FREE daily email newsletter.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ambarella (AMBA - Free Report) Headquartered in Santa Clara, CA, Ambarella Inc. develops video compression and image processing semiconductors, which enables high-definition or HD video capture, share and display.
AMBA is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. AMBA has a Momentum Style Score of B, and shares are up 3.7% over the past four weeks.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.10 to $0.74 per share. AMBA boasts an average earnings surprise of +70.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AMBA should be on investors' short list.
I am reiterating Ambarella as a Strong Buy, driven by its transformation into a full-stack edge AI platform company, not just a chip vendor. AMBA's edge AI SoCs now account for 80% of total revenue, with fiscal 2026 revenue reaching $390.7M, up 37.2% year-over-year. The market still values AMBA as a cyclical semiconductor stock, but I see it as an edge AI infrastructure enabler for physical AI and robotics.
SANTA CLARA, Calif., May 04, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced it will hold its first quarter fiscal year 2027 earnings conference call on Thursday, May 28, 2026, at 1:30 p.m. (Pacific Time). The company will issue its earnings release after the market closes that same day.
Those interested in asking a question on the call are required to register online in advance. Upon completing the first step of the online registration process, please note a registration verification code will be emailed to you, and this code must be entered to complete the online registration process. Once registered and verified, the dial-in numbers will be sent to the registered email with a personal identification number (PIN). When dialing in for the live call, the PIN number must be provided to access the call.
The live webcast of the conference call, and a webcast replay, will be available at: http://investor.ambarella.com/events.cfm
About Ambarella
With an installed base of more than 42 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
Contact:
Louis Gerhardy
VP Corporate Development
408-636-2310 [email protected]
SANTA CLARA, Calif., May 05, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced that IEEE has honored Ambarella’s co-founder, President and CEO, Dr. Fermi Wang, with the inaugural 2026 IEEE Arun N. Netravali Video Analytics, Technology and Systems Award, alongside his Ph.D. advisor, Professor Dimitris Anastassiou of Columbia Engineering.
The award recognizes transformative advancements in video technology, AI-powered systems, and analytics that have reshaped global media consumption, broadcasting and visual communication. It was established in 2026 to honor Arun Netravali, who had served as the ninth president of Bell Laboratories (now Nokia Bell Labs, sponsoring the award) and had been well known for his own outstanding contributions in video technology.
At Ambarella, Fermi continues to drive innovation in the video and AI processing realm, aimed at advancing innovations for the next generation of edge endpoints and edge infrastructure. Under his direction, Ambarella has developed a leadership position with its physical AI platform, with systems-on-a-chips integrating AI accelerators, image and video encoding, image signal processing and other system functions.
The IEEE’s global network of over 500,000 engineering and STEM professionals is the world’s largest technical professional organization and is a public charity dedicated to advancing technology for the benefit of humanity.
About Ambarella
With an installed base of more than 42 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
Contact:
Louis Gerhardy
VP Corporate Development
408-636-2310 [email protected]
New quarterly program engages industry research analysts covering edge-AI and physical AI segments, including automotive, edge infrastructure, IoT, physical security and robotics May 21, 2026 09:00 ET | Source: Ambarella
SANTA CLARA, Calif., May 21, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced the launch of its Industry Analyst Briefing Call, a new quarterly program designed to deepen engagement specifically with non-financial industry analysts whose coverage shapes how enterprise buyers, automotive OEMs, and ecosystem partners evaluate edge and physical AI silicon.
The inaugural session will be held on June 4, 2026 at 10 am Pacific / 1 pm Eastern, with Muneyb Minhazuddin, Customer Growth Officer, hosting the session. The briefing is expected to run approximately 45 minutes and will include a moderated question-and-answer segment.
Discussion topics are expected to include Ambarella's edge AI portfolio direction, end-market progression across automotive, edge infrastructure, IoT, physical security and robotics, and the maturing developer ecosystem anchored by the Cooper™ Developer Platform and the Ambarella Developer Zone.
Attendance is by invitation only. Industry research analysts interested in participating in this session can contact [email protected] from a corporate email address.
The Industry Analyst Briefing Call is intended as a recurring quarterly program. Subsequent sessions will be communicated through direct outreach.
About Ambarella
With an installed base of more than 42 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
Contact:
Jonathan Miller
Director, Marketing
408-365-4348 [email protected]
SANTA CLARA, Calif., May 28, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2027 financial results for the period ended April 30, 2026.
Revenue for the first quarter of fiscal 2027 was $100.4 million, up 16.9% from $85.9 million in the same period in fiscal 2026.Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2027 was 58.4%, compared with 60.0% for the same period in fiscal 2026.GAAP net loss for the first quarter of fiscal 2027 was $18.1 million, or loss per diluted ordinary share of $0.41, compared with a GAAP net loss of $24.3 million, or loss per diluted ordinary share of $0.58, for the same period in fiscal 2026.
Financial results on a non-GAAP basis for the first quarter of fiscal 2027 are as follows:
Gross margin on a non-GAAP basis for the first quarter of fiscal 2027 was 59.9%, compared with 62.0% for the same period in fiscal 2026.Non-GAAP net profit for the first quarter of fiscal 2027 was $5.0 million, or earnings per diluted ordinary share of $0.11. This compares with non-GAAP net profit of $3.0 million, or earnings per diluted ordinary share of $0.07, for the same period in fiscal 2026. Based on information available as of today, Ambarella is offering the following guidance for the second quarter of fiscal year 2027, ending July 31, 2026:
Revenue is expected to be between $105.0 million and $111.0 million.Gross margin on a non-GAAP basis is expected to be between 59.0% and 60.5%.Non-GAAP operating expenses are expected to be between $56.0 million and $59.0 million.
Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.
Total cash, cash equivalents and marketable debt securities on hand at the end of the first quarter of fiscal 2027 was $277.8 million, compared with $312.6 million at the end of the prior quarter and $259.4 million at the end of the same quarter a year ago.
“In Q1 we delivered on our key financial guidance while extending our edge AI platform leadership. Automotive revenue achieved a new all-time record due to rapid penetration of AI into commercial vehicles. Demand signals for edge AI remain very strong, and I am optimistic in our ability to serve the market, in particular as AI workloads become more complex. We have a number of new products targeting more advanced AI workloads, all of which command average selling prices (“ASP”) well in-excess of our current ASP.” said Fermi Wang, President & CEO.
“Our edge SoCs integrate all the AI accelerated computing functions (perception, fusion, AI accelerator, CPU and other system functions) together with our algorithms and software into a single SoC,” Dr. Wang added. “Customers are increasingly recognizing our unique capabilities and are requesting broader and deeper relationships, facilitating our development of new markets like edge infrastructure and robotics, while an indirect sales ecosystem can bring us more scale.”
Stock Repurchase
In the first quarter of fiscal year 2027, the company repurchased a total of 47,798 shares for total consideration of approximately $2.4 million. During the second fiscal quarter, Ambarella’s Board of Directors authorized a new $50.0 million repurchase program through June 30, 2027, that will commence when the existing program expires on June 30, 2026. The repurchase program does not obligate the company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the company’s discretion.
Quarterly Conference Call
Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the first quarter of fiscal year 2027 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.
About Ambarella
With an installed base of more than 46 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the second quarter of fiscal year 2027 ending July 31, 2026, and the comments of our CEO relating to demand for edge AI solutions, our ability to serve the edge AI market as it evolves, our ability to command higher prices for our new products, our ability to establish deeper relationships with our customers, our ability to further penetrate the edge infrastructure and robotics markets, and our ability to successfully build an indirect sales channel. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.
The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2026 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC's web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the first quarter of fiscal 2027 ended April 30, 2026 could differ from the preliminary results announced in this press release.
Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.
With respect to its financial results for the first quarter of fiscal year 2027, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the second quarter of fiscal year 2027, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
AMBARELLA, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data)(unaudited) Three Months Ended April 30, 2026 2025 Revenue $100,357 $85,872 Cost of revenue 41,768 34,336 Gross profit 58,589 51,536 Operating expenses: Research and development 58,140 58,819 Selling, general and administrative 19,865 18,575 Total operating expenses 78,005 77,394 Loss from operations (19,416) (25,858) Other income, net 2,083 2,175 Loss before income taxes (17,333) (23,683) Provision for income taxes 760 645 Net loss $(18,093) $(24,328) Net loss per share attributable to ordinary shareholders: Basic $(0.41) $(0.58)Diluted $(0.41) $(0.58)Weighted-average shares used to compute net loss per share attributable to ordinary shareholders: Basic 43,605,282 42,219,972 Diluted 43,605,282 42,219,972 The following tables present details of stock-based compensation and acquisition-related costs included in each functional line item in the condensed consolidated statements of operations above:
Three Months Ended April 30, 2026 2025 (unaudited, in thousands)Stock-based compensation: Cost of revenue$783 $951Research and development 13,714 17,585Selling, general and administrative 7,396 7,594 Total stock-based compensation$21,893 $26,130 Three Months Ended April 30, 2026 2025 (unaudited, in thousands)Acquisition-related costs: Cost of revenue$757 $757Research and development — —Selling, general and administrative 456 456 Total acquisition-related costs$1,213 $1,213 The difference between GAAP and non-GAAP gross margin was 1.5% and 2.0%, or $1.5 million and $1.7 million, for the three months ended April 30, 2026 and 2025, respectively. The differences were due to the effect of stock-based compensation and amortization of acquisition-related costs.
AMBARELLA, INC.RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE(in thousands, except share and per share data) Three Months Ended April 30, 2026 2025 (unaudited)GAAP net loss$(18,093) $(24,328) Non-GAAP adjustments: Stock-based compensation expense 21,893 26,130 Acquisition-related costs 1,213 1,213 Income tax effect 20 14 Non-GAAP net income$5,033 $3,029 GAAP - diluted weighted average shares 43,605,282 42,219,972 Non-GAAP - diluted weighted average shares 43,899,823 42,451,235 GAAP - diluted net loss per share$(0.41) $(0.58)Non-GAAP adjustments: Stock-based compensation expense 0.50 0.62 Acquisition-related costs 0.03 0.03 Income tax effect — — Effect of Non-GAAP - diluted weighted average shares (0.01) — Non-GAAP - diluted net income per share$0.11 $0.07 AMBARELLA, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(unaudited, in thousands) April 30, January 31, 2026 2026 ASSETS Current assets: Cash and cash equivalents$114,443 $191,019 Marketable debt securities 163,357 121,552 Accounts receivable, net 39,175 39,180 Inventories 80,355 52,246 Restricted cash 442 442 Prepaid expenses and other current assets 7,417 5,836 Total current assets 405,189 410,275 Property and equipment, net 12,594 11,553 Intangible assets, net 59,024 58,046 Operating lease right-of-use assets, net 11,510 12,118 Goodwill 303,625 303,625 Other non-current assets 2,896 2,983 Total assets$794,838 $798,600 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 53,278 54,029 Accrued and other current liabilities 92,519 97,964 Operating lease liabilities, current 2,359 2,027 Income taxes payable 1,768 1,531 Deferred revenue, current 17,036 22,393 Total current liabilities 166,960 177,944 Operating lease liabilities, non-current 10,912 11,408 Other long-term liabilities 11,148 14,459 Total liabilities 189,020 203,811 Shareholders' equity: Preference shares — — Ordinary shares 20 19 Additional paid-in capital 951,980 922,119 Accumulated other comprehensive income (loss) (167) 573 Accumulated deficit (346,015) (327,922)Total shareholders’ equity 605,818 594,789 Total liabilities and shareholders' equity$794,838 $798,600 Contact:
Represents Ambarella's Broadest Long-Term Partnership Valued in Excess of $800 Million in Potential Revenue
Groundbreaking long-term agreement among the first in the edge AI market, signaling the industry's accelerating demand for a scalable edge AI platformDecade-long mutual partnership enables both companies to collaborate on the rapid development and proliferation of edge AI across multiple industriesHanwha intends to leverage Hanwha Vision's expertise on vision solutions and cybersecurity together with Ambarella's edge AI platform across Hanwha’s robotics, industrial automation, and life sciences businessesAmbarella's edge AI platform comprises an installed base of more than 46 million units and 12 edge AI SoCs delivering up to hundreds of TOPS of AI inference performance, supporting CNN, generative AI and agentic frameworks, all enabled by the Cooper Development Platform SEONGNAM, South Korea and SANTA CLARA, Calif., May 28, 2026 (GLOBE NEWSWIRE) -- Following the signing of a MoU in March by Fermi Wang, President and CEO of Ambarella, Inc. (NASDAQ: AMBA) and Kim Dong-Seon, Senior Executive Vice President of Hanwha Group, today the companies announced the signing of a long-term agreement (LTA) for the sourcing and co-development of Ambarella edge AI technology across Hanwha product lines and industries. The agreement, with an estimated value in excess of $800 million in potential revenue over a period exceeding ten years, represents one of the largest long-term partnerships in Ambarella's history and one of the first agreements of its kind in the edge AI semiconductor market.
The LTA covers the co-development and deployment of Ambarella and Hanwha Visions's current and next-generation edge AI systems-on-chip (SoCs) and software across Hanwha’s expanding portfolio of intelligent devices and systems, spanning video security, robotics, industrial automation, and life sciences. The multi-generational structure of the agreement is designed to enable both companies to plan jointly across technology roadmaps, accelerate product development cycles, and bring new categories of AI-enabled products to market at scale.
Ambarella's edge AI platform, built on the company's proprietary CVflow AI accelerator architecture, integrates AI inference processing, image signal processing, and video encoding on a single, low-power SoC. With an installed base of more than 46 million AI units, the platform spans 12 edge AI SoCs delivering performance levels suited to applications from compact AI cameras through high-performance multi-sensor perception systems for robotics and autonomous machines. The Cooper Development Platform provides OEMs, ISVs, and application developers with open, scalable tools and resources, accessible through the Ambarella Developer Zone, to build, integrate, and deploy edge AI solutions across these product families. The technologies and applications developed through this LTA are expected to contribute to the broader ecosystem served by Hanwha and Ambarella's global footprint.
Hanwha Vision will retain full proprietary control over the engineering, design, and sourcing for its Wisenet SoC, which the company has developed in-house since the first generation launched in 2010. This agreement with Ambarella extends and complements Hanwha Vision's internal R&D capabilities by integrating Ambarella's edge AI processing with Hanwha Vision's established expertise in image processing, intelligent analytics, and cybersecurity. Furthermore, by establishing a broader ecosystem together, the company will solidify its leadership in Proactive Vision Intelligence solutions.
For Ambarella, the LTA represents one of the company's largest partnership to date. Ambarella reported fiscal year 2026 revenue of $390.7 million, with IoT revenue growing approximately 50% year-over-year, driven by the adoption of edge AI across enterprise security, portable video, and new device categories. The company's IoT product roadmap spans its CV72, CV75, CV7 and N1 SoC families, which support AI inference, image signal processing, and video encoding on a single chip at power levels suited to edge deployment.
"This long-term agreement reinforces Hanwha's investment in intelligent vision solutions and AI technologies across our portfolio," said Kim Dong-seon, Senior Executive Vice President of Hanwha Group. "Combining Hanwha Vision's expertise in image processing, analytics, and cybersecurity with Ambarella's edge AI platform is designed to help our customers and their integration partners deploy a broader range of AI-driven applications tailored to their individual operational requirements."
"We are honored to enter into this long-term agreement with Hanwha, which represents one of the largest partnerships in Ambarella's history," said Dr. Fermi Wang, President and CEO of Ambarella. "This multi-generational partnership has the potential to accelerate the development and delivery of high-performance, AI-enabled products across multiple industries. We expect this agreement to drive substantial multi-year revenue growth consistent with our long-term financial model."
About Ambarella
With an installed base of more than 46 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. For more information, please visit www.ambarella.com.
Ambarella (AMBA), a maker of AI chips for edge computing applications, late Thursday edged above analyst estimates for its fiscal first quarter and with its Q2 guidance. Ambarella stock fell after the report.
The Santa Clara, Calif.-based company earned an adjusted 11 cents a share on sales of $100.4 million in the quarter ended April 30. Analysts surveyed by FactSet had expected earnings of 10 cents a share on sales of $100.1 million. On a year-over-year basis, Ambarella earnings increased 57% while sales climbed 17%.
↑ X NOW PLAYING The AI Inference Pivot: Why 2026 Could Be The Most Complex Chip Cycle In Decades
For the current quarter ending July 31, Ambarella forecast sales of $108 million, based on the midpoint of its guidance. Analysts were modeling revenue of $107.1 million in the fiscal second quarter. In the same quarter last year, Ambarella posted sales of $95.5 million.
"In Q1 we delivered on our key financial guidance while extending our edge AI platform leadership," Chief Executive Fermi Wang said in a news release. "Automotive revenue achieved a new all-time record due to rapid penetration of AI into commercial vehicles."
"Customers are increasingly recognizing our unique capabilities and are requesting broader and deeper relationships, facilitating our development of new markets like edge infrastructure and robotics," Wang said.
Ambarella Stock Slips After Report In after-hours trading on the stock market today, Ambarella stock sank more than 1% 90.51. During the regular session Thursday, it rose 1.4% to close at 91.84.
Ambarella stock has formed a cup base with a buy point of 96.69, according to IBD MarketSurge charts.
Ambarella's SoCs integrate a central processing unit and AI accelerator with perception and other functions.
To date, Ambarella has shipped more than 46 million AI system-on-chip units. Applications for Ambarella's edge computing chips include automotive video sensors, surveillance cameras, aerial drones and robotic vision.
Edge computing refers to processing done at the outer edge of networks where data is created and consumed.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
MarketBeat Week in Review – 09/01 - 09/05Ambarella NASDAQ: AMBA reported fiscal first-quarter results that landed within its guidance ranges, while management emphasized growing momentum in edge artificial intelligence, automotive telematics and new long-term customer agreements.
President and CEO Fermi Wang said the company delivered revenue, gross margin and operating expenses in line with its key financial targets for the quarter ended April 30, 2026. He said demand signals for edge AI remain “very strong” and that Ambarella is entering a new phase of market development through long-term agreements that could provide more predictable revenue over time.
Get Ambarella alerts:
Ambarella's Earnings Prove Its Edge AI Strategy Is a Winner“As a recognized edge AI leader, we are entering a new and significant phase for our market development with the execution of long-term customer agreements,” Wang said.
Quarterly Results and Outlook CFO John Young said fiscal first-quarter revenue was $100.4 million, slightly above the midpoint of the company’s prior guidance range of $97 million to $103 million. Revenue declined 0.5% sequentially and rose 16.9% from a year earlier.
5 Stocks to Buy and Hold for the Rise of Physical AINon-GAAP gross margin was 59.9%, also slightly above the midpoint of guidance, while non-GAAP operating expenses were $56.4 million, slightly below the midpoint of the company’s forecast. Ambarella reported non-GAAP net profit of $5 million, or $0.11 per diluted share.
Young said automotive revenue rose at a strong double-digit rate sequentially, driven by commercial vehicles, while IoT revenue was seasonally lower. IoT represented about three-quarters of total revenue, Wang said, with enterprise security cameras growing in the high single digits sequentially, offset by a double-digit sequential decline in consumer IoT.
For the fiscal second quarter, Ambarella forecast revenue of $105 million to $111 million, with a midpoint of $108 million. Young said both automotive and IoT revenue are expected to increase sequentially, with growth in consumer and capital-expenditure-driven markets. The company expects non-GAAP gross margin of 59% to 60.5% and non-GAAP operating expenses of $56 million to $59 million.
Long-Term Agreements Take Center Stage A major focus of the call was Ambarella’s expanding use of long-term agreements, or LTAs, with customers. Wang said such agreements typically involve multi-year commitments around volume and pricing and may include standard products or semi-custom AI system-on-chips tailored to specific workloads.
Ambarella announced an LTA with Hanwha in South Korea covering the sourcing and co-development of Ambarella’s edge AI technology across Hanwha product lines and industries, including physical security, operational automation, life sciences, robotics and other industrial markets. Wang said the agreement has potential revenue exceeding $800 million over more than 10 years and is one of the largest agreements in Ambarella’s history.
In response to an analyst question, Wang said Ambarella has had a relationship with Hanwha for 15 years and expects to gain share through the new agreement. Louis Gerhardy, vice president of corporate development, described Hanwha as a major multinational conglomerate with more than $60 billion in annual revenue and said a key part of the relationship is expanding beyond the companies’ existing physical security business.
Wang also discussed a separate LTA involving Ambarella’s first 2-nanometer chip, a semi-custom edge AI SoC called CV8, which taped out in January. He said that chip will serve consumer and enterprise IoT endpoint markets and is expected to begin production in the first half of fiscal 2028.
Automotive and Telematics Revenue Hits Record Wang said Ambarella’s automotive revenue reached an all-time quarterly record in the first quarter and is on pace to set a fiscal-year record. He said growth was led by the emergence of AI in commercial vehicle telematics and automotive safety applications.
While third-party research firms expect global automotive production to decline 1% to 2% this year and automotive semiconductor market growth of 10% to 15%, Wang said Ambarella expects its automotive revenue to outpace those figures. In response to Deutsche Bank analyst Ross Seymore, Wang said the company continues to expect full-year automotive growth of 10% to 15%.
Gerhardy said the telematics market includes about 100 million subscribers and is growing at roughly a 10% compound annual rate, citing third-party research firms. He said only about 15% to 20% of that base uses AI and AI video as an additional feature, creating an opportunity for more sophisticated AI workloads and higher chip demand.
Wang also highlighted customer activity in the quarter, including Lytx designing Ambarella’s CV75 and CV72 chips into multiple platforms. He also cited automotive safety design wins with South Korea-based Yura and a Western original equipment manufacturer in China.
Robotics, Edge Infrastructure and AI Platform Expansion Ambarella said it now has more than 15 robotics design wins, including aerial drones, with lifetime revenue exceeding $100 million, along with more than 30 customers in its robotics pipeline. Wang said the company’s chips are being used across applications including industrial automation, autonomous mobile robots and delivery robots.
Wang said robotics design wins are largely based on Ambarella’s CV product line, with most tied to 5-nanometer products, though some include 10-nanometer and 4-nanometer products. He said the company is focused on perception, sensor fusion and decision-making functions within robotic systems.
Ambarella also continues to build its edge infrastructure business. Wang said the company has customer engagements and design wins for its N1-655 edge AI SoC, with the first related products expected in the second half of the year. Gerhardy said current products address a serviceable available market of a couple hundred million dollars for applications such as AI vision boxes.
Wang said Ambarella has cumulatively shipped more than 46 million edge AI SoCs and has 12 edge AI SoCs available. He said the company’s software platform supports more than 200 AI model architectures that have reached production.
Balance Sheet, Inventory and Buybacks Ambarella ended the quarter with $277.8 million in cash and marketable securities, down $34.8 million from the prior quarter but up $18.4 million from the year-earlier period. Young said the sequential decline was primarily due to higher inventory levels to support new product cycles.
Days of inventory rose to 145 from 99 in the prior quarter. Management said the inventory build reflected efforts to better serve customers and protect against supply-chain constraints. Wang said the company had been informed that supply from “Senso” was getting tighter and that Ambarella viewed the inventory build as prudent.
The company repurchased 47,798 shares during the quarter for $2.4 million at an average price of $51.04 per share. Young said Ambarella’s board authorized a new $50 million repurchase program valid through June 30, 2027, replacing a program set to expire June 30, 2026.
Wang said Ambarella continues to expect its long-term gross margin model to remain in a range of 59% to 62% as its business mix evolves across automotive, IoT, robotics and edge AI infrastructure.
About Ambarella NASDAQ: AMBAAmbarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella's platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.
Ambarella's product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Ambarella Right Now?Before you consider Ambarella, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ambarella wasn't on the list.
While Ambarella currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
Ambarella (AMBA - Free Report) came out with quarterly earnings of $0.11 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this video-compression chipmaker would post earnings of $0.1 per share when it actually produced earnings of $0.13, delivering a surprise of +30%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Ambarella, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $100.36 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $85.87 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ambarella shares have added about 27.9% since the beginning of the year versus the S&P 500's gain of 9.9%.
What's Next for Ambarella?While Ambarella has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ambarella was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $108.32 million in revenues for the coming quarter and $0.74 on $441.61 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Broadcom Inc. (AVGO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This chipmaker is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +51.9%. The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level.
Broadcom Inc.'s revenues are expected to be $22.04 billion, up 46.9% from the year-ago quarter.
Key Takeaways Ambarella posted Q1 non-GAAP EPS of 11 cents on $100.4M revenues, up 16.9% year over year.AMBA said automotive revenues hit a record, led by telematics and safety demand in commercial vehicles.Ambarella's Hanwha deal could top $800M in revenues over 10 years. Also initiates a new $50M share buyback. Ambarella, Inc. (AMBA - Free Report) delivered non-GAAP earnings of 11 cents per share in the first quarter of fiscal 2027, in line with the Zacks Consensus Estimate. Quarterly earnings jumped 57% year over year, mainly driven by higher revenues and disciplined cost management.
First-quarter revenues soared 16.9% year over year to $100.4 million. The top line also came marginally ahead of the consensus mark of $100.2 million.
First-quarter performance reflected steady execution against guidance and a business mix supported by record automotive momentum and expanding customer engagements around edge AI. Non-GAAP gross margin was 59.9% in the period, providing a firm profitability baseline as new product cycles ramp up.
AMBA’s Revenue Mix Shows IoT Scale With Auto StrengthDuring the first-quarter earnings call, management stated that Internet of Things (IoT) applications represented about three-fourths of total revenues, with seasonality weighing on consumer IoT, while enterprise security camera demand grew at a high-single-digit sequential pace. This mix underscores Ambarella’s continued leverage to edge AI adoption in security endpoints, even as parts of consumer demand fluctuate.
Automotive, meanwhile, set a new quarterly revenue record, driven by strong double-digit growth tied to commercial vehicle telematics and safety applications. The company highlighted that AI penetration remains early in a large installed telematics base, supporting continued content gains as customers push toward more sensors and more complex on-device workloads.
Ambarella Leans on Edge AI Complexity and Platform DepthAmbarella framed the broader market backdrop as a shift from centralized AI training toward distributed inferencing, with more processing moving to the edge. During the earnings call, the company emphasized the benefits of edge AI, including reduced latency, lower power consumption and stronger privacy and security, positioning these attributes as structural tailwinds as workloads become more demanding.
A key strategic point was Ambarella’s focus on integrating accelerated computing functions into a single system-on-chip platform, rather than relying on a collection of discrete components. Management tied that integration to a widening set of use cases, including GenAI and agentic AI at the edge, where power efficiency and tightly coupled software tools can be decisive differentiators for customers building production deployments.
AMBA’s Long-Term Pacts Add Visibility and Scale PotentialA major development in the first quarter was the announcement of another material long-term agreement, this time with Hanwha in South Korea. The company stated during the earnings call that the agreement has the potential to generate more than $800 million in revenues over a period exceeding 10 years and extends beyond physical security into areas such as operational automation, life sciences and robotics.
Beyond the headline figure, management characterized long-term agreements as multi-generational commitments that can include structured volume and pricing over five years or more, improving revenue predictability and reducing volatility. The company also indicated that these partnerships can involve non-recurring engineering support to help fund platform development across silicon and software, aligning customer road maps with Ambarella’s broader product strategy.
Ambarella’s Profit Model Improves, GAAP Results Still RedOn a GAAP basis, gross margin was 58.4%, down from 60% in the year-ago quarter. Non-GAAP gross margin contracted 210 basis points to 59.9% in the first quarter.
However, Ambarella posted a GAAP net loss of $18.1 million, narrower than the year-ago quarter’s loss of $24.3 million. On a non-GAAP basis, the company reported net profit of $5 million, 66.7% higher than the year-ago quarter’s net profit of $3 million.
Cost discipline was evident relative to guidance, with non-GAAP operating expenses coming in at $56.4 million, slightly below the midpoint of management’s guidance range of $55-$58 million. Management continues to view the company’s long-term gross margin model as 59% to 62%, suggesting confidence that product mix evolution and platform leverage can support margins even as the business expands into new edge AI categories.
Ambarella’s Cash Balance Declines on Inventory BuildAmbarella ended the first quarter with $277.8 million in cash, cash equivalents and marketable securities, down from $312.6 million at the end of the previous quarter as inventory levels increased to support multiple new product cycles. The company described the inventory build as a move to better service customers amid tightening supply dynamics, with days of inventory rising meaningfully during the period.
During the first quarter, Ambarella used $25.6 million in cash for operational activities and ended the quarter with a negative free cash flow of $29.6 million. It repurchased shares worth $2.4 million during the quarter.
Concurrent with the first-quarter results, Ambarella announced that management has approved a new share repurchase program worth $50 million. This new authorization extends through June 30, 2027 and will commence as soon as the company's existing repurchase program expires on June 30, 2026.
Ambarella Initiates Q2 GuidanceAMBA forecasts second-quarter fiscal 2027 revenues between $105 million and $111 million. It expects automotive and IoT revenues to increase sequentially, with growth in both consumer and CapEx-driven markets. The Zacks Consensus Estimate for second-quarter revenues is pinned at $108.3 million, indicating a year-over-year rise of 13.4%.
For the second quarter, the non-GAAP gross margin is anticipated in the range of 59-60.5%. Non-GAAP operating expenses are projected in the range of $56-$59 million.
The consensus mark for second-quarter non-GAAP earnings per share is pinned at 17 cents.
AMBA’s Zacks Rank and Stocks to ConsiderCurrently, Ambarella carries a Zacks Rank #3 (Hold).
FormFactor (FORM - Free Report) , ASE Technology (ASX - Free Report) and Diodes (DIOD - Free Report) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. FormFactor, ASE Technology and Diodes each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FormFactor’s 2026 earnings has moved upward by 30.4% over the past seven days to $2.40 per share, calling for an increase of 84.6% year over year. FormFactor shares have climbed 133.5% year to date (YTD).
The Zacks Consensus Estimate for ASE Technology’s full-year 2026 earnings is pegged at $1.05 per share, revised upward by 36.4 over the past 30 days and suggests a year-over-year jump of 84.2%. ASE Technology shares have soared 153.8% YTD.
The Zacks Consensus Estimate for Diodes’ 2026 earnings has been revised upward by 5.3% to $2.58 per share over the past 30 days. The consensus mark for earnings indicates a year-over-year increase of 111.5%. Diodes shares have surged 122.8% YTD.
Ambarella stock is showing notable weakness. What’s behind AMBA decline? Q1 Results Top EstimatesAmbarella reported earnings of 11 cents per share, edging past the 10 cent consensus estimate and improving sharply from the 7 cents it posted a year earlier. Revenue for the quarter came in at nearly $100.36 million, slightly above the approximately $100.14 million analysts were looking for and up nearly 17% from the same period last year. The company's official release from Santa Clara noted that total revenue for the quarter was $100.4 million.
On a non‑GAAP basis, gross margin was 59.9%, compared with 62% last year, and non‑GAAP net income reached $5 million, or 11 cents per share, up from $3 million and 7 cents per share a year earlier.
Ambarella ended the quarter with $277.8 million in cash, cash equivalents and marketable debt securities, down from $312.6 million in the prior quarter but above the $259.4 million it held at the same time last year.
CEO Fermi Wang said the company met its financial targets while continuing to strengthen its edge AI platform. He highlighted record automotive revenue driven by rapid adoption of AI in commercial vehicles and expressed confidence in the company's ability to support increasingly complex AI workloads with new products that carry higher average selling prices.
Q2 Guidance Pressures The StockDespite the solid first-quarter performance, the stock is under pressure because the company's second‑quarter revenue forecast did not meet expectations at the midpoint. Ambarella projected second-quarter sales between $105 million and $111 million, while analysts were looking for roughly $107.4 million.
The company also expects non‑GAAP gross margin to land between 59% and 60.5% and anticipates non‑GAAP operating expenses between $56 million and $59 million.
AMBA Shares Are DroppingAMBA Price Action: Ambarella shares were down 20.27% at $73.22 at the time of publication on Friday, according to Benzinga Pro.
Image: Sundry Photography/Shutterstock
Market News and Data brought to you by Benzinga APIs
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Ambarella (AMBA - Free Report) Headquartered in Santa Clara, CA, Ambarella Inc. develops video compression and image processing semiconductors, which enables high-definition or HD video capture, share and display.
AMBA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. AMBA has a Momentum Style Score of A, and shares are up 7% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $0.75 per share. AMBA boasts an average earnings surprise of +52.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AMBA should be on investors' short list.
MarketBeat Week in Review – 09/01 - 09/05Ambarella NASDAQ: AMBA Chief Executive Officer Fermi Wang said the company’s edge AI opportunity is built around a broad silicon roadmap and a mature software stack that can help customers move quickly from application development to products.
Speaking with BofA semiconductor analyst Vivek Arya at the BofA Global Technology Conference, Wang said Ambarella’s differentiation comes from designing chips “algorithm-first,” with the company optimizing silicon and software around embedded AI workloads rather than relying on more general-purpose architectures.
Get Ambarella alerts:
Ambarella's Earnings Prove Its Edge AI Strategy Is a Winner“We think about application,” Wang said, adding that Ambarella focuses on power efficiency, die size, performance and video quality for target edge AI use cases. He said the company’s approach allows it to compete with larger semiconductor companies in selected markets despite its smaller scale.
Automotive Expected to Reach Record Revenue This Year Wang said Ambarella expects automotive revenue to set a record this year, helped by growth outside the most-discussed autonomous driving applications. He pointed to commercial fleet opportunities, including telematics, fleet management, driver monitoring systems and related applications, as an increasingly solid growth engine.
5 Stocks to Buy and Hold for the Rise of Physical AIIn IoT, Wang identified robotics and drones as important opportunities, while cautioning that many robotics markets remain segmented and will take time to develop. In the nearer term, he said drones represent one of the largest robotics opportunities for Ambarella, particularly where products require perception, sensor fusion and decision-making capabilities similar to those used in autonomous driving.
Wang also highlighted what he called “edge infrastructure,” where customers aggregate feeds from multiple sensors or cameras into an appliance that can add generative AI capabilities without replacing existing equipment. He gave the example of a hotel using an appliance to process feeds from traditional cameras and enable AI functions across them.
Growth Outlook Tied to Edge AI Adoption Asked how investors should think about Ambarella’s growth over the next three to five years, Wang said data center AI growth rates of 30% to 50% should not be applied to edge AI markets. He said Ambarella’s served available market is currently growing at about 18%, while the company’s guidance for this year is 10% to 15% growth. Wang also noted that some analysts are modeling about 15% growth next year.
Wang said Ambarella should be able to grow faster than its served available market over time, but added that the market is still waiting for silicon, software, customer applications and AI models to come together to enable new categories of edge AI products.
He said performance per watt will be a key metric for generative AI applications at the edge, especially for battery-powered devices. Wang described customer requirements that include 8K video at 60 frames per second with AI processing within a roughly 4-watt system power envelope, saying Ambarella is among the few suppliers able to address such constraints.
Hanwha Agreement Seen as Strategic Opportunity Wang discussed Ambarella’s long-term agreement with Hanwha, describing the South Korean conglomerate as a diversified company with businesses including retail, banking, drones, robots and security cameras. He said Hanwha Vision, an Ambarella customer for about 15 years, evaluated AI solutions that could potentially be used more broadly across the Hanwha group.
Wang said Hanwha was looking for a product portfolio broad enough to address multiple opportunities and software mature enough to enable different applications quickly. He said those requirements aligned with Ambarella’s strengths.
In response to Arya’s reference to an $800 million opportunity over 10 years, Wang said Hanwha Vision currently represents a mid-single-digit percentage of Ambarella’s total revenue. He said Ambarella has less than 50% share of Hanwha Vision’s existing opportunity and could increase share, while newer chips could carry higher average selling prices.
Wang said the agreement could also help Ambarella support more applications across Hanwha by using Hanwha Vision’s camera products with different software and models. He said the company expects some positive revenue impact next year, though not an immediate step up to a much higher level.
Supply, Inventory and Margin Commentary Wang said Ambarella’s 10% to 15% growth outlook is not limited by the company’s own supply. However, he said memory market conditions remain a concern for customers, as DRAM remains available but has become “extremely expensive.” He said customers may eventually need to pass higher memory costs on to their own customers, creating uncertainty around demand and supply availability.
On inventory, Wang said recent increases reflect both supply tightness and preparation for customer ramps. He said Samsung informed Ambarella that foundry supply could be tight next year, especially on 4-nanometer and 5-nanometer process nodes, and asked for purchase order commitments to secure capacity.
Wang said Ambarella’s gross margin guidance remains within its long-term range of 59% to 62%, with the current quarter guided at 59.75%, the same as the prior two quarters. He said product mix is the largest driver of margin changes, while some parts of the supply chain have raised prices, though not yet enough for Ambarella to decide to pass costs through to customers.
CV8, Drones and Software Platform Wang said Ambarella’s first 2-nanometer chip, called CV8, taped out in January and is expected back in the company’s office within weeks. He said the company’s plan is for the chip to be ready for potential customer production in the second quarter of next year, subject to testing and customer readiness. He also said CV7, the company’s first 4-nanometer chip, is expected to ramp next year.
On drones, Wang said U.S. restrictions on some Chinese drone manufacturers have not yet translated into a major volume shift, partly because many drones already in the market have existing approvals. However, he said the changes should help U.S. suppliers over time. Ambarella has discussed 15 robotics design wins, including several drone wins, with a cumulative revenue pipeline of about $100 million, he said.
Wang also emphasized Ambarella’s Cooper Developer Platform, which he said took five years to develop and is used by nearly all of the company’s customers. He said the software supports about 200 model architectures and makes it easier for customers to move software across Ambarella chips with different performance levels. Wang said the platform is also important as Ambarella expands through indirect sales channels, including software partners, distributors and system integrators.
About Ambarella NASDAQ: AMBAAmbarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella's platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.
Ambarella's product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Ambarella Right Now?Before you consider Ambarella, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ambarella wasn't on the list.
While Ambarella currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.
