Analyst Quinn Bolton of Needham maintained a Buy rating on Ambarella, retaining the price target of $100.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Ambarella’s positive growth trajectory. The company has raised its fiscal year 2026 revenue outlook, projecting a year-over-year increase of 36-38%, which is an improvement from the previous forecast. This optimistic outlook is driven by the rising demand for edge AI applications, which has been a significant growth area for Ambarella.
Despite a lower-than-expected gross margin due to a shift towards higher volume customers, the company’s revenue, operating income, and EPS estimates have all been revised upwards for the fourth quarter of fiscal year 2026. Additionally, Ambarella has secured over a dozen design wins in the automotive and IoT sectors, further supporting its growth prospects. The 12-month price target remains at $100, supported by a discounted cash flow model with a 30x terminal P/E multiple and a 10% discount rate.
According to TipRanks, Bolton is a top 100 analyst with an average return of 28.7% and a 54.51% success rate. Bolton covers the Technology sector, focusing on stocks such as Ambarella, Super Micro Computer, and Nvidia.