Ambarella’s Promising Edge AI Expansion Drives Buy Rating

Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Ambarella (AMBA – Research Report), with a price target of $80.00.

Christopher Rolland has given his Buy rating due to a combination of factors including Ambarella’s strong performance in the Edge AI market and its promising future prospects. The company has shown impressive results with its Edge AI SoCs, leading to a significant increase in its FY26 revenue guidance. This growth is driven by the continued adoption of AI technologies, which now account for a substantial portion of the company’s revenue.
Moreover, Ambarella is expanding its market opportunities by venturing into Edge AI infrastructure, which could further enhance its revenue potential. The company’s strategic moves into new applications beyond its core security market, including automotive and IoT sectors, demonstrate its ability to diversify and capitalize on emerging trends. Despite some concerns about slower sequential growth in the latter half of the year, the overall outlook remains positive, supported by management’s cautious yet optimistic guidance.

In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $80.00 price target.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMBA in relation to earlier this year.