Joseph Moore, an analyst from Morgan Stanley, maintained the Buy rating on Ambarella (AMBA – Research Report). The associated price target remains the same with $90.00.
Joseph Moore has given his Buy rating due to a combination of factors including Ambarella’s strong performance in the IoT sector and the demand for Edge AI products. Despite geopolitical uncertainties and potential setbacks with OEM partnerships, Ambarella’s technology portfolio holds significant strategic value.
The company reported robust quarterly results, driven by the success of its CV5 and CV7 platforms, which managed to offset seasonal weaknesses. While the automotive sector remains challenging, Ambarella’s ADAS platform is expected to contribute to future growth. Although there are concerns about tariffs and inventory dynamics in the latter half of the year, the IoT segment is projected to outpace automotive growth, supporting the positive outlook for Ambarella’s stock.
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.