Christopher Rolland, an analyst from Susquehanna, reiterated the Buy rating on Ambarella. The associated price target was raised to $100.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Christopher Rolland has given his Buy rating due to a combination of factors that highlight Ambarella’s strong performance and future potential. The company has shown significant growth in its Edge AI segment, with a notable increase in shipments of AI processors, reaching over 36 million units. This growth is expected to continue, with Edge AI projected to account for approximately 80% of Ambarella’s total revenue by FY26, indicating a 50% increase from FY25.
Furthermore, Ambarella has expanded its opportunities in the IoT sector, particularly in portable video, robotic aerial drones, and edge infrastructure. The company’s recent wins, including a significant volume application in autonomous aerial drones and a new Edge AI infrastructure deal, underscore its potential for further growth. Despite some challenges in gross margins and operating expenses, the overall positive outlook and the increase in the FY26 revenue guidance support Rolland’s decision to raise the price target from $90 to $100, reinforcing the Buy rating.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 77 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.