Ambarella (AMBA) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 916.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 44.54%
• EPS Growth: 41.55%
• Country: US
• Employees: 941
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 0.07
• Shares Outstanding: 42,414,085
• 10 Day Avg. Volume: 540,916
• 30 Day Avg. Volume: 916,629
• PEG Ratio: -2.23
• Price to Book (P/B): 4.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.44
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 14.09
• Enterprise Value/Ebitda: -5.61
• 1Y Price Target: $79.75
• Price Target Upside: 20.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 59 Neutral
• Price Target: $65.00 ▼(-1.65%Downside)

Ambarella's overall stock score is primarily influenced by strong earnings call performance and technical strength. However, financial performance challenges and high valuation risks weigh down the score. The company's successful AI strategy and product diversification are positives, but geopolitical risks and ongoing losses remain concerns.

Positive Factors

Automotive Market Performance

AMBA's wins with some of the most important tier one automotive companies in the ADAS space (Continental and Bosch) clearly show the capability.

Revenue Growth

AI drove upside as Ambarella once again achieved record AI revenue.

Negative Factors

Growth Prospects

A key opportunity for a domain controller for a major tier one, believed to be Volkswagen, did not come to fruition.

Guidance Concerns

The raised FY26 guidance implies slower growth in the third and fourth quarters and a larger than seasonal decline in the fourth quarter.

Ambarella Business Overview & Revenue Model

Company Description

Ambarella, Inc. is a technology company that specializes in the development of high-definition and ultra-high-definition video compression and image processing semiconductors. The company serves various sectors, including security, automotive, and consumer electronics, by providing solutions that enable superior video quality and advanced analytics capabilities in cameras, drones, and other devices. Ambarella's innovative system-on-chip (SoC) products are designed to deliver high performance, low power consumption, and compact form factors.

How the Company Makes Money

Ambarella makes money primarily through the sale of its semiconductor products, which are integrated into a wide range of devices that require video processing and analytics capabilities. Its key revenue streams include selling system-on-chip (SoC) solutions to manufacturers in the security camera, automotive, and consumer electronics industries. The company also earns revenue from licensing its video processing and computer vision technologies to other companies. Significant partnerships with original equipment manufacturers (OEMs) and technology companies enhance its market reach and contribute to its earnings. Additionally, Ambarella invests in research and development to maintain its competitive edge in providing cutting-edge video processing solutions.

Ambarella Financial Statement Overview

Summary

Ambarella faces significant operational challenges with persistent net losses, affecting overall financial health. Revenue growth and cash flows show positive trends, but profitability remains elusive. The balance sheet is a strength with low leverage and solid equity support.

Income Statement

Ambarella's income statement shows a significant net loss and negative EBIT and EBITDA margins, indicating operational challenges. The TTM revenue shows improvement, but the net profit margin remains negative. Revenue growth is volatile with recent improvement, but sustained profitability remains uncertain.

Balance Sheet

The balance sheet is relatively strong, with a low debt-to-equity ratio suggesting prudent leverage. The equity ratio is healthy, showing strong shareholder investment relative to assets. However, ongoing losses may pressure equity over time.

Cash Flow

Ambarella shows positive operating and free cash flow, improving its cash position. However, the free cash flow to net income ratio is skewed due to persistent net losses. Cash flow management is a positive, but profitability remains a key concern.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	284.87M	226.47M	337.61M	331.86M	222.99M
Gross Profit	172.33M	136.82M	208.93M	208.13M	135.57M
EBITDA	-100.53M	-129.75M	-54.32M	-14.63M	-49.20M
Net Income	-117.13M	-169.42M	-65.39M	-26.41M	-59.79M
Balance Sheet
Total Assets	688.97M	657.65M	710.20M	657.54M	573.28M
Cash, Cash Equivalents and Short-Term Investments	250.26M	219.93M	206.86M	171.04M	440.71M
Total Debt	5.26M	5.34M	8.64M	11.71M	10.44M
Total Liabilities	127.56M	97.78M	104.11M	110.37M	98.30M
Stockholders Equity	561.41M	559.87M	606.09M	547.18M	474.98M
Cash Flow
Free Cash Flow	23.45M	7.05M	29.04M	29.12M	25.86M
Operating Cash Flow	33.84M	19.02M	44.09M	38.80M	30.80M
Investing Cash Flow	-40.53M	7.84M	-107.30M	-119.55M	-31.32M
Financing Cash Flow	6.40M	4.51M	5.70M	10.53M	10.40M

Ambarella Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 66.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBA, the sentiment is Neutral. The current price of 66.09 is below the 20-day moving average (MA) of 67.61, above the 50-day MA of 62.04, and above the 200-day MA of 62.54, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 18.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMBA.

Ambarella Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	75 Outperform	$4.29B	35.62	24.82%	1.39%	32.63%	46.16%
SIMO	70 Outperform	$2.60B	32.21	10.16%	2.60%	10.78%	58.82%
IPGP	66 Neutral	$3.19B	―	-9.17%	―	-20.08%	-218.29%
SMTC	60 Neutral	$4.43B	―	-93.41%	―	13.83%	88.14%
AMBA	59 Neutral	$2.80B	―	-18.35%	―	44.54%	41.55%
Sector *	57 Neutral	$815.27M	11.36	-16.80%	2.65%	10.29%	-42.67%
SLAB	52 Neutral	$4.29B	―	-14.77%	―	2.16%	-55.38%

Ambarella Corporate Events

Ambarella Holds 2025 Annual Shareholders Meeting

On June 4, 2025, Ambarella, Inc. held its 2025 Annual Meeting of Shareholders, with approximately 85.05% of outstanding shares represented. During the meeting, three Class I directors were elected to serve until the 2028 annual meeting, and the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026, was ratified. Additionally, shareholders approved the executive compensation on a non-binding, advisory basis.

The most recent analyst rating on (AMBA) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Ambarella stock, see the AMBA Stock Forecast page.