Ambarella (AMBA) AI Stock Analysis

• Market Cap: $2.81B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• 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: 86
• Industry: Semiconductors
• EPS (TTM): 0.07
• Shares Outstanding: 42,414,085
• 10 Day Avg. Volume: 1,677,605
• 30 Day Avg. Volume: 1,267,231
• PEG Ratio: -2.06
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 52.99
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 13.11
• Enterprise Value/Ebitda: -5.23
• 1Y Price Target: $78.50
• Price Target Upside: 18.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 59 Neutral
• Price Target: $65.00 ▼(-1.78%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 Presence

Ambarella disclosed wins in the automotive market across China, Japan, Korea, and the U.S., highlighting its expanding presence.

Earnings Performance

Ambarella posted better results and guidance, driven by continued adoption of Edge AI SoCs and ASP tailwinds.

Market Expansion

Ambarella is expanding its market by venturing into Edge AI infrastructure, aiming to serve customers with video management servers.

Negative Factors

Automotive Challenges

Commercializing that capability has proven to be a challenge, particularly in the automotive supply chain which is very risk-averse.

Competitive Scale

AMBA's relatively smaller scale compared to larger competitors is a weakness in the bidding process for Auto programs.

Growth Guidance

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	316.26M	284.87M	226.47M	337.61M	331.86M	222.99M
Gross Profit	190.71M	172.33M	136.82M	208.93M	208.13M	135.57M
EBITDA	-103.70M	-100.53M	-129.75M	-54.32M	-14.63M	-49.20M
Net Income	-103.52M	-117.13M	-169.42M	-65.39M	-26.41M	-59.79M
Balance Sheet
Total Assets	701.92M	688.97M	657.65M	710.20M	657.54M	573.28M
Cash, Cash Equivalents and Short-Term Investments	259.39M	250.26M	219.93M	206.86M	171.04M	440.71M
Total Debt	4.39M	5.26M	5.34M	8.64M	11.71M	10.44M
Total Liabilities	129.20M	127.56M	97.78M	104.11M	110.37M	98.30M
Stockholders Equity	572.72M	561.41M	559.87M	606.09M	547.18M	474.98M
Cash Flow
Free Cash Flow	49.77M	23.45M	7.05M	29.04M	29.12M	25.86M
Operating Cash Flow	63.59M	33.84M	19.02M	44.09M	38.80M	30.80M
Investing Cash Flow	-58.81M	-40.53M	7.84M	-107.30M	-119.55M	-31.32M
Financing Cash Flow	5.14M	6.40M	4.51M	5.70M	10.53M	10.40M

Ambarella Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBA, the sentiment is Positive. The current price of 66.18 is above the 20-day moving average (MA) of 57.36, above the 50-day MA of 55.87, and above the 200-day MA of 61.30, indicating a bullish trend. The MACD of 2.90 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMBA.

Ambarella Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	77 Outperform	$3.99B	33.11	24.82%	1.52%	32.63%	46.16%
SIMO	70 Outperform	$2.50B	26.59	12.33%	2.69%	10.78%	58.82%
SLAB	64 Neutral	$4.97B	―	-14.77%	―	2.16%	-55.38%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
SMTC	62 Neutral	$3.81B	―	-93.41%	―	13.83%	88.14%
AMBA	59 Neutral	$2.81B	―	-18.35%	―	44.54%	41.55%
IPGP	58 Neutral	$3.12B	―	-9.17%	―	-20.08%	-218.29%

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.

Ambarella Director Anne De Greef-Safft to Depart

On April 2, 2025, Anne De Greef-Safft informed Ambarella, Inc. that she will not stand for re-election to the Board of Directors at the Company’s 2025 annual meeting of shareholders, when her term will expire. Her decision was based on personal reasons, and she has no dispute with the company. The company expressed gratitude for her service.