Ambarella (AMBA)
NASDAQ:AMBA
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Ambarella
(NASDAQ:AMBA)
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Rating:59Neutral
Price Target:
$57.00
▲(12.78% Upside)
Action:ReiteratedDate:03/24/26
AMBA scores as a balanced setup: strong margins, low leverage, and consistently positive cash flow support the business, and earnings-call guidance and product momentum are encouraging. Offsetting these positives are ongoing GAAP losses and weak technicals (price below major moving averages with negative MACD), with limited valuation support due to a negative P/E.
Positive Factors
Sustained High Gross Margins
Consistently high gross margins (near 60%) reflect durable product economics and pricing power for Ambarella's AI SoCs. This margin profile supports reinvestment in R&D, funds scaling of new nodes, and provides buffer versus component cost pressure, aiding long-term profitability as revenue grows.
Negative Factors
Persistent GAAP Losses
Ambarella's ongoing GAAP operating and net losses mean returns on equity remain negative, constraining capital returns and raising the bar for sustained profitability. Until GAAP profits are consistent, investor and capital-market confidence and optionality for capital allocation may be limited.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained High Gross Margins
Consistently high gross margins (near 60%) reflect durable product economics and pricing power for Ambarella's AI SoCs. This margin profile supports reinvestment in R&D, funds scaling of new nodes, and provides buffer versus component cost pressure, aiding long-term profitability as revenue grows.
Read all positive factors
Ambarella (AMBA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend YieldN/A
Average Volume (3M)973.70K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth48.08%
EPS Growth51.23%
CountryUS
Employees941
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.13
Shares Outstanding43,788,880
10 Day Avg. Volume722,804
30 Day Avg. Volume973,698
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)4.60
Price to Sales (P/S)7.00
P/FCF Ratio47.15
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue5.26
Enterprise Value/Gross Profit8.89
Enterprise Value/Ebitda-29.74
Forecast
1Y Price Target
$88.00Price Target Upside74.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.61
Revenue Forecast (FY)$428.46M
Ambarella Business Overview & Revenue Model
Company Description
Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. The company's system-on-a-chip designs integrated HD video proces...
How the Company Makes Money
Ambarella makes money primarily by selling its semiconductor products (SoCs and related components) to device manufacturers and original design manufacturers (ODMs) that incorporate Ambarella chips into end products (e.g., security cameras, automo...
Ambarella Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Ambarella is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Ambarella is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAmbarella Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call highlighted strong commercial and technical momentum: record revenue (+37% YoY), robust HAI growth (+50% YoY), multiple customer design wins, new 5nm/4nm product ramps, return to non-GAAP profitability, and healthy cash generation. Offsetting items include a modest gross margin decline (~2 ppt YoY), higher operating expenses (+12.9% YoY), increased inventory days, and a high degree of revenue concentration through a single fulfillment partner. Management provided a constructive FY2027 outlook (10%–15% growth, 59%–62% gross margin) while noting early-stage initiatives (semi-custom ASICs and indirect channel) with uncertain near-term P&L impact. Overall, the positive operational and financial achievements materially outweigh the manageable challenges and risks discussed.Positive Updates
Record Annual Revenue Growth
Fiscal 2026 revenue of $390.7M, up 37.2% year-over-year, marking a new company revenue record and materially outpacing the broader semiconductor industry.
Negative Updates
Gross Margin Compression
Full-year non-GAAP gross margin declined to 60.7% from 62.7% in FY2025 (down ~2.0 percentage points year-over-year); Q4 non-GAAP gross margin was 59.8%.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Annual Revenue Growth
Fiscal 2026 revenue of $390.7M, up 37.2% year-over-year, marking a new company revenue record and materially outpacing the broader semiconductor industry.
Read all positive updates
Company Guidance
Ambarella guided fiscal 2027 revenue growth of 10%–15% with non‑GAAP gross margin expected to remain in its long‑term model of 59%–62%; for Q1 they forecast revenue of $97M–$103M (midpoint $100M), non‑GAAP gross margin 59%–60.5%, non‑GAAP operating expense $55M–$58M, net interest and other income of about $2M, a non‑GAAP tax expense of roughly $0.8M, and diluted shares of ~44.1M; management also said auto revenue should be sequentially up in Q1 while IoT is seasonally down, that new products CV72/CV75 will contribute incrementally and the CV7 (4nm) is expected to start generating revenue in the fourth quarter, and that FY27 growth will be driven by both unit and ASP increases.Ambarella Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 390.70M | 284.87M | 226.47M | 337.61M | 331.86M |
| Gross Profit | 231.27M | 172.33M | 136.82M | 208.93M | 208.13M |
| EBITDA | -73.70M | -100.53M | -129.75M | -54.32M | -15.64M |
| Net Income | -75.86M | -117.13M | -169.42M | -65.39M | -26.41M |
Balance Sheet | |||||
| Total Assets | 798.60M | 688.97M | 657.65M | 710.20M | 657.54M |
| Cash, Cash Equivalents and Short-Term Investments | 312.57M | 250.26M | 219.93M | 206.86M | 171.04M |
| Total Debt | 13.44M | 5.26M | 5.34M | 8.64M | 11.71M |
| Total Liabilities | 203.81M | 127.56M | 97.78M | 104.11M | 110.37M |
| Stockholders Equity | 594.79M | 561.41M | 559.87M | 606.09M | 547.18M |
Cash Flow | |||||
| Free Cash Flow | 58.01M | 23.45M | 7.05M | 29.04M | 29.12M |
| Operating Cash Flow | 73.52M | 33.84M | 19.02M | 44.09M | 38.80M |
| Investing Cash Flow | -30.49M | -40.53M | 7.84M | -107.30M | -119.55M |
| Financing Cash Flow | 3.81M | 6.40M | 4.51M | 5.70M | 10.53M |
Ambarella Technical Analysis
Negative
50.54
Price Trends
59.91
Negative
68.11
Negative
71.31
Negative
Market Momentum
-2.73
Negative
36.57
Neutral
30.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMBA, the sentiment is Negative. The current price of 50.54 is below the 20-day moving average (MA) of 52.77, below the 50-day MA of 59.91, and below the 200-day MA of 71.31, indicating a bearish trend. The MACD of -2.73 indicates Negative momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMBA.
Ambarella Risk Analysis
Ambarella disclosed 72 risk factors in its most recent earnings report. Ambarella reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have identified a material weakness in our internal control over financial reporting. Failure to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could materially and adversely affect our business, results of operations, financial condition, and stock price. Q4, 2023
2.
Climate change and climate change-related policies and regulations may have a long-term impact on our business. Q4, 2023
3.
Uncertain risks relating to the adoption, use or application of emerging technologies, including artificial intelligence, by our customers and in our business, could adversely impact our financial results and result in reputational harm and liability. Q4, 2023
Ambarella Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.87B | 4.07 | 15.21% | 2.22% | -2.26% | 9.74% | |
71 Outperform | $7.23B | 33.85 | 8.42% | ― | 21.12% | -54.97% | |
65 Neutral | $6.89B | -66.51 | -6.05% | ― | 47.10% | 64.29% | |
64 Neutral | $2.91B | 90.19 | 3.17% | 2.27% | 10.50% | -52.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.87B | -48.27 | -4.45% | ― | 13.24% | -129.14% | |
59 Neutral | $2.21B | -42.07 | -13.00% | ― | 48.08% | 51.23% |
* Technology Sector Average
AMBA
Ambarella
50.54
8.87
21.29%
CAMT
Camtek
157.73
102.56
185.90%
POWI
Power Integrations
52.37
9.92
23.37%
SLAB
Silicon Laboratories
209.13
117.94
129.33%
SIMO
Silicon Motion
113.90
73.16
179.58%
SYNA
Synaptics
74.15
28.59
62.75%
Ambarella Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ambarella Adopts New FY2027 Executive Bonus Plan
Positive
Feb 27, 2026
On February 24, 2026, Ambarella’s board approved a Fiscal Year 2027 Annual Bonus Plan that significantly revises incentive compensation for its executive team, including CEO Feng-Ming Wang and other senior officers. The plan sets Wang’...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Ambarella Adds Veteran Director as Edge AI Business Grows
Positive
Feb 26, 2026
On February 23, 2026, Ambarella’s board appointed veteran semiconductor executive Gregory M. Bryant as an independent director and member of its compensation committee, granting him standard non‑employee director pay and a $150,000 RSU...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.