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Ambarella Inc

Ambarella Inc

AMBA
$61.84USD↓-2.29%-1.45 today

MARKET CAP

2.7B

P/E (TTM)

95.9x

FWD P/E

75.1x

DAY RANGE

$59 – $64

52W RANGE

$48
$97

AI Summary

Stalk
Sell NowMedium

AMBA is in Stage 4 decline with a clear Support Failure breakdown below key support and a sequence of lower highs and lower lows. The medium-term structure is bearish, with price trading below the declining EMAs and no signs of stabilization or repair. Short-term execution conditions favor selling now as rallies into the 9/21/50 EMA cluster are consistently rejected, though extreme oversold readings risk a snap-back bounce. Execution is recommended immediately on minor rallies into the broken support or EMA region.

  • ↑Q1 2027 revenue $100.4M, +16.9% YoY, above guidance midpoint.
  • ↑Automotive revenue set all-time high, driven by AI telematics and safety.
  • ↓Balance-sheet vulnerability shown by negative earnings yield and quality concerns.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Ambarella, Inc. (NASDAQ: AMBA) is a leading provider of advanced semiconductor solutions specifically focusing on high-definition video processing and computer vision technology. It plays a pivotal role in fast-evolving sectors like automotive, IoT, and security by utilizing its proprietary system-on-chips (SoCs) integrated with AI capabilities. The company's current transition to edge AI and innovative applications positions it at the forefront of the semiconductor industry, where demand for sophisticated AI solutions continues to surge.

Bull says

  • ↑Q1 2027 revenue $100.4M, +16.9% YoY, above guidance midpoint.
  • ↑Automotive revenue set all-time high, driven by AI telematics and safety.
  • ↑Secured $800M long-term agreement with Hanwha for predictable revenue.
  • ↑Non-GAAP gross margin at 59.9%, reflecting stable operational efficiency.
  • ↑Initiated $50M share repurchase program to support shareholder value.
  • ↑Strong growth and analyst revision factors, with high liquidity.

Bear says

  • ↓Balance-sheet vulnerability shown by negative earnings yield and quality concerns.
  • ↓Operating expenses of $56.4M pressure profit margins amid heavy R&D.
  • ↓Ongoing DRAM/storage shortages pose production and delivery risks.
  • ↓Negative profitability trends question long-term earnings sustainability.
  • ↓Insiders sold ~$1.46M in shares, signaling potential confidence issues.
  • ↓High stock volatility heightens downside risk for investors.

Investment themes with AMBA

Robotics↑ +0.45%

Robotics and automation technology companies

IPGP · ZBRA · 6954.T

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 06-01-2026bullish

Transcript signals

Bull points

  • For fiscal Q1, revenue was $85.9 million, above the midpoint of our prior guidance range, up 2.2% from the prior quarter, and up 57.6% year over year.
  • We reported a non-GAAP net profit of $3 million or 7 cents of earnings per diluted share in Q1.
  • Fiscal Q1 cash and marketable securities reached $259.4 million increasing $9.1 million from the prior quarter and $56 million from the same quarter a year ago, benefiting primarily from working capital improvements associated with increased revenue during the quarter.

Bear points

  • Sequentially, automotive revenue declined in the low single digits,
  • Although the geopolitical uncertainty remains high, we are increasing our fiscal 2026 revenue growth estimate to the range of 19% to 25%, or approximately $348 million at the midpoint. While we continue to expect that we will not face a material direct impact from the current tariffs, given the uncertainty of an indirect impact, our larger than normal range of guidance reflects our conservatism.
Read full transcript analysis ›