Ambarella (NASDAQ:AMBA) Sees Large Volume Increase – Should You Buy?

Ambarella, Inc. (NASDAQ:AMBA) saw unusually-high trading volume on Wednesday . Approximately 1,046,440 shares were traded during trading, a decline of 8% from the previous session’s volume of 1,131,957 shares.The stock last traded at $89.5930 and had previously closed at $85.80.

Key Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Rosenblatt reportedly named Ambarella a top pick for the second half of 2026, calling it a strong “physical AI” pure play thanks to its edge AI chip leadership and positioning in robotics and machine vision. Article Title
• Positive Sentiment: Several reports highlighted a major Hanwha-related deal worth about $800 million, which investors appear to view as validation of Ambarella’s technology and growth prospects. Article Title
• Positive Sentiment: Ambarella’s last earnings report also supported the bull case: revenue rose 16.9% year over year to $100.4 million and EPS came in at $0.11, matching Wall Street expectations. Article Title
• Neutral Sentiment: A director sold 250 shares under a pre-arranged 10b5-1 plan, which is worth noting but is too small to signal a major change in insider conviction. Article Title

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. Stifel Nicolaus set a $106.00 price objective on shares of Ambarella in a report on Friday, May 29th. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Ambarella in a research note on Tuesday, May 26th. Weiss Ratings reissued a “sell (e+)” rating on shares of Ambarella in a report on Friday. Finally, Susquehanna lifted their price target on Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Ambarella has an average rating of “Moderate Buy” and an average target price of $100.50.

Ambarella Trading Up 7.5%

The stock has a market capitalization of $4.05 billion, a price-to-earnings ratio of -57.51 and a beta of 2.15. The company’s 50 day moving average is $72.71 and its 200 day moving average is $66.38.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.11. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The company had revenue of $100.36 million for the quarter, compared to analyst estimates of $100.12 million. During the same quarter last year, the company posted $0.07 earnings per share. The business’s quarterly revenue was up 16.9% compared to the same quarter last year. Analysts anticipate that Ambarella, Inc. will post -1.13 EPS for the current fiscal year.

Insider Activity at Ambarella

In other news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the transaction, the insider directly owned 157,098 shares of the company’s stock, valued at $10,662,241.26. The trade was a 1.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Feng-Ming Wang sold 32,500 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $91.01, for a total transaction of $2,957,825.00. Following the sale, the chief executive officer owned 806,061 shares of the company’s stock, valued at approximately $73,359,611.61. This represents a 3.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 61,182 shares of company stock valued at $4,889,103 over the last 90 days. 4.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Ambarella

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Essential Partners LLC boosted its stake in shares of Ambarella by 90.1% during the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after buying an additional 228 shares during the period. EverSource Wealth Advisors LLC raised its stake in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 326 shares during the last quarter. Cassaday & Co Wealth Management LLC purchased a new stake in Ambarella during the 1st quarter valued at approximately $30,000. Advisory Services Network LLC acquired a new stake in Ambarella during the 3rd quarter worth approximately $33,000. Finally, Steward Partners Investment Advisory LLC grew its stake in shares of Ambarella by 162.5% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock valued at $37,000 after purchasing an additional 325 shares during the last quarter. 82.09% of the stock is owned by hedge funds and other institutional investors.

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.