Ambarella’s (AMBA) “Buy” Rating Reiterated at Rosenblatt Securities

Ambarella (NASDAQ:AMBA)‘s stock had its “buy” rating reiterated by stock analysts at Rosenblatt Securities in a research note issued on Wednesday, Benzinga reports. They currently have a $120.00 price target on the semiconductor company’s stock. Rosenblatt Securities’ target price would suggest a potential upside of 86.54% from the company’s previous close.

Other equities analysts have also recently issued research reports about the stock. Northland Securities set a $101.00 price target on shares of Ambarella in a research note on Wednesday, June 17th. Consumer Edge reiterated a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Bank of America cut their price target on shares of Ambarella from $96.00 to $70.00 and set a “neutral” rating on the stock in a report on Friday, September 4th. Needham & Company LLC reiterated a “buy” rating on shares of Ambarella in a report on Friday, September 4th. Finally, Weiss Ratings raised shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $89.56.

Ambarella Price Performance

AMBA opened at $64.33 on Wednesday. The stock’s 50 day simple moving average is $72.53 and its 200 day simple moving average is $68.10. Ambarella has a 1 year low of $48.30 and a 1 year high of $96.69. The firm has a market cap of $2.84 billion, a price-to-earnings ratio of -49.87 and a beta of 2.09.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.17 by $0.01. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.03%. The firm had revenue of $108.12 million during the quarter, compared to the consensus estimate of $107.76 million. During the same period in the prior year, the firm posted $0.15 earnings per share. The company’s quarterly revenue was up 13.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ambarella will post -1.11 EPS for the current year.

Insider Buying and Selling

In other Ambarella news, CEO Feng-Ming Wang sold 16,250 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $90.08, for a total transaction of $1,463,800.00. Following the completion of the sale, the chief executive officer directly owned 773,607 shares of the company’s stock, valued at $69,686,518.56. This trade represents a 2.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Yun-Lung Chen sold 5,958 shares of the firm’s stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $78.66, for a total transaction of $468,656.28. Following the transaction, the vice president directly owned 60,557 shares of the company’s stock, valued at $4,763,413.62. The trade was a 8.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 32,458 shares of company stock worth $2,836,359. 4.50% of the stock is owned by corporate insiders.

Institutional Trading of Ambarella

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company boosted its holdings in Ambarella by 49.5% in the first quarter. The Manufacturers Life Insurance Company now owns 1,586,082 shares of the semiconductor company’s stock valued at $81,644,000 after purchasing an additional 524,937 shares during the last quarter. Jericho Capital Asset Management L.P. raised its stake in shares of Ambarella by 30.8% during the 4th quarter. Jericho Capital Asset Management L.P. now owns 1,587,081 shares of the semiconductor company’s stock valued at $112,429,000 after buying an additional 373,734 shares during the last quarter. Hawk Ridge Capital Management LP purchased a new position in shares of Ambarella during the 1st quarter valued at about $14,212,000. Renaissance Technologies LLC acquired a new position in shares of Ambarella in the 1st quarter valued at about $10,264,000. Finally, Handelsbanken Fonder AB lifted its holdings in Ambarella by 84.0% in the 4th quarter. Handelsbanken Fonder AB now owns 312,326 shares of the semiconductor company’s stock valued at $22,125,000 after purchasing an additional 142,551 shares in the last quarter. 82.09% of the stock is owned by hedge funds and other institutional investors.

Ambarella News Roundup

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: New X7 AI accelerator expands Ambarella’s addressable market. Ambarella launched X7, its first standalone CVflow AI accelerator, designed to add computer-vision and physical-AI capabilities to Arm- and x86-based systems. The chip allows customers to upgrade existing platforms without replacing the host processor, and leading OEMs are reportedly already developing designs. This could broaden Ambarella’s customer base beyond its traditional integrated-SoC market. Ambarella Launches X7
• Positive Sentiment: Analyst commentary supports the product strategy. Rosenblatt said it appreciates Ambarella’s strategy, providing an additional positive signal for the X7 launch and the company’s broader push into efficient edge-AI computing. Rosenblatt on Ambarella
• Positive Sentiment: Partnerships improve software adoption and deployment. Ambarella is working with Ultralytics to bring YOLO computer-vision models to CVflow devices, while its ZEDEDA partnership will enable cloud-based deployment, security and management of AI workloads across large device fleets. Together, the collaborations could make Ambarella’s chips easier for developers and enterprises to use. Ambarella and Ultralytics Collaboration Ambarella and ZEDEDA Partnership
• Positive Sentiment: Developer access is being expanded through Google Cloud. Ambarella’s Developer Zone now offers a cloud-hosted IDE, remote access to live silicon and agentic-AI development tools powered by Google Cloud and Gemini Enterprise. Easier prototyping could accelerate customer design wins and ecosystem growth. Ambarella Developer Zone Expansion
• Neutral Sentiment: Coverage describes Ambarella as a potentially efficient beneficiary of the physical-AI trend, but the investment thesis depends on converting these products and partnerships into meaningful commercial revenue. Ambarella: Physical AI’s Hidden Efficiency Winner
• Negative Sentiment: Despite the bullish announcements, Ambarella remains unprofitable, with a negative price-to-earnings ratio and analysts expecting a full-year loss. The stock’s position below its moving averages indicates that investors may require evidence of design wins, shipments and improving profitability before assigning a higher valuation.

About Ambarella

Ambarella, Inc is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing and artificial intelligence at the edge. Its technology is designed to help devices capture, process, analyze and transmit high-quality video while reducing the need to send data to cloud-based systems.

The company’s product portfolio includes its CVflow family of AI vision processors, video processors and related software. These solutions support computer vision and machine learning applications in security cameras, automotive systems, advanced driver-assistance systems, robotics, industrial equipment and consumer devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets globally through its semiconductor products and technology partnerships.