
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc reported a strong revenue growth of 25.8% year-over-year for FY25, reaching $284.9 million, largely driven by a significant increase in IoT revenue, which rose over 30%. Additionally, the company secured 10 new OEM engagements across its IoT and automotive sectors, indicating robust demand for its semiconductor solutions. With expectations for mid- to high-teens revenue growth in FY26, primarily from the CV5 and CV7 product families, Ambarella is positioned for continued expansion in its key markets.
Bears say
Ambarella's financial outlook is negatively impacted by a declining Non-GAAP gross margin, which decreased to 62.7% for FY25 from 63.3% in FY24, primarily due to shifts in product mix. Additionally, the company's automotive segment is projected to experience a sequential decline, while its traditional video processing business continues to face a steady downturn with an expected annual decline of 10-15%. The prospect of low production yields further exacerbates revenue and profitability concerns, suggesting ongoing challenges for the firm despite minor improvements in operating expenses and days sales outstanding.
This aggregate rating is based on analysts' research of Ambarella and is not a guaranteed prediction by Public.com or investment advice.
Ambarella (AMBA) Analyst Forecast & Price Prediction
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