
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc. has demonstrated strong financial performance, with revenues for the second quarter increasing 49.9% year-over-year and exceeding guidance expectations, reflecting significant growth in both automotive and IoT segments. The automotive revenue, which has been identified as a strategic focus for the company, showed mid-single-digit growth quarter-over-quarter, while IoT revenue experienced impressive growth of over 60% year-over-year and accounted for approximately 75% of total revenues. Additionally, management raised its fiscal year 2026 revenue guidance to a projected increase of 31-35% year-over-year, indicating a positive outlook and strengthening profitability for Ambarella.
Bears say
Ambarella Inc has experienced a decline in gross margin quarter-over-quarter, attributed to an unfavorable product mix and low production yields, which could adversely impact revenue and profitability. The company's reliance on a limited number of customers for a significant portion of its revenue raises concerns, as any decrease in sales to these original design manufacturers (ODM) or original equipment manufacturers (OEM) could have a material negative effect on financial performance. Furthermore, the non-GAAP gross margin fell to 60.5%, underperforming both internal estimates and market expectations, while operating cash flows and free cash flow remained modest amid ongoing capital expenditures.
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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