
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc. has demonstrated a strong financial performance with record revenue of $108.5 million in the latest quarter, reflecting a 31.2% year-over-year growth and exceeding estimates, driven primarily by robust demand in Edge AI across automotive and IoT sectors. The company's average selling prices (ASP) for its system-on-chip (SoC) solutions have risen approximately 20% year-over-year, highlighting the transition to more sophisticated product offerings that are contributing to revenue growth. Furthermore, Ambarella has secured over a dozen design wins in the automotive and IoT markets, indicating a positive trajectory for future revenue generation, particularly with the anticipated contributions from its CV2 product family.
Bears say
Ambarella Inc is experiencing a concerning shift in its financial outlook, with projected declines in its Automotive and IoT segments expected to be in the mid- to high-single digits sequentially, which may impact overall revenue vitality. Additionally, the company has guided lower non-GAAP gross margins for the upcoming quarter at 59.8%, falling short of previous estimates, primarily due to a mix shift towards higher volume customers who receive discounts, which may further strain profitability. Despite a decent performance in Edge AI revenue, the anticipated overall revenue for the fourth quarter shows an estimated decline of approximately 8% quarter-over-quarter, raising concerns about the sustainability of growth in a competitive semiconductor market.
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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