
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc reported a substantial revenue increase of 25.8% year-over-year for FY25, totaling $284.9 million, driven largely by robust growth in its IoT segment, particularly from the 5nm products, which rose over 30%. The company secured ten original equipment manufacturer engagements in both IoT and automotive sectors, indicating strong demand and expansion opportunities in these markets. Projections for FY26 suggest continued growth, with anticipated revenue increasing by approximately 17%, fueled by the successful CV5 and CV7 product families that are expected to contribute significantly to overall revenue.
Bears say
Ambarella Inc. experienced a decline in Non-GAAP gross margin from 63.3% in FY24 to 62.7% in FY25, attributed to shifts in product mix, indicating potential challenges in maintaining profitability. The company's revenue stream from its Automotive sector is projected to decline sequentially, alongside a continuation of a slow rate of decline in its legacy Video Processing business, which is expected to decrease by 10-15% year-over-year. Furthermore, concerns over low production yields could adversely impact both revenue and profitability, casting a shadow on the company’s financial outlook.
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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