
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc has demonstrated strong segment growth, with automotive revenue increasing in the mid-single digits quarter-over-quarter and IoT revenue growing in the low teens, bolstered by a substantial year-over-year increase of over 60%. The company has successfully raised its fiscal year 2026 revenue guidance for the second consecutive quarter, now projecting a 31-35% year-over-year increase from a previous revenue of $95.5 million, which itself showed impressive growth of 11.2% quarter-over-quarter and 49.9% year-over-year. With IoT now representing approximately 75% of total revenue and consistent improvements in profitability, Ambarella's strategic focus on high-growth areas positions it favorably for continued financial success.
Bears say
Ambarella Inc has experienced a decline in gross margin due to unfavorable product mix and low production yields, which could adversely impact both revenue and profitability moving forward. The company's reliance on a limited number of customers for a substantial portion of its revenue raises concerns, as any decrease in sales to those original design manufacturers or original equipment manufacturers could have a materially negative effect. Additionally, the non-GAAP gross margin and operating cash flows indicate potential financial strain, emphasizing the challenges in achieving sustained profitability and growth, particularly in a diversifying IoT market where security cameras make up a diminishing share of revenue.
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
Start investing in Ambarella (AMBA)
Order type
Buy in
Order amount
Est. shares
0 shares