
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc demonstrated a robust financial performance for FY25, reporting revenue of $284.9 million, which represented a 25.8% increase from the previous year, driven significantly by a more than 30% growth in IoT revenue, particularly from its advanced 5nm products. The company secured ten new OEM engagements within its IoT and automotive segments, indicating strong demand and expansion opportunities in these markets. Looking ahead, Ambarella is positioned for continued growth in FY26, with projected revenue growth in the mid- to high-teens, primarily fueled by its CV5 and CV7 product families, showcasing the potential for substantial revenue contributions in the coming years.
Bears say
Ambarella Inc experienced a slight decline in non-GAAP gross margin, which fell to 62.7% for FY25 from 63.3% in FY24, attributed to shifts in product mix, indicating potential pressures on profitability. Revenue from the Automotive sector is anticipated to decrease sequentially, while the company’s older Video Processing business is expected to maintain a consistent decline rate of 10-15% year-over-year, raising concerns about future growth potential. Additionally, low production yields may further hinder revenue and profitability, compounding the negative outlook for the firm.
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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