
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc has demonstrated robust growth across its key segments, with Automotive revenue showing mid-single digits growth quarter-over-quarter (q/q) and IoT revenue increasing in the low-teens q/q, with an impressive year-over-year (y/y) growth of over 60%. The company raised its fiscal year 2026 revenue guidance for the second consecutive quarter, now anticipating an overall revenue increase of 31-35% y/y, reflecting strong demand for its semiconductor solutions. Additionally, Ambarella has reported revenue of $95.5 million for the recent quarter, marking a 11.2% increase q/q and a significant 49.9% increase y/y, indicating a solid trajectory that exceeds prior guidance and consensus estimates.
Bears say
Ambarella's financial outlook appears negative due to a decline in gross margin, attributed to an unfavorable product mix, which decreased from the prior quarter and fell short of internal estimates. Additionally, the company's reliance on a limited number of customers raises concerns, as any reduction in sales to original design manufacturers or camera product sales by original equipment manufacturers could materially impact revenue. Operating cash flows of $5.5 million, paired with capital expenditures of $4.1 million resulting in only $1.4 million in free cash flow, indicates potential liquidity challenges amid increasing development costs in new product lines.
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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