
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc experienced significant revenue growth in FY25, reporting $284.9 million, which reflects a 25.8% increase compared to FY24, driven primarily by a robust 30% rise in IoT revenue and stable automotive growth. The company secured 10 new OEM engagements across IoT and automotive sectors in the recent quarter, signaling strong demand for its semiconductor solutions. Looking ahead, FY26 is anticipated to continue this momentum with projected revenue growth in the mid- to high-teens, supported by contributions from the CV5 and CV7 product families.
Bears say
Ambarella Inc's financial outlook appears negative due to a decline in Non-GAAP gross margin from 63.3% in FY24 to 62.7% in FY25, primarily driven by shifts in product mix. Although the company reported a Non-GAAP EPS of $0.11 for the quarter, outperforming estimates, management projects a sequential decline in automotive sales and anticipates flat growth in IoT, suggesting stagnant demand in key markets. Additionally, the ongoing decline in the video processing business, expected at 10-15% year-over-year, coupled with low production yields that could adversely affect revenue and profitability, contributes to a concerning financial trajectory for Ambarella.
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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