Ambarella Inc.
AMBA
$68.88
-5.51%
Ambarella Inc. is a fabless semiconductor company that designs low-power system-on-a-chip (SoC) solutions and software for edge artificial intelligence (AI) and intelligent automation applications, serving markets such as video security, automotive, robotics, and consumer cameras. As a niche player in the edge AI semiconductor space, Ambarella differentiates itself through its focus on energy-efficient, high-performance computer vision processing. The current investor narrative centers on the company's strategic pivot to edge AI and physical AI applications, which has recently garnered increased Wall Street attention, highlighted by a new $120 price target and strong institutional buying, signaling confidence in its growth trajectory.…
AMBA
Ambarella Inc.
$68.88
Related headlines
AMBA 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Ambarella Inc.'s 12-month outlook, with a consensus price target around $89.54 and implied upside of +30.0% versus the current price.
Average Target
$89.54
1 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
1
covering this stock
Price Range
$55 - $90
Analyst target range
Only one analyst covers Ambarella, with a consensus estimated EPS of $4.35 and revenue of $940 million for the current fiscal year. The average price target is not explicitly given, but a recent analyst set a $120 target, implying approximately 55% upside from the current price of $77.30. The coverage is minimal, which is typical for a small-cap stock with a market cap of $2.73 billion. The single analyst's target range (low $4.21 EPS, high $4.66 EPS) suggests a relatively narrow spread, indicating some conviction. The high target of $120 likely assumes successful execution in edge AI and margin expansion, while the low target of $4.21 EPS may price in slower growth or competitive pressures. Insufficient analyst coverage means the stock may experience higher volatility and less efficient price discovery, as fewer institutional players are actively following it.
Drowning in data?
Find the real signal!
AMBA Technical Analysis
Ambarella's stock is in a volatile uptrend over the past year, with a 1-year price change of +14.59%, though it has experienced significant swings. The current price of $77.30 sits at 80% of its 52-week range ($48.30 - $96.69), indicating it is closer to the highs but not overextended, suggesting momentum but room for further upside. The stock's beta of 2.108 implies it is more than twice as volatile as the S&P 500, amplifying both gains and losses. Over the last three months, the stock has surged 46.46%, far outpacing the S&P 500's 11.11% gain, reflecting strong relative strength. However, the 1-month change of +23.42% shows accelerating short-term momentum, though the stock recently pulled back from a high of $88.34 on July 1 to $77.30, indicating potential profit-taking. The 52-week low of $48.30 provides a key support level, while the 52-week high of $96.69 is a major resistance. A breakout above $96.69 would signal a resumption of the uptrend, while a breakdown below $48.30 could indicate a bearish reversal. Given the high beta, investors should expect sharp moves and position accordingly.
Beta
2.11
2.11x market volatility
Max Drawdown
-49.1%
Largest decline past year
52-Week Range
$48-$97
Price range past year
Annual Return
+3.5%
Cumulative gain past year
| Period | AMBA Return | S&P 500 |
|---|---|---|
| 1m | -1.8% | +0.0% |
| 3m | +20.2% | +7.6% |
| 6m | +0.2% | +9.1% |
| 1y | +3.5% | +21.3% |
| ytd | -8.4% | +10.7% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
AMBA Fundamental Analysis
Ambarella's revenue trajectory appears to be recovering, with estimated annual revenue of $940 million for the current fiscal year, though specific quarterly figures are not available. The company's gross margin of 57.96% is healthy for a semiconductor firm, indicating strong pricing power or cost efficiency. However, the net margin is deeply negative at -19.42%, reflecting ongoing operating losses as the company invests in growth. The company is currently unprofitable, with a trailing EPS of -$0.03 and a negative net income, but the forward PE of 67.38 suggests the market expects a return to profitability. Operating margin of -21.12% shows significant operating expenses relative to revenue, typical for a growth-stage company. The balance sheet is solid, with a current ratio of 2.31, indicating ample liquidity to cover short-term obligations. Debt-to-equity is negligible at 0.023, meaning the company relies primarily on equity financing. Free cash flow data is not available, but the PCF ratio of 37.20 suggests the market values the company at a premium to its cash flow. ROE of -12.75% reflects the current unprofitability, but the low debt levels reduce financial risk.
Quarterly Revenue
N/A
N/A
Revenue YoY Growth
N/A
YoY Comparison
Gross Margin
N/A
Latest Quarter
Free Cash Flow
N/A
Last 12 Months
Open an Account, get $2 TSLA now!
Valuation Analysis: Is AMBA Overvalued?
Since net income is negative, the price-to-sales (PS) ratio is the most appropriate valuation metric. Ambarella's trailing PS ratio is 7.00, which is elevated compared to the semiconductor industry average of around 4-5x, indicating a premium. The forward PE of 67.38 implies that the market expects significant earnings growth, as the company is expected to become profitable. The EV/Sales ratio of 7.83 further confirms the premium valuation. Compared to the industry, Ambarella trades at a 40-75% premium on a PS basis, which may be justified by its focus on high-growth edge AI markets and its gross margin of 57.96%, above the industry average of ~50%. Historical PS data is not available, but the current PS of 7.00 is likely near the higher end of its historical range given the company's recent pivot and growth expectations. The PEG ratio of 0.96 suggests that the stock is reasonably valued relative to its expected earnings growth, though this relies on forward estimates.
PE
-36.0x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-53.2x
Enterprise Value Multiple
