
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc. has demonstrated a positive growth trajectory with record revenue of $108.5 million in F3Q26, reflecting a 13.5% quarter-over-quarter increase and a 31.2% year-over-year rise, surpassing the upper end of revenue guidance. The firm's system-on-a-chip (SoC) blended average selling prices (ASPs) have risen approximately 20% year-over-year, contributing to the company's robust performance, particularly within the expanding Edge AI applications across automotive and IoT sectors. Furthermore, Ambarella's continued success in securing design wins, alongside increasing demand for its innovative CV2 product family, positions the company favorably for sustained revenue growth in the coming years.
Bears say
Ambarella Inc's financial outlook reflects several concerning trends that could negatively impact its stock performance. The company anticipates mid- to high-single-digit declines in both Automotive and IoT revenues on a sequential basis, driven by typical seasonality, which raises questions about sustainable growth in these critical segments. Additionally, the expected gross margin for F4Q26 is downgraded to 59.8%, below previous estimates, primarily due to a mix shift towards higher volume customers that may result in lower profitability and increased reliance on volume discounts.
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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