Ambarella’s Promising Outlook: Strategic Expansion and Diversified Revenue Streams Drive Buy Rating

Analyst Quinn Bolton of Needham maintained a Buy rating on Ambarella (AMBA – Research Report), with a price target of $90.00.

Quinn Bolton has given his Buy rating due to a combination of factors that highlight Ambarella’s promising outlook. The company has exceeded expectations with its recent quarterly results and has provided guidance for the next quarter that surpasses market predictions. This optimistic forecast includes a projected revenue growth of 19%-25% year-over-year for FY26, despite some conservative assumptions related to tariff uncertainties.
Moreover, Ambarella is strategically expanding its serviceable available market by moving beyond endpoint devices to include edge infrastructure, with new processors already in development to capture this opportunity. Additionally, the company’s revenue streams are becoming more diversified, with less than half now coming from security cameras, about 25% from the automotive sector, and the rest from consumer markets. These factors collectively contribute to Bolton’s positive outlook on Ambarella’s stock.

In another report released on May 28, Stifel Nicolaus also reiterated a Buy rating on the stock with a $80.00 price target.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMBA in relation to earlier this year.