Morgan Stanley analyst Joseph Moore has maintained their bullish stance on AMBA stock, giving a Buy rating today.
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Joseph Moore has given his Buy rating due to a combination of factors that highlight Ambarella’s strong performance and future growth potential. The company reported impressive Q2 revenue of $95.5 million, which surpassed expectations and marked a significant increase both quarter-over-quarter and year-over-year. This growth is largely driven by the expanding applications of edge AI, particularly in the IoT sector, where portable video and robotics are contributing to new growth avenues.
Additionally, Ambarella’s management has raised their revenue growth expectations for FY26, indicating confidence in continued demand and market expansion. The company’s focus on diversifying its IoT portfolio beyond traditional security applications, with strong performance in non-security areas such as portable video and drones, further supports this optimistic outlook. These factors, combined with a strong order book and no signs of inventory issues, underpin Moore’s positive assessment of Ambarella’s stock.