Ambarella (AMBAN) AI Stock Analysis

Ambarella

(BMV:AMBAN)

Rating:―N/A

Action:N/A

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Positive Factors

Revenue Growth and Gross MarginsAmbarella is combining strong top-line recovery with resilient gross margins, indicating improving demand for its products and solid underlying product economics. If these trends persist, the company has a stronger base for absorbing operating costs and converting future growth into profitability.

Negative Factors

Continued Net LossesDespite revenue growth and healthy gross margins, Ambarella has not yet translated scale into sustained operating or net profitability. Continued losses can constrain internally funded investment, weaken returns on shareholder capital, and leave earnings dependent on further growth and operating-cost discipline.

Ambarella (AMBAN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 2.79B
Dividend Yield: ―
Average Volume (3M): 150
Price to Earnings (P/E): -48.9
Beta (1Y): 0.79
Revenue Growth: 8.51%
EPS Growth: 44.23%
Country: Mexico
Employees: 959
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Ambarella Business Overview & Revenue Model

Company Description

Ambarella, Inc. is a global semiconductor company specializing in advanced video processing technology. They develop chips that facilitate high-definition (HD) and ultra-HD (UHD) video compression, sophisticated image manipulation, and cutting-edge d...

Ambarella Earnings Call Summary

Earnings Call Date:Sep 02, 2026(Q2-2027)|% Change Since:16.16%|Next Earnings Date:Nov 30, 2026

Earnings Call SentimentPositive

The call was broadly positive, supported by record edge AI and automotive revenue, double-digit year-over-year growth, a higher five-year serviceable market forecast, new product ramps, design wins, and major channel partnerships. The company also provided favorable Q3 revenue guidance. Offsetting concerns included memory scarcity, rising supply chain costs, uncertainty around Q4 customer demand, below-midpoint gross margin, negative free cash flow, higher inventory days and competition in the AI accelerator market.

Positive Updates

Q2 Revenue and Earnings Above Guidance Midpoint

Fiscal Q2 revenue was $108.1 million, slightly above the midpoint of the prior guidance range of $105 million to $111 million, up 7.7% sequentially and 13.2% year-over-year. Non-GAAP net profit was $8.2 million, or $0.18 per diluted share.

Negative Updates

Memory Scarcity and Rising Supply Chain Costs

Memory vendors and supply chains are prioritizing AI data center demand, resulting in rising supply chain costs and scarce memory supply. Ambarella is facing rising supply chain costs and plans to pass those costs to customers.

Company Guidance

For fiscal Q3, Ambarella anticipates revenue in the range of $115 million to $124 million, or $119.5 million at the midpoint, non-GAAP gross margin in the range of 59% to 60%, non-GAAP OpEx in the range of $56.5 million to $59.5 million, net interest and other income of approximately $1.9 million, non-GAAP tax expense of approximately $700,000, and diluted share count of approximately 44.9 million shares; the company expects Q3 growth to be led by Physical AI demand from the IoT market, maintains its long-term gross margin target of 59% to 62%, expects the 2-nanometer CV8 semi-custom SoC to generate first production revenue in fiscal 2028, expects meaningful revenue from the CapGemini and Macnica partnerships in 2 to 3 years, and expects revenue of $0.5 billion with each one of them over the next 7 years.

Ambarella Risk Analysis

Ambarella disclosed 59 risk factors in its most recent earnings report. Ambarella reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

1 New Risk

1.We have adopted a share repurchase program to repurchase our ordinary shares; however, any future decisions to reduce or discontinue repurchasing our ordinary shares pursuant to such share repurchase program could cause the market price of our ordinary shares to decline.Q2, 2026

Ambarella Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:AMBAN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	89Outperform	$4.93T	25.74	110.11%	0.25%	83.38%	124.42%
QCOM	68Neutral	$175.97B	18.77	37.33%	2.20%	1.87%	-16.70%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYNA	59Neutral	$4.68B	-9.34	-38.70%	―	11.44%	-940.34%
CEVA	55Neutral	$831.11M	-73.25	-3.42%	―	8.82%	2.60%
HIMX	47Neutral	$1.85B	54.73	3.94%	2.32%	-7.60%	-52.67%

* Technology Sector Average

Performance Comparison

MX:AMBAN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:AMBAN	Ambarella Inc.	1245.00	-17.13	-1.36%
CEVA	Ceva Inc	29.52	1.77	6.38%
HIMX	Himax Technologies	10.87	1.72	18.86%
NVDA	Nvidia Corporation	204.64	-1.75	-0.85%
QCOM	Qualcomm	164.79	-12.24	-6.92%
SYNA	Synaptics	117.86	46.84	65.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Ambarella AI Stock Analysis