Ambarella (NASDAQ:AMBA) Shares Gap Down – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA) shares gapped down prior to trading on Friday . The stock had previously closed at $70.90, but opened at $61.05. Ambarella shares last traded at $59.2720, with a volume of 1,475,693 shares traded.

Key Stories Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q4 results beat expectations: revenue of $100.9M (+20.1% Y/Y) and adjusted EPS $0.13 topped Street estimates, and fiscal 2026 revenue rose ~37% year?over?year — evidence demand for Ambarella’s edge?AI chips remains strong. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management highlighted continued Edge AI momentum and new product launches as drivers of record annual revenue, supporting a multi?year growth story in high?performance vision semiconductors. Q4 2026 Earnings Call Highlights
• Positive Sentiment: Corporate/board update: Ambarella appointed veteran semiconductor executive Gregory M. Brya to the board, which may strengthen governance and industry expertise as the business scales. Ambarella Adds Veteran Director
• Neutral Sentiment: Q1 FY2027 revenue guide provided: $97M–$103M (consensus ? $96.6M). the range is roughly in line with Street expectations but signals a more moderate near?term cadence versus the pace of FY2026. Earnings Release / Call Transcript
• Negative Sentiment: Management warned revenue growth will slow this fiscal year — investors often punish companies that flag deceleration even after a beat, which helps explain selling pressure after the print. Ambarella Guides for Revenue Growth to Slow This Fiscal Year
• Negative Sentiment: Market reaction: coverage and headlines noted the stock fell after hours/trading despite the beat — short?term selling likely driven by guidance tone and mixed operating metrics (operating loss / cash & balance?sheet nuances flagged by some reports). Ambarella Falls Despite Beating Estimates
• Negative Sentiment: Insider selling and commentary on operating losses were highlighted in some summaries (and QuiverQuant flagged multiple insider sales), which can weigh on sentiment despite top?line strength. QuiverQuant: Stock Falls on Q4 Earnings

Analysts Set New Price Targets

Several research analysts have commented on the stock. Needham & Company LLC reissued a “buy” rating and set a $100.00 price target on shares of Ambarella in a research note on Wednesday, November 26th. Bank of America increased their target price on shares of Ambarella from $90.00 to $92.00 and gave the company a “neutral” rating in a report on Wednesday, November 26th. Roth Mkm reissued a “neutral” rating on shares of Ambarella in a research note on Wednesday, November 26th. Stifel Nicolaus restated a “buy” rating and set a $100.00 price target (up from $90.00) on shares of Ambarella in a research report on Wednesday, November 26th. Finally, Wall Street Zen downgraded Ambarella from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $96.00.

Ambarella Trading Down 18.0%

The business’s fifty day simple moving average is $68.17 and its 200-day simple moving average is $76.01. The firm has a market cap of $2.50 billion, a P/E ratio of -30.91 and a beta of 1.97.

Ambarella (NASDAQ:AMBA) last issued its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.10 by $0.03. The firm had revenue of $100.87 million during the quarter, compared to the consensus estimate of $100.17 million. Ambarella had a negative net margin of 21.31% and a negative return on equity of 13.02%. The company’s quarterly revenue was up 20.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.11 earnings per share. Analysts anticipate that Ambarella, Inc. will post -2.81 earnings per share for the current year.

Insiders Place Their Bets

In other news, VP Chi-Hong Ju sold 7,728 shares of Ambarella stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $75.58, for a total value of $584,082.24. Following the sale, the vice president directly owned 146,039 shares in the company, valued at approximately $11,037,627.62. This trade represents a 5.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Christopher B. Paisley sold 500 shares of the business’s stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $72.18, for a total value of $36,090.00. Following the transaction, the director directly owned 41,279 shares in the company, valued at $2,979,518.22. This trade represents a 1.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 27,685 shares of company stock worth $2,016,598. Insiders own 5.30% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several institutional investors and hedge funds have recently modified their holdings of AMBA. Pacer Advisors Inc. raised its stake in Ambarella by 82.2% in the fourth quarter. Pacer Advisors Inc. now owns 4,231 shares of the semiconductor company’s stock worth $300,000 after buying an additional 1,909 shares in the last quarter. Connective Capital Management LLC grew its holdings in shares of Ambarella by 4.2% during the 4th quarter. Connective Capital Management LLC now owns 14,516 shares of the semiconductor company’s stock worth $1,028,000 after acquiring an additional 582 shares during the period. Jacobs Equity LLC purchased a new position in shares of Ambarella during the 4th quarter worth approximately $232,000. Vident Advisory LLC raised its position in shares of Ambarella by 7.2% in the 4th quarter. Vident Advisory LLC now owns 5,265 shares of the semiconductor company’s stock worth $373,000 after acquiring an additional 353 shares in the last quarter. Finally, Mackenzie Financial Corp lifted its stake in shares of Ambarella by 28.4% in the 4th quarter. Mackenzie Financial Corp now owns 19,483 shares of the semiconductor company’s stock valued at $1,357,000 after purchasing an additional 4,314 shares during the period. 82.09% of the stock is owned by hedge funds and other institutional investors.

About Ambarella

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.