Rosenblatt Securities Reiterates Buy Rating for Ambarella (NASDAQ:AMBA)

Ambarella (NASDAQ:AMBA)‘s stock had its “buy” rating reiterated by Rosenblatt Securities in a report released on Wednesday, Benzinga reports. They currently have a $120.00 target price on the semiconductor company’s stock. Rosenblatt Securities’ price objective would suggest a potential upside of 86.54% from the stock’s previous close.

AMBA has been the subject of a number of other reports. Bank of America cut their target price on Ambarella from $96.00 to $70.00 and set a “neutral” rating for the company in a research note on Friday, September 4th. Susquehanna boosted their price target on shares of Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research report on Friday, May 29th. Oppenheimer reissued a “market perform” rating on shares of Ambarella in a report on Friday, September 4th. Craig Hallum cut shares of Ambarella from a “buy” rating to a “hold” rating and set a $70.00 price objective for the company. in a research report on Friday, September 4th. Finally, Stifel Nicolaus reduced their target price on shares of Ambarella from $106.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, September 4th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Ambarella has an average rating of “Hold” and a consensus target price of $89.56.

Ambarella Trading Up 0.5%

AMBA stock opened at $64.33 on Wednesday. The firm has a 50-day moving average of $72.53 and a two-hundred day moving average of $68.10. Ambarella has a 12 month low of $48.30 and a 12 month high of $96.69. The company has a market cap of $2.84 billion, a price-to-earnings ratio of -49.87 and a beta of 2.09.

Ambarella (NASDAQ:AMBA) last issued its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.01. The business had revenue of $108.12 million for the quarter, compared to analysts’ expectations of $107.76 million. Ambarella had a negative return on equity of 10.03% and a negative net margin of 13.48%.The business’s revenue for the quarter was up 13.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.15 EPS. As a group, equities analysts forecast that Ambarella will post -1.11 earnings per share for the current year.

Insider Activity at Ambarella

In other Ambarella news, VP Chi-Hong Ju sold 10,000 shares of Ambarella stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of the sale, the vice president directly owned 155,924 shares in the company, valued at $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Yun-Lung Chen sold 5,958 shares of the company’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $78.66, for a total transaction of $468,656.28. Following the completion of the transaction, the vice president owned 60,557 shares in the company, valued at approximately $4,763,413.62. This represents a 8.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 32,458 shares of company stock worth $2,836,359. Company insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several institutional investors and hedge funds have recently modified their holdings of the company. Financial Management Professionals Inc. purchased a new position in Ambarella during the 2nd quarter valued at about $32,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Ambarella during the second quarter worth about $34,000. Essential Partners LLC increased its stake in Ambarella by 90.1% during the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 228 shares during the period. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Ambarella during the first quarter worth about $30,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Ambarella by 60.6% during the first quarter. EverSource Wealth Advisors LLC now owns 668 shares of the semiconductor company’s stock worth $34,000 after purchasing an additional 252 shares in the last quarter. Hedge funds and other institutional investors own 82.09% of the company’s stock.

Key Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: New X7 AI accelerator expands Ambarella’s addressable market. Ambarella launched X7, its first standalone CVflow AI accelerator, designed to add computer-vision and physical-AI capabilities to Arm- and x86-based systems. The chip allows customers to upgrade existing platforms without replacing the host processor, and leading OEMs are reportedly already developing designs. This could broaden Ambarella’s customer base beyond its traditional integrated-SoC market. Ambarella Launches X7
• Positive Sentiment: Analyst commentary supports the product strategy. Rosenblatt said it appreciates Ambarella’s strategy, providing an additional positive signal for the X7 launch and the company’s broader push into efficient edge-AI computing. Rosenblatt on Ambarella
• Positive Sentiment: Partnerships improve software adoption and deployment. Ambarella is working with Ultralytics to bring YOLO computer-vision models to CVflow devices, while its ZEDEDA partnership will enable cloud-based deployment, security and management of AI workloads across large device fleets. Together, the collaborations could make Ambarella’s chips easier for developers and enterprises to use. Ambarella and Ultralytics Collaboration Ambarella and ZEDEDA Partnership
• Positive Sentiment: Developer access is being expanded through Google Cloud. Ambarella’s Developer Zone now offers a cloud-hosted IDE, remote access to live silicon and agentic-AI development tools powered by Google Cloud and Gemini Enterprise. Easier prototyping could accelerate customer design wins and ecosystem growth. Ambarella Developer Zone Expansion
• Neutral Sentiment: Coverage describes Ambarella as a potentially efficient beneficiary of the physical-AI trend, but the investment thesis depends on converting these products and partnerships into meaningful commercial revenue. Ambarella: Physical AI’s Hidden Efficiency Winner
• Negative Sentiment: Despite the bullish announcements, Ambarella remains unprofitable, with a negative price-to-earnings ratio and analysts expecting a full-year loss. The stock’s position below its moving averages indicates that investors may require evidence of design wins, shipments and improving profitability before assigning a higher valuation.

Ambarella Company Profile

Ambarella, Inc is a fabless semiconductor company that develops low-power system-on-chip (SoC) solutions for video processing and artificial intelligence at the edge. Its technology is designed to help devices capture, process, analyze and transmit high-quality video while reducing the need to send data to cloud-based systems.

The company’s product portfolio includes its CVflow family of AI vision processors, video processors and related software. These solutions support computer vision and machine learning applications in security cameras, automotive systems, advanced driver-assistance systems, robotics, industrial equipment and consumer devices.

Founded in 2004 and headquartered in Santa Clara, California, Ambarella serves customers and markets globally through its semiconductor products and technology partnerships.