
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc. demonstrated a strong financial performance in F3Q26, reporting record revenue of $108.5 million, marking a 31.2% year-over-year increase, which surpassed the company's own guidance and analyst expectations. The company is benefiting from rising average selling prices (ASPs) for its system-on-a-chip (SoC) solutions, with a 20% year-over-year increase in blended ASPs as the third generation of SoCs gains traction in its revenue mix. Additionally, the company's strategic focus on Edge AI applications is yielding positive results, evidenced by substantial growth in IoT revenue of over 45% year-over-year and ongoing automotive engagements, reinforcing a solid outlook for future revenue growth.
Bears say
Ambarella's financial outlook is negatively impacted by anticipated sequential declines in Automotive and IoT revenue, projected to fall in the mid- to high-single digits due to seasonality. The company's guidance for fourth quarter revenue suggests a decrease of approximately 8% quarter-over-quarter, despite a year-over-year increase, which reflects underperformance relative to historical trends and expectations. Additionally, gross margins are expected to decline, guided at 59.8% for F4Q26, lower than previous estimates, primarily due to a mix shift towards higher volume customers that are likely to command volume discounts, potentially affecting overall profitability.
This aggregate rating is based on analysts' research of Ambarella and is not a guaranteed prediction by Public.com or investment advice.
Ambarella (AMBA) Analyst Forecast & Price Prediction
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