Ambarella (NASDAQ:AMBA) Trading Up 7.2% – What’s Next?

Ambarella, Inc. (NASDAQ:AMBA) traded up 7.2% on Wednesday . The stock traded as high as $67.48 and last traded at $68.0790. Approximately 250,645 shares changed hands during trading, a decline of 81% from the average session volume of 1,299,333 shares. The stock had previously closed at $63.48.

Ambarella News Roundup

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella’s Q2 fiscal 2027 earnings call highlighted record edge-AI revenue and management’s $22.9 billion serviceable available market forecast, reinforcing the long-term growth opportunity in AI-enabled vision chips. Ambarella Q2 2027 Earnings Call Transcript
• Positive Sentiment: Northland Securities raised its EPS forecasts for fiscal 2027 to $(1.08) from $(1.10) and fiscal 2028 to $(0.67) from $(0.78). The firm also improved its estimates for Q3 2027, Q1 2028 and Q4 2028, suggesting expectations for smaller losses over time.
• Positive Sentiment: Shares had recently risen 8.3%, reflecting stronger momentum and investor attention around Ambarella’s AI opportunity. A GuruFocus report characterized the company’s fundamentals favorably, citing a GF Score of 76. Ambarella Shares Surge 8.3%
• Neutral Sentiment: Northland lowered its Q4 2027 EPS forecast modestly to $(0.28) from $(0.26), partially offsetting the broader improvement in its estimates.
• Neutral Sentiment: The reported short-interest data shows zero shares short and a zero-day days-to-cover ratio, alongside an “NaN” percentage change. This appears incomplete or erroneous and offers little meaningful trading information.

Analyst Upgrades and Downgrades

AMBA has been the subject of several recent analyst reports. Needham & Company LLC reiterated a “buy” rating on shares of Ambarella in a research note on Friday, September 4th. Rosenblatt Securities reissued a “buy” rating and issued a $120.00 price objective on shares of Ambarella in a research note on Monday, August 31st. Oppenheimer restated a “market perform” rating on shares of Ambarella in a report on Friday, September 4th. Northland Securities set a $101.00 target price on Ambarella in a research report on Wednesday, June 17th. Finally, Bank of America lowered their price target on Ambarella from $96.00 to $70.00 and set a “neutral” rating on the stock in a report on Friday, September 4th. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $89.56.

Ambarella Stock Performance

The stock’s 50-day simple moving average is $73.20 and its two-hundred day simple moving average is $68.19. The stock has a market cap of $3.00 billion, a price-to-earnings ratio of -52.61 and a beta of 2.09.

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

Insider Transactions at Ambarella

In other news, VP Chi-Hong Ju sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $88.84, for a total transaction of $888,400.00. Following the completion of the transaction, the vice president directly owned 155,924 shares in the company, valued at $13,852,288.16. The trade was a 6.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Chan W. Lee sold 2,951 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the sale, the insider directly owned 157,098 shares of the company’s stock, valued at $10,662,241.26. This represents a 1.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 48,663 shares of company stock worth $3,934,531. Insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Ambarella

Several hedge funds and other institutional investors have recently modified their holdings of AMBA. Royal Bank of Canada raised its stake in Ambarella by 2.1% during the 1st quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock valued at $3,258,000 after purchasing an additional 1,307 shares during the last quarter. Advisors Asset Management Inc. grew its position in Ambarella by 44.1% in the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 286 shares during the last quarter. AQR Capital Management LLC grew its position in Ambarella by 126.6% in the 1st quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company’s stock worth $4,272,000 after purchasing an additional 47,414 shares during the last quarter. Empowered Funds LLC increased its holdings in shares of Ambarella by 34.6% during the 1st quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock worth $344,000 after purchasing an additional 1,758 shares during the period. Finally, Intech Investment Management LLC increased its holdings in shares of Ambarella by 48.1% during the 1st quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock worth $1,288,000 after purchasing an additional 8,306 shares during the period. Institutional investors and hedge funds own 82.09% of the company’s stock.

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.