AMBA Should I Buy

Rosenblatt raised the firm's price target on Ambarella to $120 from $115 and keeps a Buy rating on the shares. The firm says applications for using AI models at the network edge is driving demand for Ambarella's computer vision system-on-chip platforms. The company's long-term agreement with Hanwha Group is a "significant shift from higher volume customers bringing SoC designs internally," the analyst tells investors in a research note. Rosenblatt believes the design complexity and need for flexibility brought on by AI applications will drive companies back to merchant system-on-chip designers like Ambarella. It recommends buying the stock for this "next phase in the Age of AI."