Ambarella Inc reported strong third-quarter results, with a non-GAAP EPS of $0.27, exceeding estimates by $0.06, and revenue of $108.45 million, a 31.2% year-over-year increase. However, the stock dropped about 12.73% during regular trading.
Analysts praised the company's performance, particularly in the IoT sector, but concerns over lower gross margins due to a shift towards high-volume customers may have contributed to the stock's decline. Despite the positive earnings report, Ambarella's stock fell significantly in premarket trading.
The broader market saw gains, with the Nasdaq-100 up 0.67% and the S&P 500 up 0.51%, indicating that Ambarella's decline was not reflective of overall market sentiment. Investors may be cautious about future guidance, which anticipates a slight decline in revenue for the upcoming quarter.
Wall Street analysts forecast AMBA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMBA is 96.70 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast AMBA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMBA is 96.70 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 66.690
Low
80.00
Averages
96.70
High
115.00
Current: 66.690
Low
80.00
Averages
96.70
High
115.00
BofA
Neutral
downgrade
$92 -> $85
2025-12-16
Reason
BofA
Price Target
$92 -> $85
AI Analysis
2025-12-16
downgrade
Neutral
Reason
BofA lowered the firm's price target on Ambarella to $85 from $92 and keeps a Neutral rating on the shares. The firm is updating its price targets for U.S. Semiconductor stocks under its coverage, the analyst tells investors. BofA views 2026 as a midpoint for an 8 to 10 year journey upgrading traditional IT infrastructure for faster, AI workloads. While stocks may remain choppy amid greater scrutiny of AI returns and hyperscaler cash flows, this should be offset by faster large language model builders and AI factories, the firm adds.
Rosenblatt
Kevin Cassidy
Buy
maintain
$100 -> $115
2025-11-26
Reason
Rosenblatt
Kevin Cassidy
Price Target
$100 -> $115
2025-11-26
maintain
Buy
Reason
Rosenblatt analyst Kevin Cassidy raised the firm's price target on Ambarella to $115 from $100 and keeps a Buy rating on the shares following what the firm calls "another strong quarter." Demand for its edge AI solutions continues to grow and a key driver of this momentum is the expanding and diversifying customer base, says the analyst, who also sees significant potential for Ambarella in the evolution of autonomous robotics.
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Deutsche Bank
Ross Seymore
Hold
maintain
$65 -> $80
2025-11-26
Reason
Deutsche Bank
Ross Seymore
Price Target
$65 -> $80
2025-11-26
maintain
Hold
Reason
Deutsche Bank analyst Ross Seymore raised the firm's price target on Ambarella to $80 from $65 and keeps a Hold rating on the shares.
Roth Capital
Neutral
maintain
$85
2025-11-26
Reason
Roth Capital
Price Target
$85
2025-11-26
maintain
Neutral
Reason
Roth Capital keeps a Neutral rating with $85 price target on Ambarella but notes that the company reported a solid beat and raise with growth from non-auto Edge AI applications supporting revenue momentum for the company. Roth expects a broadening of edge AI applications from which the company is securing design wins, driving both average selling price uplift and diversification, the analyst tells investors in a research note.
About AMBA
Ambarella, Inc. is a developer of low-power system-on-a-chip (SoC) semiconductors and software for edge artificial intelligence (AI) applications. The Company's technologies make electronic systems smarter, enabling them to become partially or fully autonomous with features, such as person detection, object classification, and analytics, in addition to performing complex data analysis in real time, delivering imagery, and preserving vital system resources, such as power and network bandwidth. It specializes in the development of deployable, scalable designs for intelligent electronic systems that utilize high-bandwidth sensors. Its products are used in a variety of human viewing, computer vision and edge AI applications, including a variety of automotive camera systems, video security cameras, mobile and fixed robots, industrial applications, and consumer devices, such as action, drone, and 360-degree cameras.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
