
Ambarella (AMBA) Stock Forecast & Price Target
Ambarella (AMBA) Analyst Ratings
Bulls say
Ambarella Inc has demonstrated robust financial growth, with a revenue increase of 25.8% in FY25, reaching $284.9 million, driven particularly by a significant rise of over 30% in IoT revenue and steady growth in automotive sales. The company expanded its market presence by securing 10 OEM engagements across critical sectors such as IoT and Automotive during the quarter, highlighting strong demand for its innovative products. Looking ahead, Ambarella is projected to continue its growth trajectory in FY26, with anticipated revenue growth of approximately 17%, fueled by the promising CV5 and CV7 product families, alongside the flagship CV2 family expected to drive substantial revenue increases in the upcoming years.
Bears say
Ambarella Inc experienced a slight decline in Non-GAAP gross margin, dropping to 62.7% for FY25 from 63.3% in FY24, primarily due to shifts in product mix. Despite an increase in Internet of Things (IoT) revenue, the company's automotive segment is expected to see a sequential decline, compounded by a consistent negative trajectory in its legacy Video Processing business, which is projected to decline between 10-15% year-over-year. Additionally, ongoing issues with low production yields could further jeopardize revenue and profitability, leading to concerns about the firm’s long-term financial stability.
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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