Ambarella, Inc. (AMBA) AI Stock Analysis

Ambarella, Inc. specializes in developing semiconductor solutions tailored for high-definition (HD) and ultra HD video compression, image processing, and deep neural network processing on a global scale. The company's system-on-a-chip designs combine HD video processing, artificial intelligence-driven computer vision algorithms, audio processing capabilities, and system functions onto a single chip. Its solutions serve automotive applications including video recorders, electronic mirrors, ADAS cameras, cabin monitoring systems, and driver monitoring systems. Ambarella also serves professional and home IP security camera markets, robotics, industrial sectors, and consumer electronics such as wearable body cameras and drones. The company sells globally to ODMs and OEMs through a direct sales force and distribution network.

Ambarella posted revenue of $390.7M in FY2026, up 37.2% following a 25.8% gain to $284.9M in FY2025 and a 32.9% drop to $226.5M in FY2024. Over the 5-year span from FY2021 to FY2026, revenue increased at an 11.9% CAGR. Gross margin has steadily compressed from 62.7% in FY2022 to 58.0% in FY2026. The company has reported operating losses throughout this period, though operating margin improved to -21.1% in FY2026 from -44.4% in FY2025. Net income stood at -$75.9M in FY2026 with an EPS of $0.14. For the trailing twelve months ended July 31, 2026, revenue reached $417.8M, with quarterly revenue growing 13.2% year-over-year and profit margin at -13.5%.

As of July 31, 2026, Ambarella held $272.3M in cash and short-term investments against $12.6M in total debt, resulting in a net cash position of $259.7M. The company's balance sheet showed a current ratio of 2.85 and a debt-to-equity ratio of 0.02, backed by $620.3M in shareholders' equity and $780.2M in total assets. During FY2026, operating cash flow rose to $73.5M. Ambarella spent $15.5M on capital expenditures, delivering $58.0M in free cash flow, while directing $1.0M toward share buybacks. Its share count increased 12.7% over five years.

Ambarella trades at a forward P/E of 84.7x, substantially above the median of its US-listed Technology peers of 18.8x. Its price-to-sales multiple of 6.5x also trades at a premium to the peer median of 2.8x. Ambarella has an enterprise value of $2.73B and an EV-to-revenue ratio of 6.5x. The stock has underperformed broader benchmarks, dropping 26.6% over the past year compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock dropped 63.1% while the S&P 500 gained 83.0%.

Wall Street analysts cover Ambarella with 4 Strong Buy, 2 Buy, and 8 Hold recommendations, with zero Sell ratings. The mean price target of $89.36 implies 44.8% upside compared to the October 16, 2026 close of $61.70. For the fiscal year ending January 31, 2027, consensus estimates call for revenue of $441.0M and EPS of $0.80, representing 29.7% EPS growth. For the subsequent year, 13 analysts project revenue of $499.9M and EPS of $1.12. Ambarella beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 24, 2026.

This page is an AI-written research summary of Ambarella, Inc. (AMBA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AMBA income statement, AMBA balance sheet, AMBA key metrics, AMBA analyst forecast, AMBA chart. See the AMBA stock overview for the latest quote and news.