Investors should take a closer look at shares of Ambarella, a mid-cap partner of Ford, based on analyst views compiled by the Investor’s Business Daily. Investment bank Craig-Hallum describes Ambarella as “a leader in the AI market,” while Rosenblatt says it is “encouraged by a strong design pipeline.”
Details
Wall Street has been warming to Ambarella, IBD reports. The stock carries nine “buy” ratings versus three “hold” recommendations, according to TipRanks. The average target price of $96.60 per share implies nearly 10% upside from the close on Friday, November 14.
Ambarella is “a leader in the AI market, although not thought of this way by most investors, specifically within inferencing at the edge," wrote Craig-Hallum Senior Analyst Richard Shannon in a note quoted by IBD. He sees this as a future growth driver within the AI market. Shannon’s price target is $105 per share, the highest on Wall Street and 19.5% above current quotes.
Ambarella has “AI product momentum,” Rosenblatt Senior Analyst Kevin Cassidy wrote in a separate note, also quoted by IBD. He said he is “encouraged by a strong design pipeline.” His target price is $100 per share, for 13.8% upside.
About the business
Ambarella specializes in so-called "edge AI." The company designs systems-on-chip (SoCs), which are semiconductor solutions capable of performing complex tasks directly on devices, as IBD explains. Its products are used in a wide variety of human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving, and robotics applications. Clients include Ford, Kodiak AI, and LG.
Cassidy says adoption of the company's 5nm SoCs in edge AI applications is fueling year-over-year growth, driven both by higher average selling prices and by increased unit shipments.
In the second quarter of fiscal 2026 (ended July 31), revenue rose nearly 50% year over year to $95.5 million. The net loss shrank to roughly 57% of the year-earlier figure, down 42.6% at $20 million, or to about 55% of the prior loss per share, at $0.47 per share. Wall Street expects Ambarella to deliver full-year earnings of $0.49 per share versus a loss of $0.16 a year earlier.
Ambarella will report its third-quarter results on November 25.
The AI translation of this story was reviewed by a human editor.
