Ambarella Stock Declines Despite Strong Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: Yahoo Finance
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.
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Analyst Views on AMBA
Wall Street analysts forecast AMBA stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 79.730
Low
80.00
Averages
96.70
High
115.00
Current: 79.730
Low
80.00
Averages
96.70
High
115.00
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.
Ambarella Senior VP Sells Shares, Market Reacts Positively
- Executive Share Sale: Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares on July 1, 2026, for $888,000, representing 5.75% of his holdings, indicating a strategic timing decision by the executive.
- Updated Holdings: Post-transaction, Ju Chi-Hong's direct shares stand at 155,924, while indirect shares remain unchanged, reflecting a strategy to diversify his asset portfolio amidst market fluctuations.
- Company Performance Growth: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management guiding for next quarter's revenue between $105 million and $111 million, showcasing robust market performance.
- Buyback Plan and Profit Outlook: The board has authorized a $50 million stock buyback plan, and while the company still faces GAAP losses, non-GAAP earnings improved to $0.11 per share, with the CEO expressing optimism about strong demand signals for edge AI, indicating potential for future profitability.
See More
Ambarella Executive Sells 10,000 Shares of Stock
- Transaction Scale Analysis: On July 1, 2026, Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares at $88.84 each, totaling $888,400, which is significantly larger than his average sell size of approximately 3,569 shares, indicating a strategic market timing.
- Impact on Holdings: Following this transaction, Ju Chi-Hong's direct holdings decreased by 5.75%, leaving him with 155,924 shares, which, despite the reduction, still reflects a substantial stake, suggesting confidence in the company's future prospects.
- Market Performance Comparison: The weighted average sale price was above the market close of $88.34 on July 1, 2026, and approximately 6.2% higher than the opening price of $83.63, indicating a strategic reduction in holdings during a price increase.
- Strong Company Fundamentals: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management forecasts next quarter's revenue between $105 million and $111 million, highlighting the company's potential for sustained profitability amid strong edge AI demand.
See More
Ambarella Executive Sells 10,000 Shares of Stock
- Transaction Scale Analysis: On July 1, 2026, Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares of common stock for a total value of $888,400, which is significantly larger than his historical average sale size of approximately 3,569 shares, indicating a strategic market timing decision.
- Impact on Holdings: Following this transaction, Ju Chi-Hong's direct holdings decreased by 5.75%, leaving him with 155,924 shares, which, despite the reduction, still reflects a substantial control over the company, showcasing his confidence in Ambarella's future.
- Market Price Comparison: The weighted average sale price was $88.84 per share, approximately 6.2% higher than the market close of $88.34 on July 1, 2026, indicating a strategic sell-off by the executive during a price increase, suggesting sensitivity to short-term market fluctuations.
- Company Fundamentals Outlook: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management guiding for next quarter's revenue between $105 million and $111 million, indicating strong growth potential in the rapidly expanding edge AI market.
See More
Ambarella, Inc. Rated as Top Robotics Stock by Analysts
- Rating Reaffirmed: On May 29, Rosenblatt reiterated a Buy rating on Ambarella (NASDAQ:AMBA) with a $120 price target, reflecting optimism about the increasing demand for the company's CV SoC platforms driven by AI model applications at the network edge.
- Strategic Partnership: Ambarella has signed a 10-year deal with Hanwha Group for the co-development and sourcing of multiple AI SoC platforms, which has the potential to generate up to $800 million in revenue, further solidifying its market position in robotics and edge applications.
- Technological Edge: The company's 5nm, 4nm, and soon-to-be-released 2nm AI SoC technologies are designed for energy-efficient, high-performance applications, making them well-suited for various edge applications, enhancing their competitive advantage in the market.
- Market Outlook: Northland reiterated an Outperform rating on Ambarella on June 17 with a $101 price target, indicating analysts' optimism regarding the company's prospects in artificial intelligence applications, which is likely to attract more investor interest in the stock.
See More
Ambarella Positioned as Top Pick in Physical AI Market
- Market Outlook: Rosenblatt identifies Ambarella as one of the clearest ways for investors to gain exposure to the rapidly growing physical AI market, anticipating that its AI vision processors will play a crucial role in edge computing applications, driving future growth.
- Buy Rating Maintained: Rosenblatt reiterated its 'Buy' rating on Ambarella and set a price target of $120, implying about 79% upside from Monday's close, reflecting strong confidence in the company's long-term growth prospects.
- Retail Sentiment Shift: On Stocktwits, retail sentiment for AMBA shifted from 'bearish' to 'bullish', with message volume surging 1,650% over the past week, indicating a sustained increase in retail investor interest in the stock.
- Wide Application Scenarios: Analysts highlighted that Ambarella's high-performance, low-power AI vision processors have extensive applications in surveillance, robotics, industrial automation, drones, and autonomous systems, further solidifying its market position.
See More
Analysts Recommend Investing in Tech Stocks for Returns
- Strong Market Momentum: As of midday Tuesday, the S&P 500 has risen 9.5% in the first half of 2026, achieving 24 all-time highs, indicating robust performance across multiple sectors, particularly technology, healthcare, and finance, suggesting a continued upward trend in the second half.
- Ambarella's Promising Outlook: Analyst Kevin Cassidy from Rosenblatt highlights Ambarella's significant exposure to the physical AI industry, predicting a substantial rally in the second half with a price target of $120, representing a 79% upside from Monday's close, following a 74% surge in the past three months.
- Quantinuum's Huge Potential: Analyst John McPeake notes that Quantinuum's stock appears undervalued and could double in the second half, with a target price of $155, suggesting a 113% upside from Monday's close; despite trading at a 52% discount to peers, it possesses the world's most powerful quantum computer, providing a competitive edge.
- Twilio's Continued Growth: Analyst Catharine Trebnick indicates that Twilio is set for further gains as it integrates AI into voice products, with a target price of $230 implying a 16% upside from Monday's close, and a 68% increase in the past three months, showcasing significant cross-selling opportunities within its product portfolio.
See More
Ambarella Senior VP Sells Shares, Market Reacts Positively
- Executive Share Sale: Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares on July 1, 2026, for $888,000, representing 5.75% of his holdings, indicating a strategic timing decision by the executive.
- Updated Holdings: Post-transaction, Ju Chi-Hong's direct shares stand at 155,924, while indirect shares remain unchanged, reflecting a strategy to diversify his asset portfolio amidst market fluctuations.
- Company Performance Growth: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management guiding for next quarter's revenue between $105 million and $111 million, showcasing robust market performance.
- Buyback Plan and Profit Outlook: The board has authorized a $50 million stock buyback plan, and while the company still faces GAAP losses, non-GAAP earnings improved to $0.11 per share, with the CEO expressing optimism about strong demand signals for edge AI, indicating potential for future profitability.
See More
Ambarella Executive Sells 10,000 Shares of Stock
- Transaction Scale Analysis: On July 1, 2026, Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares at $88.84 each, totaling $888,400, which is significantly larger than his average sell size of approximately 3,569 shares, indicating a strategic market timing.
- Impact on Holdings: Following this transaction, Ju Chi-Hong's direct holdings decreased by 5.75%, leaving him with 155,924 shares, which, despite the reduction, still reflects a substantial stake, suggesting confidence in the company's future prospects.
- Market Performance Comparison: The weighted average sale price was above the market close of $88.34 on July 1, 2026, and approximately 6.2% higher than the opening price of $83.63, indicating a strategic reduction in holdings during a price increase.
- Strong Company Fundamentals: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management forecasts next quarter's revenue between $105 million and $111 million, highlighting the company's potential for sustained profitability amid strong edge AI demand.
See More
Ambarella Executive Sells 10,000 Shares of Stock
- Transaction Scale Analysis: On July 1, 2026, Ambarella's Senior VP Ju Chi-Hong sold 10,000 shares of common stock for a total value of $888,400, which is significantly larger than his historical average sale size of approximately 3,569 shares, indicating a strategic market timing decision.
- Impact on Holdings: Following this transaction, Ju Chi-Hong's direct holdings decreased by 5.75%, leaving him with 155,924 shares, which, despite the reduction, still reflects a substantial control over the company, showcasing his confidence in Ambarella's future.
- Market Price Comparison: The weighted average sale price was $88.84 per share, approximately 6.2% higher than the market close of $88.34 on July 1, 2026, indicating a strategic sell-off by the executive during a price increase, suggesting sensitivity to short-term market fluctuations.
- Company Fundamentals Outlook: Ambarella reported a 16.9% year-over-year revenue increase to $100.4 million in the latest quarter, with automotive revenue hitting an all-time high, and management guiding for next quarter's revenue between $105 million and $111 million, indicating strong growth potential in the rapidly expanding edge AI market.
See More
Ambarella, Inc. Rated as Top Robotics Stock by Analysts
- Rating Reaffirmed: On May 29, Rosenblatt reiterated a Buy rating on Ambarella (NASDAQ:AMBA) with a $120 price target, reflecting optimism about the increasing demand for the company's CV SoC platforms driven by AI model applications at the network edge.
- Strategic Partnership: Ambarella has signed a 10-year deal with Hanwha Group for the co-development and sourcing of multiple AI SoC platforms, which has the potential to generate up to $800 million in revenue, further solidifying its market position in robotics and edge applications.
- Technological Edge: The company's 5nm, 4nm, and soon-to-be-released 2nm AI SoC technologies are designed for energy-efficient, high-performance applications, making them well-suited for various edge applications, enhancing their competitive advantage in the market.
- Market Outlook: Northland reiterated an Outperform rating on Ambarella on June 17 with a $101 price target, indicating analysts' optimism regarding the company's prospects in artificial intelligence applications, which is likely to attract more investor interest in the stock.
See More
Ambarella Positioned as Top Pick in Physical AI Market
- Market Outlook: Rosenblatt identifies Ambarella as one of the clearest ways for investors to gain exposure to the rapidly growing physical AI market, anticipating that its AI vision processors will play a crucial role in edge computing applications, driving future growth.
- Buy Rating Maintained: Rosenblatt reiterated its 'Buy' rating on Ambarella and set a price target of $120, implying about 79% upside from Monday's close, reflecting strong confidence in the company's long-term growth prospects.
- Retail Sentiment Shift: On Stocktwits, retail sentiment for AMBA shifted from 'bearish' to 'bullish', with message volume surging 1,650% over the past week, indicating a sustained increase in retail investor interest in the stock.
- Wide Application Scenarios: Analysts highlighted that Ambarella's high-performance, low-power AI vision processors have extensive applications in surveillance, robotics, industrial automation, drones, and autonomous systems, further solidifying its market position.
See More
Analysts Recommend Investing in Tech Stocks for Returns
- Strong Market Momentum: As of midday Tuesday, the S&P 500 has risen 9.5% in the first half of 2026, achieving 24 all-time highs, indicating robust performance across multiple sectors, particularly technology, healthcare, and finance, suggesting a continued upward trend in the second half.
- Ambarella's Promising Outlook: Analyst Kevin Cassidy from Rosenblatt highlights Ambarella's significant exposure to the physical AI industry, predicting a substantial rally in the second half with a price target of $120, representing a 79% upside from Monday's close, following a 74% surge in the past three months.
- Quantinuum's Huge Potential: Analyst John McPeake notes that Quantinuum's stock appears undervalued and could double in the second half, with a target price of $155, suggesting a 113% upside from Monday's close; despite trading at a 52% discount to peers, it possesses the world's most powerful quantum computer, providing a competitive edge.
- Twilio's Continued Growth: Analyst Catharine Trebnick indicates that Twilio is set for further gains as it integrates AI into voice products, with a target price of $230 implying a 16% upside from Monday's close, and a 68% increase in the past three months, showcasing significant cross-selling opportunities within its product portfolio.
See More
