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Roth Capital Raises Ambarella (AMBA) PT to $85 on Strong Q2 Performance, Edge AI Growth
AmbarellaAmbarella(US:AMBA) Yahoo Financeยท2025-09-16 18:58

Financial Performance - Ambarella reported revenue of $95.5 million for FQ2 2026, representing a 49.9% year-over-year increase and an 11.2% sequential increase [2] - The company's cash and marketable securities increased by $1.8 million from the prior quarter, totaling $261.2 million [2] Analyst Sentiment - Roth Capital raised Ambarella's price target to $85 from $65 while maintaining a Neutral rating on the shares [1] - The positive sentiment is attributed to strong financial growth and demand for non-auto Edge AI applications [1][3] Market Trends - Ambarella is experiencing strong demand for its 5-nanometer AI System-on-Chips/SoCs, which are contributing to higher average selling prices [3] - The company's edge AI applications are expanding into new markets, including portable video and robotic aerial drones [3] - Although the automotive market's adoption rate is slower, Ambarella continues to invest in both automotive and IoT sectors due to their similar hardware architecture [3]