Ambarella (AMBA) Gets Bullish Ratings from Analysts

Core Viewpoint - Ambarella, Inc. (NASDAQ:AMBA) is gaining positive attention from analysts, with increased price targets and bullish ratings following strong financial results and promising guidance for future growth [1][3][4]. Financial Performance - Ambarella reported strong results for the second quarter of fiscal year 2026, leading to an increase in price targets by Needham from $90 to $100 and by Morgan Stanley from $80 to $96 [1][3]. - The 12-month median price target set by analysts is $96, indicating a potential upside of 15.76% from the current stock price as of September 19 [4]. Growth Drivers - The primary growth driver for Ambarella is expected to be the Internet of Things (IoT), with a significant automotive design win anticipated around 2027-2028 [2]. - Near-term growth is being fueled by edge-based AI applications in sectors such as portable video, drones, and enterprise infrastructure [3]. Company Overview - Ambarella is a fabless semiconductor design company specializing in low-power and high-resolution video compression, image processing, and deep neural network processors [5]. - The company's products are utilized in various applications, including video security, advanced driver assistance systems (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and robotics [5].