Ambarella (NASDAQ:AMBA) Announces Earnings Results

Ambarella (NASDAQ:AMBA) posted its quarterly earnings data on Thursday. The semiconductor company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.17 by $0.01, Briefing.com reports. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The firm had revenue of $108.12 million during the quarter, compared to the consensus estimate of $107.76 million. During the same period in the prior year, the business earned $0.15 EPS. The firm’s revenue was up 13.2% compared to the same quarter last year.

Here are the key takeaways from Ambarella’s conference call:

• Second-quarter revenue reached $108.1 million, up 7.7% sequentially and 13.2% year over year, while non-GAAP EPS was $0.18. Automotive revenue set a record, led by commercial vehicles, and IoT also grew sequentially.
• Ambarella raised its rolling five-year serviceable addressable market outlook to $22.9 billion by fiscal 2032, implying approximately 20% CAGR versus about 18% previously. The increase is primarily attributed to new edge-infrastructure products, including AI accelerators, as well as robotics, enterprise security, and portable video opportunities.
• The company announced partnerships with Capgemini and Macnica to expand indirect sales, system integration, and software ecosystems across enterprise, robotics, industrial, retail, and other edge-AI markets. Ambarella expects meaningful revenue from these channels in two to three years and cited potential revenue of roughly $500 million from each partnership over seven years.
• Ambarella previewed its sampling X7 standalone AI accelerator, designed to work alongside Ambarella, Arm, or x86 host processors with a targeted 4–5 watt power envelope. The company also said its first semi-custom 2-nanometer CVAS SoC is expected to generate initial production revenue in fiscal 2028.
• Memory shortages and rising prices are creating supply-chain uncertainty, particularly for fourth-quarter customer orders, even though Ambarella does not directly bear the memory cost. Management plans to pass its own higher supply-chain costs to customers while maintaining its 59%–62% long-term gross-margin target.

Ambarella Stock Down 5.6%

Shares of AMBA opened at $63.38 on Friday. Ambarella has a 52-week low of $48.30 and a 52-week high of $96.69. The company has a 50-day simple moving average of $74.31 and a 200-day simple moving average of $68.23. The company has a market capitalization of $2.78 billion, a PE ratio of -39.37 and a beta of 2.09.

Ambarella News Summary

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 2027 revenue of $108.1 million, up 13.2% year over year, and non-GAAP earnings of $0.18 per share, narrowly exceeding consensus estimates. GAAP net loss improved substantially to $6.7 million from $20.0 million a year earlier. Ambarella fiscal second-quarter results
• Positive Sentiment: Management forecast fiscal Q3 revenue of $115 million to $124 million, roughly in line with the $119.3 million analyst consensus, while citing record edge-AI revenue and strong demand for its 5nm CV75 and CV72 AI SoCs. Ambarella Q3 revenue outlook
• Positive Sentiment: New long-term agreements with Macnica and Capgemini are intended to expand Ambarella’s distribution, engineering and systems-integration reach across the Americas, EMEA and enterprise edge- and physical-AI markets. The initiatives could support future design wins and revenue growth, although financial contributions were not quantified. Ambarella Macnica agreement
• Neutral Sentiment: Bank of America analyst Vivek Arya reiterated a Hold rating, citing Ambarella’s elevated valuation and near-term uncertainty around margins, with only modest upside to his price objective. Bank of America Ambarella rating
• Negative Sentiment: GAAP gross margin fell to 57.7% from 58.9% year over year, and management expects Q3 non-GAAP gross margin of 59% to 60%, signaling limited near-term profitability expansion.
• Negative Sentiment: Despite improved adjusted profitability, Ambarella remains GAAP-unprofitable, and its cash balance declined modestly from the prior quarter. Ongoing investment in products and market expansion may continue to weigh on earnings.

Insider Activity

In other Ambarella news, insider Chan W. Lee sold 2,951 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $200,284.37. Following the completion of the sale, the insider directly owned 157,098 shares in the company, valued at $10,662,241.26. The trade was a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Chi-Hong Ju sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $88.84, for a total value of $888,400.00. Following the completion of the transaction, the vice president directly owned 155,924 shares in the company, valued at $13,852,288.16. This trade represents a 6.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 58,519 shares of company stock worth $4,595,475 in the last quarter. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ambarella

A number of hedge funds have recently bought and sold shares of the business. Advisory Services Network LLC purchased a new position in shares of Ambarella during the 3rd quarter valued at approximately $33,000. EverSource Wealth Advisors LLC raised its holdings in Ambarella by 362.2% in the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 326 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its stake in Ambarella by 162.5% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock valued at $37,000 after acquiring an additional 325 shares during the last quarter. Quarry LP grew its holdings in Ambarella by 78.2% during the 3rd quarter. Quarry LP now owns 793 shares of the semiconductor company’s stock worth $65,000 after acquiring an additional 348 shares in the last quarter. Finally, Advisors Asset Management Inc. increased its position in shares of Ambarella by 44.1% in the 1st quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 286 shares during the last quarter. Institutional investors and hedge funds own 82.09% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Susquehanna upped their price target on Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research note on Friday, May 29th. Stifel Nicolaus set a $106.00 price objective on shares of Ambarella in a research note on Friday, May 29th. Weiss Ratings upgraded shares of Ambarella from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, July 10th. Consumer Edge restated a “buy” rating on shares of Ambarella in a research note on Friday, May 22nd. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Ambarella in a report on Friday. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $101.86.

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.