AMBA
Ambarella, Inc.

Ambarella, Inc.AMBA

Technology · Semiconductor Equipment & Materials
58.55USD
+6.13%
Nov 08, 2026
AMBA overview ready
Fabless supplier of low-power edge-AI vision processors for physical AI
Ambarella is a fabless supplier of specialized low-power edge-AI vision processors and related software for camera- and sensor-centric physical-world inference.
Primary theme is lagging
Edge AI & Embedded Processors is lagging (-14.1pp vs SPY over 21 sessions; 1 of 5 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Intense competition in semiconductor and AI processor markets.
Market Nov 6Filing Jul 31Price action Nov 7Research Oct 21

Conviction Level

PriceAction3.4BusinessPerformance4.0BusinessQuality4.2Valuation2.6ThemeMomentum1.0Decelerating — Revenue is still growing (+13% YoY), but growth has slowed for 3 consecutive quarters, down from +31%. The company is still loss-making: the diluted loss per share narrowed to -$0.15 from -$0.47 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−14.1pp
Theme return
−19.1%
Beating SPY
1 of 5
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$2.6B
Avg Volume (60D)
1.6M
60 sessions
Revenue Growth YoY
+37.2%
FY2026 vs FY2025
Gross Margin
+58.5%
Trailing twelve months
Operating Margin
-14.9%
Trailing twelve months
Free Cash Flow Yield
+0.4%
Distance from 200DMA
-13.0%
Next Earnings
2026-11-24
P/E
N/M
Market metrics as of Nov 6, 2026
Financial results for the period ended Jul 31, 2026
Filed balance-sheet data as of Jul 31, 2026

Business Performance

Decelerating

Revenue is still growing (+13% YoY), but growth has slowed for 3 consecutive quarters, down from +31%. The company is still loss-making: the diluted loss per share narrowed to -$0.15 from -$0.47 a year earlier.

Latest reported: Q2 FY2027, ended Jul 31
Revenue growthSlowing
+13%
$108M in Q2 FY2027 · YoY
YoY growth, last 4 quarters
  1. +31%
  2. +20%
  3. +17%
  4. +13%
Earnings growthLoss narrowing
-$0.15
Diluted EPS -$0.15 vs -$0.47 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
-7.5%
+15.5 pp YoY · gross margin 57.7% (-1.1 pp)

Business Quality

4.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
Ambarella, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. The business behind it shows an operating margin of -15%.

Company Research

Thesis
Ambarella is a fabless supplier of specialized low-power edge-AI vision processors and related software for camera- and sensor-centric physical-world inference. AMBA has a specific, direct exposure to the emerging shift from centralized AI processing toward local inference in vision-heavy physical systems.
Opportunity
Moderate opportunity
Adoption of low-latency, power-constrained AI processing near cameras, radar and other sensors for machines that must perceive and act in the physical world, including intelligent security, fleet systems, industrial automation, robotics and assisted driving.
Key risk
Intense competition in semiconductor and AI processor markets.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

Ambarella, Inc. designs and sells low-power system-on-a-chip semiconductors and software that enable edge and physical artificial intelligence applications, focusing on integrating advanced video, image, audio processing, and AI inference on a single chip.

How it earns

The company generates revenue primarily through transactional sales of its semiconductor chips and licensing of related software modules.

Products & services
CVflow system-on-a-chip (SoC)
AI neural processors
Vision processor SoCs
Central domain controllers
High-definition radars
Serializer/deserializers
Software module licenses
Customers & end markets
Robotics manufacturers
Industrial automation companies
Intelligent security providers
Fleet management systems
Automotive assisted driving developers
Market position

A mid-cap pure-play niche leader in edge-AI vision processors for machine vision and physical AI applications.

Demand drivers
Medium cyclicality

Demand is influenced by capital spending cycles in robotics, automotive, and industrial automation sectors.

Peers

Companies validated as economically comparable to AMBA — similar business, revenue model and scale.
PRICE ACTIONVALUATIONTHEME
Synaptics IncorporatedEstablished Trend — Daily AdvanceExpensive6.0MediumUnavailableNot in RS poolLocked$116.70+0.26%