Ambarella (NASDAQ:AMBA) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Ambarella (NASDAQ:AMBA) issued its earnings results on Thursday. The semiconductor company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01, Briefing.com reports. The company had revenue of $108.12 million for the quarter, compared to analysts’ expectations of $107.76 million. Ambarella had a negative net margin of 13.48% and a negative return on equity of 10.12%. The firm’s revenue was up 13.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.15 EPS.

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 Performance

Shares of Ambarella stock opened at $62.89 on Friday. The company has a 50-day simple moving average of $74.33 and a two-hundred day simple moving average of $68.20. The stock has a market capitalization of $2.76 billion, a PE ratio of -48.75 and a beta of 2.09. Ambarella has a 52-week low of $48.30 and a 52-week high of $96.69.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AMBA shares. Susquehanna boosted their target price on Ambarella from $80.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, May 29th. Oppenheimer restated a “market perform” rating on shares of Ambarella in a report on Friday. Bank of America decreased their target price on shares of Ambarella from $96.00 to $70.00 and set a “neutral” rating on the stock in a research note on Friday. Northland Securities set a $101.00 price target on shares of Ambarella in a report on Wednesday, June 17th. Finally, Consumer Edge reissued a “buy” rating on shares of Ambarella in a research report on Friday, May 22nd. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $89.56.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella reported fiscal Q2 revenue of $108.1 million, up 13.2% year over year and slightly above estimates, while non-GAAP EPS of $0.18 exceeded consensus. The company also forecast fiscal Q3 revenue of $115 million to $124 million, broadly in line with expectations. Ambarella fiscal Q2 results
• Positive Sentiment: Management highlighted record edge-AI revenue and announced long-term agreements with Macnica and Capgemini. The partnerships could expand distribution, systems integration, and enterprise adoption of Ambarella’s edge and physical AI products. Macnica strategic agreement
• Positive Sentiment: Stifel Nicolaus maintained a Buy rating and sees substantial potential appreciation despite reducing its price target from $106 to $90. Stifel price target update

Insider Activity at Ambarella

In related news, insider Chan Lee sold 2,951 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $67.87, for a total value of $200,284.37. Following the transaction, the insider directly owned 157,098 shares of the company’s stock, valued at approximately $10,662,241.26. This represents a 1.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO John Young sold 5,033 shares of Ambarella stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $67.54, for a total value of $339,928.82. Following the completion of the sale, the chief financial officer directly owned 112,590 shares of the company’s stock, valued at approximately $7,604,328.60. The trade was a 4.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 58,519 shares of company stock valued at $4,595,475 over the last ninety days. Corporate insiders own 4.50% of the company’s stock.

Institutional Trading of Ambarella

Large investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position in Ambarella by 2.1% during the first quarter. Royal Bank of Canada now owns 64,744 shares of the semiconductor company’s stock valued at $3,258,000 after purchasing an additional 1,307 shares in the last quarter. Advisors Asset Management Inc. raised its stake in shares of Ambarella by 44.1% in the first quarter. Advisors Asset Management Inc. now owns 935 shares of the semiconductor company’s stock worth $47,000 after buying an additional 286 shares during the period. AQR Capital Management LLC raised its stake in shares of Ambarella by 126.6% in the first quarter. AQR Capital Management LLC now owns 84,871 shares of the semiconductor company’s stock worth $4,272,000 after buying an additional 47,414 shares during the period. Empowered Funds LLC lifted its position in shares of Ambarella by 34.6% during the 1st quarter. Empowered Funds LLC now owns 6,838 shares of the semiconductor company’s stock valued at $344,000 after buying an additional 1,758 shares in the last quarter. Finally, Intech Investment Management LLC lifted its holdings in Ambarella by 48.1% during the first quarter. Intech Investment Management LLC now owns 25,586 shares of the semiconductor company’s stock valued at $1,288,000 after purchasing an additional 8,306 shares in the last quarter. 82.09% of the stock is currently owned by institutional investors.

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.