Ambarella (AMBA, Financial) announced impressive first-quarter revenue figures, reaching $85.87 million, surpassing expectations of $84.01 million. The company, a leader in the edge AI market, marked its fourth consecutive quarter of record AI revenue, hitting the upper half of the Q1 revenue guidance range. In light of its performance and ongoing innovations, Ambarella has revised its fiscal 2026 revenue growth forecast upward, projecting an increase between 19% and 25%, approximately $348 million at the midpoint. This updated outlook accounts for current geopolitical uncertainties.
Under the leadership of President and CEO Fermi Wang, Ambarella continues to advance its technology, particularly in low-power and scalable third-generation AI silicon and software architecture. These advancements are facilitating the development of a new System on Chip (SoC), aimed at expanding the company's footprint in the edge AI infrastructure sector. This strategic focus underscores Ambarella's commitment to maintaining its competitive edge in the rapidly evolving market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Ambarella Inc (AMBA, Financial) is $78.88 with a high estimate of $110.00 and a low estimate of $49.60. The average target implies an upside of 27.23% from the current price of $62.00. More detailed estimate data can be found on the Ambarella Inc (AMBA) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Ambarella Inc's (AMBA, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ambarella Inc (AMBA, Financial) in one year is $73.66, suggesting a upside of 18.81% from the current price of $62. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ambarella Inc (AMBA) Summary page.
