AmbarellaBSP:A2MB34 -1.69%47 Gross Margin % is 58.38% as of Apr. 2026, which is 4% below its 10-year median of 60.73. GuruFocus rates BSP:A2MB34 with a GF Score™ of 47/100 and a GF Value™ of R$16.29 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,011 Semiconductors companies, Ambarella ranks better than 91.59% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ambarella's Gross Profit for the
three
months ended in Apr. 2026 was R$295 Mil. Ambarella's Revenue for the
three
months ended in Apr. 2026 was R$505 Mil. Therefore, Ambarella's Gross Margin % for the quarter that ended in Apr. 2026 was 58.38%.
The historical rank and industry rank for Ambarella's Gross Margin % or its related term are showing as below:
BSP:A2MB34'
s Gross Margin % Range Over the Past 10 Years
Min: 58.02 Med: 60.73 Max: 66.07
Current: 58.82
During the past 13 years, the highestGross Margin % of Ambarella was 66.07%. The lowest was 58.02%. And the median was 60.73%.
BSP:A2MB34's Gross Margin % is ranked better than 91.59% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs BSP:A2MB34: 58.82
Ambarella had a gross margin of 58.38% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ambarella was -0.80% per year.
Ambarella (BSP:A2MB34) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ambarella had a gross margin of 58.38% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ambarella Gross Margin % Related Terms
Ambarella Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ambarella's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:A2MB34 vs AEHR, VECO, UCTT: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Ambarella's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ambarella Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Ambarella's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ambarella's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ambarella (BSP:A2MB34) has a Gross Margin % of 58.38% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambarella and its competitors. This is near median its historical median of 60.73. Over the past decade, Ambarella's Gross Margin % has ranged from 58.02 to 66.07. According to the industry distribution chart, Ambarella ranks #85 out of 1011 companies in the Semiconductors industry, placing it in the top 8.4%.
Is Ambarella's Gross Margin % too high?
Ambarella's current Gross Margin % of 58.38% is near median its 10-year median of 60.73. Over the past 10 years, this metric has ranged from a low of 58.02 to a high of 66.07. The Semiconductors industry median Gross Margin % is 29.61. Ambarella's value of 58.38% is 97.2% above this industry median. Based on the distribution chart, Ambarella ranks #85 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Ambarella has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambarella's Gross Margin % compare to AEHR and VECO?
According to the Semiconductors industry distribution chart, Ambarella ranks #85 out of 1011 companies for Gross Margin %. This places Ambarella in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Ambarella's value of 58.38% is 97.2% above this benchmark. Historically, Ambarella's own Gross Margin % has ranged from 58.02 to 66.07 over the past decade. While the company's 10-year median is 60.73 vs. the industry median of 29.61, Ambarella has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambarella's current Gross Margin % of 58.38% is 97.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambarella and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambarella's current Gross Margin % is 58.38%, which is near median its own 10-year median of 60.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambarella stock overvalued right now?
Based on GuruFocus' analysis, Ambarella (BSP:A2MB34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$16.29, compared to a current price of R$13.38 — trading 17.9% below its estimated fair value. The current Gross Margin % is 58.38%, which is near median its 10-year median of 60.73 and 97.2% above the Semiconductors industry median of 29.61. Ambarella's overall GF Score™ is 47/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ambarella (BSP:A2MB34), the current Gross Margin % is 58.38% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ambarella (BSP:A2MB34) Overvalued in 2026?
Based on GuruFocus' analysis, Ambarella stock appears to be undervalued.
The current stock price of R$13.38 is trading 17.9% below its estimated GF Value™ of R$16.29.
GuruFocus considers Ambarella to be Modestly Undervalued.
Key valuation signals for BSP:A2MB34:
Gross Margin %: 58.38% (near median its 10-year median of 60.73)
GF Value™: R$16.29 vs. price of R$13.38 (17.9% below fair value)
Industry Position: 97.2% above the Semiconductors median (#85 of 1011)
No single metric tells the full story. See the BSP:A2MB34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambarella Inc is a developer of low-power system-on-a-chip, or SoC, semiconductors and software for edge and physical artificial intelligence (AI) applications and intelligent automation. Its products are used in a wide variety of human viewing, computer vision for edge and physical AI applications, including a variety of video security cameras, automotive camera systems, fixed robots, autonomous mobile robots (AMRs), industrial applications, intelligent transportation systems, and consumer devices, such as action, drone and 360 degree cameras. The company operates as a single operating and reportable segment and derives substantially all of its revenue from development and sales of low-power AI-based processing and video and image processing SoC solutions.
47GF Score
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