Update shared on 13 Nov 2025
Ambarella's analyst price target has risen sharply, with several firms lifting their outlooks by $10 to $30 per share. Analysts cite strong Q2 results, expanding IoT applications, and momentum in Edge AI design wins as key growth drivers.
Analyst Commentary
Recent analyst reports reflect a broadly positive shift in Ambarella's outlook, though opinions remain divided regarding the scope and sustainability of future growth. Many have raised their price targets, citing strong execution and new engine growth in the Internet of Things and Edge AI markets.
Bullish Takeaways- Bullish analysts highlight Ambarella's robust Q2 performance, which exceeded expectations and strengthened confidence in near-term revenue momentum.
- The company’s ongoing expansion of Edge AI applications, especially in portable video, drones, and enterprise infrastructure, is seen as a key driver of incremental growth and higher average selling prices.
- Recent design wins reveal diversification within the IoT segment, moving beyond security cameras, and support forecasts for continued outperformance into fiscal 2027.
- Raised full-year revenue guidance and an expanding total addressable market, particularly in autonomous robotics and 360-degree cameras, contribute positively to Ambarella’s valuation outlook.
- Bearish analysts remain cautious given continued softness in automotive end markets, which offset some of the optimism in Edge AI and IoT.
- Despite upward price target revisions, some maintain a Neutral stance, citing the need for a significant automotive design win to sustain long-term growth rates.
- There is wariness about execution risks as new product cycles ramp, and about whether current momentum can be maintained once the initial wave of Edge AI adoption normalizes.
- Adjusted sales projections, while higher for coming years, still reflect uncertainty related to sector-specific headwinds and competition.
What's in the News
- Ambarella raised its full-year 2026 revenue growth estimate to a range of 31% to 35%, targeting approximately $379 million at the midpoint (Key Developments).
- The company issued earnings guidance for Q3 2025, anticipating revenues between $100 million and $108 million (Key Developments).
- As of July 31, 2025, Ambarella completed the repurchase of 49,871 shares, representing 0.13% of its stock for $2 million as part of the buyback program announced in 2019 (Key Developments).
Valuation Changes
- Fair Value remained unchanged at $93.73 per share, indicating stable market assessments despite recent developments.
- Discount Rate rose slightly from 10.09% to 10.50%, reflecting a modest increase in perceived risk or required return by analysts.
- Revenue Growth projections were nearly flat, holding steady at approximately 14.88%.
- Net Profit Margin increased from 13.69% to 14.68%, suggesting improved profitability outlook for the company.
- Future Price/Earnings (P/E) ratio fell from 77.87x to 73.47x, indicating adjusted expectations for valuation multiples moving forward.
Disclaimer
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