Ambarella Stock Buy or Sell? AMBA Stocks Forecast

Market Capitalization: 2 183 459 000 $
EBITDA: -120 896 000 $
Price to Earnings: None
Quarterly Earnings Growth YOY: N/A
Quarterly Revenue Growth YOY: -0.391
Trailing PE: -
Forward PE: 74.63
Shares Outstanding: 40248100

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Ambarella Stock Buy or Sell? AMBA Stocks Analytic Forecasts

Updated on February 24, 2024 (09:14)

Ambarella, Inc. (AMBA prediction charts) Sector: Technology

We present you the most up-to-date and complete review of analytical trend forecasts and views on the AMBA stock market. Experts share their opinions on what to expect from the Ambarella, Inc. stock market. How likely is the stock price to move in a bullish or bearish trend. Which should help you to make the right decision whether to Buy or Sell Ambarella stocks.

Ambarella, Inc. Stock Market Experts’ Analysis and Forecasting – Sell or Buy AMBA Shares?

The most recent analytical view which can help you to answer the worrying question: Should I Buy Stocks Now or Wait? came out under the authorship of Jay Capital and is titled

“Ambarella: Shift Forward To FY26, And Upgrade To Buy”

is published on January 10 (2024) and has 0 likes. The review predicts Bullish market trend.

It summarize the following theses:

  • I upgrade my rating from hold to buy due to potential turnaround signs, including positive inventory trends and 4Q23 guidance.
  • The long-term growth outlook has improved by $100 million, indicating the business environment is better than last year.
  • AMBA’s focus on low-power edge applications and strong value propositions position the company for increased demand.

The author starts his analytic review with the following:

Summary Following my coverage of Ambarella Inc. (NASDAQ:AMBA), I recommended a hold rating as I was concerned about the headwinds in the automotive markets and the setbacks that AMBA has faced in the surveillance segment. This post is to provide an update on my thoughts on the business and stock. I am revising my hold rating to a buy rating as I am now focused on FY26 performance, where I expect AMBA to see a strong acceleration in growth. Management comments on inventories and 4Q23 guidance hint that the worst has passed. The long-term growth outlook (based on management disclosures on pipelines) has also modestly increased by $100 million, suggesting the current operating environment has improved vs. last year.

The author declares an interesting position, and the number of his followers is 791 and it grows, but not that weighty compared to other authors.
Jay Capital has 296 works published.
The contributor of experts community since 2022

One more noteworthy article is written by Tech Stock Pros under the title

“Ambarella: Initiating With Hold – Longer Recovery Path Post-Correction”

on December 19 (2023) and has 0 likes. The expert reflects Neutral trend of the market.

Нis theses make you think about whether to add AMBA stocks to your investment portfolio or not, and helps to work out your own Ambarella stock selling strategies:

  • We initiate our coverage of Ambarella with a hold.
  • 3Q24 results and outlook lead us to believe AMBA is seeing a slow recovery post-customer inventory correction and facing muted demand in IoT and auto markets.
  • We think the weakness has been priced into the stock for the most part but don’t see a near-term catalyst driving substantial outperformance in the near term, underperforming the S&P 500 by 34%.
  • Additionally, we believe AMBA is expensive at current levels, trading at 10.0x EV/C2023 sales versus the peer group average of 6.5x.
  • We expect the stock to be an in-line performer to a slight outperformer in the near term.

Tech Stock Pros starts analysis with such words:

We’re initiating Ambarella, Inc. (NASDAQ:AMBA) with a hold. AMBA is a semiconductor company that produces products used for human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), electronic mirrors, and monitoring for drivers/cabins. This quarter, management reported sales down 19% QoQ and 39% Y/Y to $50.6M, relatively in line with consensus expectations at $50M, and is now guiding for a slight QoQ growth to $50-53M, representing a 36-40% Y/Y decline and slightly ahead of consensus of $50.4M. We see a longer recovery story for the stock due to muted demand in both IoT and auto end markets. We think the auto and industrial correction will be the last leg of the correction in the semi space, aside from the AI correction next year that we expect to impact Nvidia (NVDA) primarily. Our neutral rating is based on our belief that the stock will only slightly outperform expectations for its January quarter by better-than-expected IoT growth while auto sales remain flat sequentially. We think investor money can be better placed elsewhere in 1H24. We see other semi stocks better positioned to outperform AMBA in the near term, including Semtech (SMTC). We think it’s still too early to jump into AMBA as 1. We expect sales to continue to be weighed down by inventory corrections and macro weakness, and 2. We don’t see any near-term catalyst offsetting the weakness.

The opinion of the author can be considered quite authoritative.
The number of 8330 followers confirms this.
Tech Stock Pros is the contributor of experts community since 2020. Has already published at least 399 articles.

Another analysis presented by Stone Fox Capital came out on November 28 (2023). Obviously, coupled with the newer reviews, this forecasting could be useful to find out the best trading strategy for AMBA stocks. It sounds like

“Ambarella: No Footing Heading Into FQ3 Results”

Article has got 0 likes at the moment and forecasting Bullish trend of the market.

Summarizing the information presented in the review concerning the Ambarella, Inc., the expert says the following:

  • Ambarella’s revenues are back to cyclical lows despite promising orders in the automotive sector and new edge AI chips.
  • The company’s CFO planning to retire at the end of the fiscal year, on Jan. 31, 2024, isn’t a promising sign for a sales turnaround.
  • The stock has a pattern of running from $50 to $100 and promising auto sales in FY25 could provide the catalyst.

And here, what comes first:

Ambarella (NASDAQ:AMBA) has always been a conundrum with promising image technology, but a business model that never stacks growth on past years. The company continues to have promising orders in the automotive sector along with new edge AI chips, but actual revenues are again back to cyclical lows. My investment thesis is more bullish after the massive dip in the stock back into the mid-$50s heading into FQ3 results.

This author is very popular among the auditory. He has 44931 followers.

Stone Fox Capital is the contributor of experts community since 2008 and has at least 4873 analytic reviews published.

The Share Price of Ambarella, Inc. (AMBA) for now

What analysts predict: $72.33
52-week high/low: $95.74 / $43.59

50/200 Day Moving Average: $57.4 / $63.99

The average stock price over the previous 50/200 days. For Ambarella stocks, the 50-day moving average is the resistance level for now. For AMBA stocks, the 200-day moving average is the resistance level today.

See the Detailed Predictions for AMBA stock with charts and tables

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