Ambarella (NASDAQ:AMBA) Sees Strong Trading Volume - Should You Buy?

Key Points

• Ambarella shares rose 7.5% and saw heavier trading volume, with the stock last trading around $89.59. The move came as investors reacted to recent positive news flow around the company.
• Analysts highlighted Ambarella as a potential “physical AI” pure play, citing its edge AI chip leadership in robotics and machine vision. Reports also pointed to an about $800 million Hanwha-related deal as a sign of growing confidence in the company’s technology.
• Ambarella’s latest earnings supported the bullish case, with revenue up 16.9% year over year to $100.4 million and EPS of $0.11, in line with expectations. Even so, analysts currently view the stock as a Moderate Buy with an average price target of $100.50.

Ambarella, Inc. (NASDAQ:AMBA - Get Free Report) saw an uptick in trading volume on Wednesday . 1,046,440 shares traded hands during trading, a decline of 8% from the previous session's volume of 1,131,957 shares.The stock last traded at $89.5930 and had previously closed at $85.80.

Key Stories Impacting Ambarella

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Rosenblatt reportedly named Ambarella a top pick for the second half of 2026, calling it a strong “physical AI” pure play thanks to its edge AI chip leadership and positioning in robotics and machine vision. Article Title
• Positive Sentiment: Several reports highlighted a major Hanwha-related deal worth about $800 million, which investors appear to view as validation of Ambarella’s technology and growth prospects. Article Title
• Positive Sentiment: Ambarella’s last earnings report also supported the bull case: revenue rose 16.9% year over year to $100.4 million and EPS came in at $0.11, matching Wall Street expectations. Article Title
• Neutral Sentiment: A director sold 250 shares under a pre-arranged 10b5-1 plan, which is worth noting but is too small to signal a major change in insider conviction. Article Title

Analysts Set New Price Targets

A number of equities research analysts have commented on AMBA shares. Northland Securities set a $101.00 target price on Ambarella in a research report on Wednesday, June 17th. Summit Insights cut Ambarella from a "buy" rating to a "hold" rating in a report on Friday, May 29th. Stifel Nicolaus set a $106.00 price objective on Ambarella in a research report on Friday, May 29th. Consumer Edge restated a "buy" rating on shares of Ambarella in a report on Friday, May 22nd. Finally, Bank of America upped their target price on shares of Ambarella from $72.00 to $96.00 and gave the company a "neutral" rating in a research report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $100.50.

Ambarella Stock Up 7.5%

The firm has a 50-day moving average price of $72.71 and a 200 day moving average price of $66.38. The firm has a market capitalization of $4.05 billion, a PE ratio of -57.51 and a beta of 2.15.

Ambarella (NASDAQ:AMBA - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.11. Ambarella had a negative return on equity of 10.94% and a negative net margin of 17.18%.The firm had revenue of $100.36 million for the quarter, compared to the consensus estimate of $100.12 million. During the same quarter in the previous year, the business earned $0.07 EPS. The company's quarterly revenue was up 16.9% compared to the same quarter last year. Equities research analysts expect that Ambarella, Inc. will post -1.13 earnings per share for the current year.

Insider Activity at Ambarella

In related news, insider Chan W. Lee sold 2,951 shares of Ambarella stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total value of $200,284.37. Following the completion of the transaction, the insider owned 157,098 shares in the company, valued at approximately $10,662,241.26. The trade was a 1.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Chi-Hong Ju sold 2,017 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 transaction of $136,893.79. Following the sale, the vice president directly owned 165,924 shares in the company, valued at approximately $11,261,261.88. The trade was a 1.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 61,182 shares of company stock valued at $4,889,103. 4.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ambarella

Institutional investors have recently modified their holdings of the business. Essential Partners LLC boosted its holdings in Ambarella by 90.1% in the first quarter. Essential Partners LLC now owns 481 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 228 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 326 shares during the period. Cassaday & Co Wealth Management LLC purchased a new stake in Ambarella during the 1st quarter worth about $30,000. Advisory Services Network LLC acquired a new stake in Ambarella in the 3rd quarter valued at about $33,000. Finally, Steward Partners Investment Advisory LLC raised its position in Ambarella by 162.5% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company's stock valued at $37,000 after purchasing an additional 325 shares in the last quarter. Institutional investors and hedge funds own 82.09% of the company's stock.

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.

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