Northland Securities Forecasts Ambarella Q3 Earnings

Key Points

• Northland Securities raised its Ambarella EPS forecast for Q3 2027 to a loss of $0.15 per share from $0.20, while projecting losses of $1.08 for FY2027 and $0.67 for FY2028.
• Ambarella recently beat quarterly expectations, reporting $0.18 EPS versus a $0.17 consensus and revenue of $108.12 million, up 13.2% year over year.
• Analyst sentiment remains mixed: Ambarella has a consensus “Hold” rating and an average price target of $89.56, while its shares opened at $68.80 and have recently traded up 8.4%.

Ambarella, Inc. (NASDAQ:AMBA - Free Report) - Investment analysts at Northland Securities upped their Q3 2027 earnings per share estimates for shares of Ambarella in a research report issued to clients and investors on Friday, September 4th. Northland Securities analyst G. Richard now expects that the semiconductor company will post earnings of ($0.15) per share for the quarter, up from their prior forecast of ($0.20). The consensus estimate for Ambarella's current full-year earnings is ($1.13) per share. Northland Securities also issued estimates for Ambarella's Q4 2027 earnings at ($0.28) EPS, FY2027 earnings at ($1.08) EPS, Q1 2028 earnings at ($0.32) EPS, Q4 2028 earnings at ($0.14) EPS and FY2028 earnings at ($0.67) EPS.

A number of other analysts have also commented on AMBA. Craig Hallum lowered shares of Ambarella from a "buy" rating to a "hold" rating and set a $70.00 price objective for the company. in a research note on Friday, September 4th. Rosenblatt Securities reissued a "buy" rating and issued a $120.00 target price on shares of Ambarella in a research report on Monday, August 31st. Weiss Ratings upgraded shares of Ambarella from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, July 10th. Bank of America decreased their price objective on shares of Ambarella from $96.00 to $70.00 and set a "neutral" rating for the company in a research note on Friday, September 4th. Finally, Summit Insights downgraded shares of Ambarella from a "buy" rating to a "hold" rating in a research note on Friday, May 29th. Five research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Ambarella presently has a consensus rating of "Hold" and an average target price of $89.56.

Ambarella Trading Up 8.4%

Shares of AMBA opened at $68.80 on Thursday. The business's 50-day moving average price is $73.41 and its 200 day moving average price is $68.19. The stock has a market capitalization of $3.04 billion, a P/E ratio of -53.33 and a beta of 2.09. Ambarella has a 1-year low of $48.30 and a 1-year high of $96.69.

Ambarella (NASDAQ:AMBA - Get Free Report) last announced its earnings results on Thursday, September 3rd. The semiconductor company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.17 by $0.01. Ambarella had a negative return on equity of 10.03% and a negative net margin of 13.48%.The business had revenue of $108.12 million during the quarter, compared to the consensus estimate of $107.76 million. During the same period in the prior year, the business posted $0.15 earnings per share. Ambarella's revenue was up 13.2% compared to the same quarter last year.

Institutional Investors Weigh In On Ambarella

A number of institutional investors have recently modified their holdings of the stock. Financial Management Professionals Inc. purchased a new position in shares of Ambarella during the 2nd quarter valued at $32,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Ambarella during the second quarter worth $34,000. Advisory Services Network LLC purchased a new stake in shares of Ambarella during the third quarter worth $33,000. EverSource Wealth Advisors LLC boosted its position in Ambarella by 362.2% during the second quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company's stock valued at $27,000 after purchasing an additional 326 shares during the last quarter. Finally, Essential Partners LLC boosted its position in Ambarella by 90.1% during 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 last quarter. Institutional investors and hedge funds own 82.09% of the company's stock.

Insider Buying and Selling

In related news, CFO John Young sold 5,033 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.54, for a total transaction of $339,928.82. Following the transaction, the chief financial officer directly owned 112,590 shares of the company's stock, valued at approximately $7,604,328.60. The trade was a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Chan W. Lee sold 2,951 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction 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. This represents a 1.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 58,519 shares of company stock worth $4,595,475 over the last ninety days. 4.50% of the stock is currently owned by corporate insiders.

Ambarella News Summary

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Ambarella’s Q2 2027 earnings-call commentary highlighted record edge-AI revenue and a projected $22.9 billion serviceable available market, reinforcing expectations for long-term demand for the company’s AI-enabled semiconductor solutions. Ambarella Q2 2027 Earnings Call Transcript
• Positive Sentiment: Northland Securities raised its EPS forecasts for Q3 2027, FY2027, Q1 2028, Q4 2028 and FY2028. The largest improvement was its FY2028 estimate, which moved to a loss of $0.67 per share from a loss of $0.78, suggesting analysts expect Ambarella’s profitability trajectory to improve over time.
• Positive Sentiment: Management’s participation in Citi’s 2026 Global TMT Conference gives investors additional visibility into Ambarella’s strategy and AI-related growth opportunities. Ambarella Presents at Citi’s 2026 Global TMT Conference
• Neutral Sentiment: Despite the upward revisions, Northland still forecasts losses for FY2027 and FY2028, at $1.08 and $0.67 per share, respectively. The company’s current-year consensus estimate remains a loss of $1.13 per share, so investors are paying for anticipated future growth rather than current earnings.
• Negative Sentiment: Northland modestly reduced its Q4 2027 EPS forecast to a loss of $0.28 from $0.26, indicating that the near-term earnings path remains uneven and could temper enthusiasm if operating improvements take longer than expected.

About Ambarella

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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