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Investing.com - Stifel maintained its Buy rating and $80 price target on Ambarella (NASDAQ:AMBA) following meetings with the company’s senior management from June 23-25, 2025. The stock has shown remarkable momentum, gaining 34% in the past week, though according to InvestingPro data, the RSI suggests the stock is currently in overbought territory.
The research firm’s analyst Tore Svanberg reaffirmed the positive outlook for the semiconductor company, which specializes in AI vision processing solutions. The price target represents a valuation of 8.2 times the company’s estimated enterprise value to sales ratio for calendar year 2026. Based on InvestingPro analysis, the stock appears overvalued relative to its Fair Value, with analyst targets ranging from $49.60 to $95.
Stifel’s meetings included discussions with Ambarella’s Co-Founder, President and CEO Fermi Wang, CFO John Young, and VP of Corporate Strategy Louis Gerhardy during a non-deal roadshow earlier this week.
The firm’s maintained rating comes as Ambarella continues to position itself in the growing market for computer vision and artificial intelligence processing chips used in applications ranging from security cameras to automotive systems.
Ambarella stock has attracted investor attention as the company transitions from its earlier focus on video processing to more advanced AI-enabled vision systems that can perform complex tasks like object recognition and scene understanding.
In other recent news, Ambarella is exploring strategic options, including a potential sale, according to a Bloomberg report. The company has engaged bankers and reached out to potential buyers, though no specific suitors or deal terms have been disclosed. Meanwhile, Ambarella reported strong first-quarter fiscal year 2026 results with revenue of $86 million and non-GAAP earnings per share of $0.07, surpassing consensus estimates. The company’s second-quarter revenue guidance is set at a midpoint of $90 million, indicating significant growth.
Stifel analysts reiterated their Buy rating and $80 price target on Ambarella, highlighting the company’s modest first-quarter beat and robust demand for edge AI processors. Oppenheimer maintained a Perform rating despite the raised fiscal year 2026 outlook, citing valuation concerns. KeyBanc also maintained a Sector Weight rating, acknowledging Ambarella’s strategic shift towards edge AI infrastructure.
Needham adjusted its price target from $110 to $90 while maintaining a Buy rating, reflecting a more conservative approach but continued confidence in Ambarella’s market potential. The company has revised its revenue growth projections for fiscal year 2026 to 19%-25% year-over-year, highlighting its strategic focus on expanding its market presence beyond security cameras into automotive and consumer markets.
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