Domo signs strategic collaboration agreement with AWS for AI solutions
On Thursday, Rosenblatt Securities reaffirmed their Buy rating on Ambarella shares (NASDAQ:AMBA), with a consistent price target of $100.00. Currently trading at $75.81, the stock has shown strong momentum with a 43.6% gain over the past six months, according to InvestingPro data. The firm’s analysts highlighted Ambarella’s impressive performance, marking the fifth straight quarter of sequential growth. The company’s revenue exceeded expectations, surpassing the high end of its guidance by 5%, which significantly contributed to its income model and resulted in a Non-GAAP EPS increase of $0.11. While maintaining a healthy gross profit margin of 60.5%, InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a strong current ratio of 2.84.
Ambarella’s recent earnings report showcased a successful transition to their 5nm CV5 and CV7-based Edge AI products. This transition is a key factor in the company’s ongoing growth trajectory. According to Rosenblatt analysts, Ambarella’s guidance for FY26, which forecasts mid-to-high teens revenue growth, appears conservative. The management cited geopolitical issues as the primary reason for their cautious outlook.
Despite the cautious guidance, Rosenblatt remains optimistic about Ambarella’s prospects. The firm believes that the company is well-positioned in the AI Edge computing market, which they anticipate will be the next significant area of growth within the AI sector. The analysts at Rosenblatt continue to recommend Ambarella shares, underscoring the company’s strong market position and growth potential in the burgeoning field of AI Edge computing. For deeper insights into Ambarella’s AI market positioning and comprehensive financial analysis, access the full InvestingPro Research Report, which includes detailed metrics and expert analysis of this emerging tech player.
In other recent news, Ambarella Inc . reported its Q4 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.11, compared to the forecasted -$0.02. The company also exceeded revenue projections, reporting $84 million against the anticipated $78.03 million, marking a 62.8% increase year-over-year. Ambarella’s fiscal year 2025 revenue reached $284.9 million, a 25.8% rise from the previous year, with a non-GAAP gross margin of 62.7%. The company introduced its N1665H Gen AI SoC, showcasing its commitment to innovation in AI technology. Ambarella remains focused on expanding its presence in the automotive and IoT markets, with plans for mid to high teens revenue growth in fiscal 2026. Analysts from Needham and Company expressed optimism about Ambarella’s growth drivers, including its CV5 and CV7 product families. The company also highlighted potential challenges, such as geopolitical risks in China and policy changes that could impact its future performance.
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