Ambarella, Inc. (AMBA) Stock Analysis
Momentum Cont setup · Catalyst-Driven edge
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $76.25: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Elevated put/call ratio: 2.94; Below-average business quality.
Ambarella designs AI SoCs for edge and physical AI applications including security cameras, automotive systems, and robotics, with CVflow architecture targeting transformer-based AI inference. Revenue flows primarily through WT Microelectronics, the company's non-exclusive Asia... Read more
Sell if holding. Engine safety override at $76.25: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Elevated put/call ratio: 2.94; Below-average business quality. Chart setup: Trend continuation, RSI 69, MACD bullish. Score 5.2/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerWT Microelectronics70%10-K Item 1A: 'the customer representing 10% or more of our revenue was WT Microelectronics Co., Ltd., or WT, which serves as our non-exclusive sales representative and fulfillment partner in Asia other than Japan, accounted for approximately 70% of total revenue'
Material Events(8-K, last 90d)
- 2026-02-27Item 5.02LOWCompensation Committee approved FY2027 Annual Bonus Plan on February 24, 2026, with aggregate target pool ~28% larger than FY2026. CEO Feng-Ming Wang target is 100% of salary. Routine compensatory arrangement.SEC filing →
- 2026-02-26Item 5.02LOWGregory M. Bryant appointed to the Board and Compensation Committee effective February 23, 2026. Former EVP at Analog Devices. Routine board appointment; no officer departures.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers·1 ceiling hit
Volatile — 5.5% daily ATR makes tight stops impractical. Position-size conservatively.static
Unprofitable operations — net margin -19.4%. Quality floor flags this regardless of sector context.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $76.25: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10. Specifically: Elevated put/call ratio: 2.94; Below-average business quality. Chart setup: Trend continuation, RSI 69, MACD bullish. Prior stop was $71.32. Score 5.2/10, moderate confidence.
Take-profit target: $81.70 (+6.5% upside). Prior stop was $71.32. Stop-loss: $71.32.
Concentration risk — Customer: WT Microelectronics (70.0%); Target reached (-0.3% upside); Quality below floor (3.8 < 4.0).
Ambarella, Inc. trades at a P/E of N/A (forward 72.6). TrendMatrix value score: 4.7/10. Verdict: Sell.
21 analysts cover AMBA with a consensus score of 3.9/5. Average price target: $88.
What does Ambarella, Inc. do?Ambarella designs AI SoCs for edge and physical AI applications including security cameras, automotive systems, and...
Ambarella designs AI SoCs for edge and physical AI applications including security cameras, automotive systems, and robotics, with CVflow architecture targeting transformer-based AI inference. Revenue flows primarily through WT Microelectronics, the company's non-exclusive Asia distributor that represented ~70% of total fiscal 2026 revenue.