Ambarella, Inc. (AMBA) Stock Analysis
Recovery setup · Catalyst-Driven edge
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $66.27: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
Ambarella develops low-power AI-enabled SoC semiconductors for edge AI applications including automotive cameras, security cameras, and robotics, with CV7 (edge AI), CV3 (autonomous driving), and N1 (LLM inference) families on 4-5nm process technology. In fiscal year 2026,... Read more
Sell if holding. Engine safety override at $66.27: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 84. Score 5.3/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). 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...accounted for approximately 70% of total revenue.'
Material Events(8-K, last 90d)
- 2026-02-27Item 5.02LOWOn February 24, 2026, the Compensation Committee approved the FY2027 Annual Bonus Plan. CEO Feng-Ming Wang bonus target is 100% of annual base salary; other executives 40-75%. Aggregate target pool is ~28% larger than FY2026. Routine compensatory arrangement; no departure or appointment.SEC filing →
- 2026-02-26Item 5.02LOWOn February 23, 2026, the Board appointed Gregory M. Bryant as a director and Compensation Committee member. Bryant most recently served as President, Global Business Units at Analog Devices Inc. (March 2022-March 2025). No arrangements or related party transactions reportable.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Unprofitable operations — net margin -19.4%. Quality floor flags this regardless of sector context.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $66.27: Quality below floor (3.7 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 84. Prior stop was $61.30. Score 5.3/10, moderate confidence.
Take-profit target: $76.49 (+16.1% upside). Prior stop was $61.30. Stop-loss: $61.30.
Concentration risk — Customer: WT Microelectronics (70.0%); Quality below floor (3.7 < 4.0).
Ambarella, Inc. trades at a P/E of N/A (forward 60.7). TrendMatrix value score: 5.9/10. Verdict: Sell.
21 analysts cover AMBA with a consensus score of 3.9/5. Average price target: $88.
What does Ambarella, Inc. do?Ambarella develops low-power AI-enabled SoC semiconductors for edge AI applications including automotive cameras,...
Ambarella develops low-power AI-enabled SoC semiconductors for edge AI applications including automotive cameras, security cameras, and robotics, with CV7 (edge AI), CV3 (autonomous driving), and N1 (LLM inference) families on 4-5nm process technology. In fiscal year 2026, distributor WT Microelectronics represented approximately 70% of total revenue as the primary Asia fulfillment partner.