Ambarella, Inc. (AMBA) Stock Analysis
Recovery setup · Catalyst-Driven edge
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $68.13: 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; 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 $68.13: 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; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 86. Score 5.3/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Fails on 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
2 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
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $68.13: 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; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 86. Prior stop was $63.31. Score 5.3/10, moderate confidence.
Take-profit target: $76.49 (+12.4% upside). Prior stop was $63.31. Stop-loss: $63.31.
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: 5.6/10. 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.