AMBARELLA INC (AMBA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AMBARELLA INC Do?
Ambarella, Inc. develops semiconductor solutions for video that enable high-definition (HD) and ultra HD compression, image processing, and deep neural network processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; and professional and home internet protocol security camera; robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California. AMBARELLA INC (AMBA) is classified as a mid-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Feng M. Wang and employs approximately 900 people, headquartered in SANTA CLARA, California. With a market capitalization of $2.2B, AMBA is one of the notable companies in the Technology sector.
AMBARELLA INC (AMBA) Stock Rating — Reduce (April 2026)
As of April 2026, AMBARELLA INC receives a Reduce rating with a composite score of 34.3/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.AMBA ranks #3,753 out of 4,446 stocks in our coverage universe. Within the Technology sector, AMBARELLA INC ranks #447 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AMBA Stock Price and 52-Week Range
AMBARELLA INC (AMBA) currently trades at $54.40. The stock gained $1.16 (2.2%) in the most recent trading session. The 52-week high for AMBA is $96.69, which means the stock is currently trading -43.7% from its annual peak. The 52-week low is $38.86, putting the stock 40.0% above its annual trough. Recent trading volume was 22K shares, suggesting relatively thin trading activity.
Is AMBA Overvalued or Undervalued? — Valuation Analysis
AMBARELLA INC (AMBA) carries a value factor score of 29/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 3.75x, versus the sector average of 3.16x. The price-to-sales ratio is 6.81x, compared to 1.06x for the average Technology stock.
At current multiples, AMBARELLA INC trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
AMBARELLA INC Profitability — ROE, Margins, and Quality Score
AMBARELLA INC (AMBA) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -17.4%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -12.9% versus the sector average of -1.0%.
On a margin basis, AMBARELLA INC reports gross margins of 60.1%, compared to 50.9% for the sector. The operating margin is -35.2% (sector: -0.5%). Net profit margin stands at -33.3%, versus -1.5% for the average Technology stock. Revenue growth is running at 75.3% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
AMBA Debt, Balance Sheet, and Financial Health
AMBARELLA INC has a debt-to-equity ratio of 34.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.31x, indicating strong short-term liquidity. Total debt on the balance sheet is $12M. Cash and equivalents stand at $174M.
AMBA has a beta of 2.17, meaning it is more volatile than the broader market — a $10,000 investment in AMBA would be expected to move 117.0% more than the S&P 500 on any given day. The stability factor score for AMBARELLA INC is 35/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
AMBARELLA INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, AMBARELLA INC reported revenue of $328M and earnings per share (EPS) of $-1.78. Net income for the quarter was $-103M. Gross margin was 60.1%. Operating income came in at $-110M.
In FY 2026, AMBARELLA INC reported revenue of $391M and earnings per share (EPS) of $-1.78. Net income for the quarter was $-76M. Gross margin was 59.2%. Revenue grew 37.2% year-over-year compared to FY 2025. Operating income came in at $-83M.
In Q2 2026, AMBARELLA INC reported revenue of $96M and earnings per share (EPS) of $-0.47. Net income for the quarter was $-20M. Gross margin was 58.9%. Revenue grew 49.9% year-over-year compared to Q2 2025. Operating income came in at $-22M.
In Q1 2026, AMBARELLA INC reported revenue of $86M and earnings per share (EPS) of $-0.58. Net income for the quarter was $-24M. Gross margin was 60.0%. Revenue grew 57.6% year-over-year compared to Q1 2025. Operating income came in at $-26M.
Over the past 8 quarters, AMBARELLA INC has demonstrated a growth trajectory, with revenue expanding from $54M to $328M. Investors analyzing AMBA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AMBA Dividend Yield and Income Analysis
AMBARELLA INC (AMBA) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
AMBA Momentum and Technical Analysis Profile
AMBARELLA INC (AMBA) has a momentum factor score of 37/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
AMBA vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, AMBARELLA INC (AMBA) ranks #447 out of 584 stocks based on the Blank Capital composite score. This places AMBA in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing AMBA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AMBA vs S&P 500 (SPY) comparison to assess how AMBARELLA INC stacks up against the broader market across all factor dimensions.
AMBA Next Earnings Date
No upcoming earnings date has been announced for AMBARELLA INC (AMBA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AMBA? — Investment Thesis Summary
The quantitative profile for AMBARELLA INC suggests caution. The quality score of 36/100 flags below-average profitability. The value score of 29/100 indicates premium valuation. Momentum is weak at 37/100, a headwind for near-term performance. High volatility (stability score 35/100) increases portfolio risk.
In summary, AMBARELLA INC (AMBA) earns a Reduce rating with a composite score of 34.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AMBA stock.
Related Resources for AMBA Investors
Explore more research and tools: AMBA vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare AMBA head-to-head with peers: AMBA vs IHS, AMBA vs VRSN, AMBA vs ESE.