Ambarella (AMBA) Gets Bullish Ratings from Analysts

Ambarella, Inc. (NASDAQ:AMBA) is one of the 14 Small Publicly Traded Semiconductor Companies to Invest in Now. On August 29, Needham increased its price target for Ambarella, Inc. (NASDAQ:AMBA) from $90 to $100 and maintained a Buy rating.

This decision came after Ambarella, Inc. (NASDAQ:AMBA) reported strong results for the second quarter of fiscal year 2026. The company also provided Q3 guidance that surpassed market expectations.

Needham’s analysis suggests that IoT will continue to be the primary growth driver for Ambarella, Inc. (NASDAQ:AMBA) until the company wins a major automotive design, which is expected to happen around 2027-2028.

On August 29, Morgan Stanley also increased its price target for Ambarella, Inc. (NASDAQ:AMBA) from $80 to $96 while keeping an Overweight rating. The firm believes that while autonomous auto enthusiasm is on hold for now, near-term growth is being driven by edge-based AI applications in areas like portable video, drones, and enterprise infrastructure.

Overall, analysts are bullish on Ambarella, Inc. (NASDAQ:AMBA). As of September 19, the 12-month median price target of $96 set by analysts indicates a potential upside of 15.76% from the current stock price.

Ambarella, Inc. (NASDAQ:AMBA) is an American fabless semiconductor design company specializing in low-power and high-resolution video compression, image processing, and deep neural network processors. The company’s products are used in areas like video security, advanced driver assistance (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and other robotics applications.

While we acknowledge the potential of AMBA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.