Ambarella (NASDAQ:AMBA) Shares Gap Down – What’s Next?

Ambarella, Inc. (NASDAQ:AMBA)’s share price gapped down before the market opened on Friday . The stock had previously closed at $70.90, but opened at $61.05. Ambarella shares last traded at $59.2720, with a volume of 1,475,693 shares.

More Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Q4 results beat Street expectations: revenue $100.9M (+20.1% YoY) and adjusted EPS $0.13 vs. consensus ~$0.10, showing continued Edge‑AI demand. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Fiscal 2026 revenue rose ~37% year‑over‑year to ~$390.7M, indicating strong multi‑quarter top‑line momentum from Edge AI products. Ambarella Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Operating cash generation strengthened (cash from ops up, cash & equivalents ~ $191M) and capex declined, providing a cash cushion to fund product transitions. Ambarella Inc. stock falls on Q4 2026 Earnings (QuiverQuant)
• Positive Sentiment: Management targets FY2027 revenue growth of ~10–15% as Edge AI adoption continues, giving investors a multi‑year growth framework (though slower than FY2026). Ambarella targets 10%-15% revenue growth in fiscal 2027 (MSN)
• Neutral Sentiment: Q1 FY2027 revenue guidance of $97M–$103M was roughly in line with consensus, which moderates one-off downside risk but also signals a seasonal/near‑term slowdown. Ambarella Guides for Revenue Growth to Slow This Fiscal Year (MarketWatch)
• Neutral Sentiment: Board actions: a new FY2027 executive bonus plan was approved and a veteran semiconductor executive was appointed to the board — governance moves investors will parse for incentives and strategic oversight. Ambarella Adopts New FY2027 Executive Bonus Plan (TipRanks) Ambarella Adds Veteran Director (TipRanks)
• Negative Sentiment: Market reaction was negative: shares fell after the report as investors focused on the guidance for slower growth versus the strong FY2026 comps. What’s Going On With Ambarella Stock Friday? (Benzinga)
• Negative Sentiment: The company still reported operating losses and a net loss in the quarter (operating result and diluted loss per share flagged by some summaries), which keeps profitability recovery on investors’ watch lists. Ambarella Inc. stock falls on Q4 2026 Earnings (QuiverQuant)
• Negative Sentiment: Notable insider selling over recent months was flagged by data providers, which may weigh on sentiment despite executive and board changes. Insider activity and institutional moves (QuiverQuant)

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Rosenblatt Securities lifted their target price on shares of Ambarella from $100.00 to $115.00 and gave the company a “buy” rating in a report on Wednesday, November 26th. Consumer Edge reaffirmed a “buy” rating on shares of Ambarella in a report on Tuesday. Roth Mkm restated a “neutral” rating on shares of Ambarella in a research report on Wednesday, November 26th. Bank of America raised their price objective on Ambarella from $90.00 to $92.00 and gave the company a “neutral” rating in a report on Wednesday, November 26th. Finally, Summit Insights upgraded Ambarella from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, November 25th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Ambarella currently has an average rating of “Moderate Buy” and an average target price of $96.00.

Ambarella Price Performance

The stock has a 50 day moving average price of $67.92 and a 200-day moving average price of $76.03. The stock has a market capitalization of $2.60 billion, a price-to-earnings ratio of -33.90 and a beta of 1.97.

Ambarella (NASDAQ:AMBA) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.10 by $0.03. Ambarella had a negative return on equity of 12.24% and a negative net margin of 19.42%.The firm had revenue of $100.87 million during the quarter, compared to the consensus estimate of $100.17 million. During the same period in the prior year, the company earned $0.11 EPS. The firm’s revenue was up 20.1% compared to the same quarter last year. As a group, research analysts forecast that Ambarella, Inc. will post -2.81 earnings per share for the current year.

Insider Transactions at Ambarella

In related news, CFO John Alexander Young sold 3,791 shares of the company’s stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $72.96, for a total transaction of $276,591.36. Following the completion of the sale, the chief financial officer owned 102,738 shares of the company’s stock, valued at approximately $7,495,764.48. This represents a 3.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Feng-Ming Wang sold 4,950 shares of the stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $71.82, for a total transaction of $355,509.00. Following the completion of the sale, the chief executive officer owned 783,979 shares of the company’s stock, valued at approximately $56,305,371.78. The trade was a 0.63% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 27,685 shares of company stock valued at $2,016,598. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Ambarella

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC raised its holdings in shares of Ambarella by 362.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 416 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 326 shares during the period. Total Investment Management Inc. purchased a new stake in shares of Ambarella in the second quarter valued at about $30,000. Advisory Services Network LLC acquired a new stake in Ambarella during the third quarter worth about $33,000. Steward Partners Investment Advisory LLC raised its stake in Ambarella by 162.5% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 525 shares of the semiconductor company’s stock worth $37,000 after purchasing an additional 325 shares during the period. Finally, CoreCap Advisors LLC acquired a new position in Ambarella in the 3rd quarter valued at about $43,000. Institutional investors and hedge funds own 82.09% of the company’s stock.

Ambarella Company Profile

Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella’s platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption.

Ambarella’s product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics.