Ambarella (NASDAQ:AMBA) Trading Up 9.2% – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA) shares were up 9.2% during mid-day trading on Tuesday . The stock traded as high as $70.20 and last traded at $73.18. Approximately 210,544 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 1,078,587 shares. The stock had previously closed at $67.01.

Key Ambarella News

Here are the key news stories impacting Ambarella this week:

• Positive Sentiment: Rosenblatt named Ambarella a top pick for the second half of 2026, citing its leadership in physical AI and edge AI chips, which is boosting investor optimism. Rosenblatt Names Ambarella a Top Pick for Second Half of 2026
• Positive Sentiment: Analysts are framing Ambarella as a “pure play” on physical AI, which could support a higher valuation if investors continue to favor AI infrastructure and robotics exposure. Looking for a ‘Physical AI Pure Play’? Ambarella Stock Is the One, Says Rosenblatt
• Neutral Sentiment: Ambarella shareholders approved the company’s directors, auditor, and equity plan at the annual meeting, removing governance uncertainty but likely having limited immediate impact on the stock. Ambarella shareholders affirm directors, auditor and equity plan
• Negative Sentiment: Director Christopher Paisley sold a small number of shares under a pre-arranged trading plan, which is usually viewed as a minor negative signal even though the sale was limited and routine. Ambarella (NASDAQ:AMBA) Director Sells $15,502.50 in Stock

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Bank of America raised their price objective on shares of Ambarella from $72.00 to $96.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. Stifel Nicolaus set a $106.00 target price on shares of Ambarella in a research note on Friday, May 29th. Susquehanna increased their price target on shares of Ambarella from $80.00 to $110.00 and gave the stock a “positive” rating in a research report on Friday, May 29th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Ambarella in a research note on Friday, June 26th. Finally, Consumer Edge reissued a “buy” rating on shares of Ambarella in a report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $100.50.

Ambarella Trading Up 3.0%

The company has a 50-day moving average of $73.29 and a 200-day moving average of $66.44. The firm has a market capitalization of $3.88 billion, a price-to-earnings ratio of -54.87 and a beta of 2.11.

Ambarella (NASDAQ:AMBA) last released its quarterly earnings data on Thursday, May 28th. The semiconductor company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11. Ambarella had a negative net margin of 17.18% and a negative return on equity of 10.94%. The firm had revenue of $100.36 million during the quarter, compared to the consensus estimate of $100.12 million. During the same quarter in the previous year, the company posted $0.07 earnings per share. The firm’s revenue was up 16.9% on a year-over-year basis. On average, research analysts forecast that Ambarella, Inc. will post -1.13 earnings per share for the current year.

Insider Buying and Selling

In other Ambarella news, CEO Feng-Ming Wang sold 6,204 shares of Ambarella stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $421,065.48. Following the completion of the sale, the chief executive officer owned 799,857 shares of the company’s stock, valued at $54,286,294.59. This trade represents a 0.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Chi-Hong Ju sold 2,017 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $67.87, for a total transaction of $136,893.79. Following the transaction, the vice president owned 165,924 shares in the company, valued at approximately $11,261,261.88. This represents a 1.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 61,182 shares of company stock worth $4,889,103. Insiders own 4.50% of the company’s stock.

Institutional Trading of Ambarella

Institutional investors have recently bought and sold shares of the company. Western Wealth Management LLC purchased a new position in Ambarella in the first quarter valued at about $129,000. Pacer Advisors Inc. raised its stake in shares of Ambarella by 26.7% during the 1st quarter. Pacer Advisors Inc. now owns 5,360 shares of the semiconductor company’s stock worth $276,000 after purchasing an additional 1,129 shares in the last quarter. Essential Partners LLC lifted its holdings in shares of Ambarella by 90.1% during the 1st quarter. Essential Partners LLC now owns 481 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 228 shares during the last quarter. Cim Investment Management Inc. lifted its holdings in shares of Ambarella by 43.2% during the 1st quarter. Cim Investment Management Inc. now owns 5,998 shares of the semiconductor company’s stock valued at $309,000 after buying an additional 1,810 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in shares of Ambarella by 7.8% in the 1st quarter. Bank of America Corp DE now owns 481,758 shares of the semiconductor company’s stock valued at $24,798,000 after buying an additional 34,843 shares in the last quarter. Institutional investors and hedge funds own 82.09% of the company’s stock.

About Ambarella

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.