Ambarella, Inc. (AMBA) Stock

Ambarella, Inc. (AMBA) is a Technology stock trading at $72.38 (as of 2026-08-20), with a market capitalization of $3.17B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

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.

Understand Ambarella, Inc.: how it makes money

Ambarella develops semiconductor system-on-a-chip solutions for video and computer vision, including high-definition and ultra HD compression, image processing, and deep neural network processing, and sells these chips to customers whose products include automotive cameras and related in-vehicle imaging.

Ambarella’s profit trajectory depends on converting its multi-year automotive funnel and nearer-term automotive pipeline into actual shipped, computer-vision SoC volume, because it currently shows strong gross margin (58.4%) but a negative operating margin (-19.3%) while sustaining a large engineering organization (82% dedicated to engineering).

Business quality (Weak): Strong gross margin and clear focus on automotive computer-vision deployment are positive indicators, but the operating margin is currently negative, so execution from pipeline to shipments and cost discipline matter.

Bull case

  • Automotive opportunity is sizable in the funnel and pipeline: Six-Year Automotive Funnel is 2.2 USD_B, and Automotive Pipeline is 1.3 USD_B, pointing to a structured multi-year demand build toward automotive deployments.
  • Evidence of deployment through cumulative shipped volume: Edge Artificial Intelligence Processors Shipped (Cumulative) is 30,000,000, and Computer Vision Edge System-On-Chip Units Shipped into Automotive (Cumulative) is 1,000,000.
  • Cost structure at the product level looks robust: Gross margin is 58.4% in the latest reported period, which can provide room to absorb operating costs if scale improves.

Bear case

  • Operating profitability is currently negative: Operating margin is -19.3% in the latest reported period, indicating that current operating expenses outweigh gross profit.
  • Pipeline conversion risk: Automotive Funnel and Automotive Pipeline are forward-looking indicators, so revenue depends on converting these amounts into actual shipments and sustained customer adoption over time.
  • Working capital can be a swing factor: Days of Inventory is 145, which can increase the risk that cash is tied up if product demand or timing shifts.
  • High engineering concentration can pressure expenses: Employees Dedicated to Engineering is 82%, which supports product development but can keep operating costs elevated if shipment volumes do not ramp as expected.
Valuation — source: SEC EDGAR (first-party)
Price$72.38
Market Cap$3.17B
Price / Book5.23
Price / Sales8.12
FCF Yield1.1%
DCF Value (model)$6.01
DCF Upside vs Price-91.7%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$390.70M
Net Margin-19.4%
Revenue Growth (YoY)16.9%
EPS Growth (YoY)-29.3%
FCF Growth (YoY)-389.0%
Financial Health — source: SEC EDGAR
Altman Z-Score9.25 (safe)
Valuation vs Sector & Industry
Sector P/E (Technology)33.9
Industry P/E (Electronic Equipment)39.4
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($388.22M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryElectronic Equipment
CEOFeng-Ming Wang
Employees941
CountryUS
IPO Date2012-10-10

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AMBA earnings history · AMBA institutional & insider holders · AMBA KPIs & operating metrics · AMBA financials · AMBA investor presentations & press releases · AMBA SEC filings · AMBA peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.