Ambarella Inc. is scheduled to release its second-quarter fiscal 2027 earnings after the market close on Thursday, with investors focused on whether the edge AI semiconductor company can sustain revenue growth driven by its latest vision systems-on-chip (SoCs).
Analysts project the Santa Clara, California-based firm to report earnings of $0.171 per share, a 14% increase from the same period last year and a 55% sequential rise from the $0.11 reported in the prior quarter. Revenue is forecast at $107.76 million, up nearly 13% year-over-year and 7.3% from the $100.4 million recorded in May. These estimates have remained unchanged over the past 60 days.
The company’s forward price-to-earnings ratio stands at 83.9, reflecting elevated market expectations despite a trailing diluted loss of $1.62 per share over the past 12 months. Ambarella has posted 28% revenue growth in the last year, though its valuation remains a point of scrutiny given the broader semiconductor sector’s volatility.
Ambarella’s edge AI portfolio includes 12 available SoCs, with its latest CV7 series built on Samsung’s 4nm process and the existing CV75/CV72 family (Gen 3 SoCs) on a 5nm node. The company also offers a unified software stack and has introduced an agentic interface around its Cooper SDK, aiming to reduce developer onboarding time from months to days or weeks. Management has cited plans to demonstrate tangible proof points within the next 6 to 8 months.
Analyst coverage remains balanced, with 14 analysts evenly split between buy and hold ratings and no sell recommendations. The mean price target is $95, implying a 41.5% upside from the $67.14 closing price. Rosenblatt maintains a buy rating with a $120 target, while Stifel’s target is set at $106.
The company’s recent performance has included a 10% earnings-per-share beat in the prior quarter, though its stock has been sensitive to strategic developments. Reports of potential acquisition discussions with NXP Semiconductors, disclosed by the Financial Times in late July, briefly lifted Ambarella’s shares by nearly 20% at the time.
