Shares of Ambarella Inc. received a boost from analysts at Rosenblatt, Stifel and Northland ahead of the company’s fiscal second-quarter earnings release scheduled for September 3. Rosenblatt maintained a buy rating and raised its price target to $120 from a prior level, citing expectations for revenue growth and margin expansion driven by demand for edge AI chips.
Stifel also reiterated a buy rating with a $106 target, while Northland maintained an outperform rating with a $101 target. Ambarella’s market capitalization stands at approximately $3.1 billion, with trailing twelve-month revenue growth of 28%.
Analysts expect fiscal Q2 revenue of $108 million, representing a 7.6% sequential increase and a 13.1% year-over-year rise. Options-implied volatility suggests a potential 14% stock move following the earnings release. Rosenblatt anticipates Ambarella will exceed estimates and raise guidance, aligning with a pattern where the company has beaten option-implied moves in five of its last eight earnings reports.
Ambarella’s edge AI system-on-chip (SoC) designs, including 5nm, 4nm and 2nm nodes, are entering higher-volume production, supporting average selling price growth and customer expansion. Its 5nm SoCs, secured over the past two years, are now scaling, while the 4nm and 2nm designs lead in performance-per-watt efficiency. The company’s CV architecture incorporates embedded SRAM, reducing reliance on external DRAM.
At Rosenblatt’s 6th Annual Age of AI Technology Summit, Ambarella’s Chief Customer Growth Officer Muneyb Minhazuddin highlighted that edge AI adoption will diversify across fragmented verticals rather than concentrate in a single application. The company also introduced an agentic interface to its Cooper SDK, enabling developers to port existing applications and models to its chips without rewriting APIs, cutting integration time from months to days or weeks for early independent software vendor partners.
Northland noted that rising AI infrastructure costs and data privacy concerns are pushing enterprises to shift AI workloads to on-premises environments, a trend that benefits edge AI chip providers like Ambarella. The company has not commented on recent reports suggesting NXP Semiconductor is exploring a potential acquisition, and Rosenblatt expects management to avoid discussing strategic alternatives during the earnings call.
