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Upturn AI Summary - About
Ambarella Inc(AMBA)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for AMBA
10/30/2026: AMBA (1-star) is currently NOT-A-BUY. Pass it for now.
Ambarella is a specialized semiconductor company focused on developing power-efficient edge AI processors for the automotive, security, and industrial markets. Its main strength lies in its proprietary CVflow architecture, which excels at processing complex visual data locally. The primary investment story centers on the company’s ability to gain design wins in autonomous driving and smart-sensor applications. However, investors face notable risks, including intense competition from larger players and the inherent cyclicality of the semiconductor market. Ambarella may best suit growth-oriented investors with a high risk tolerance who are looking for exposure to the edge AI transition, though they should monitor automotive design wins as the key indicator of success.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Ambarella operates at the intersection of AI and edge computing, offering significant growth potential as adoption scales. |
| Momentum investor | Mixed fit | The stock often exhibits high volatility correlated with AI sector sentiment, making it a conditional fit based on market trends. |
| Value investor | Weak fit | The company's valuation is often premium due to its growth profile and R&D requirements, rather than deep-value metrics. |
| Dividend investor | Weak fit | The company does not pay a dividend, prioritizing capital allocation toward R&D. |
| Low-risk investor | Weak fit | High price volatility and competitive sector pressures make this stock unsuitable for conservative, low-risk portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock's beta reflects the inherent volatility of the growth-oriented semiconductor sector. |
| Valuation risk | Medium / high | Future growth expectations are often baked into the stock price, leaving little room for execution errors. |
| Competition risk (AI competition) | High | Large competitors like NVIDIA have deeper pockets and broader ecosystems that can pressure Ambarella's market share. |
| Business quality | Medium | The company has strong technical expertise but faces challenges in scaling revenue consistently against much larger incumbents. |
| Dividend income | Low / none | There is no income component to the investment thesis. |
| Execution risk | Medium / high | Successfully getting chips into long-cycle automotive manufacturing programs requires precise timing and execution. |
Analysis of Past Performance
Type Stock | Historic Profit 15.16% | Avg. Invested days 40 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/30/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.85B USD | Price to earnings Ratio - | 1Y Target Price 87.55 |
Price to earnings Ratio - | 1Y Target Price 87.55 | ||
Volume (30-day avg) 1.5M shares | Beta 2.38 | 52 Weeks Range 48.30 - 96.69 | Updated Date 10/30/2026 |
52 Weeks Range 48.30 - 96.69 | Updated Date 10/30/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.27 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Automotive | CV-series chips for ADAS, parking assistance, and autonomous driving systems. | This is the primary growth driver as cars become smarter and require more AI processing. |
| Security and Industrial | SoCs for professional security cameras and industrial IoT applications. | Provides a base level of recurring revenue as security systems continue to upgrade to smart AI-based monitoring. |
| Geography | Global distribution with significant exposure to markets in Asia and the US. | Geopolitical developments can influence supply chain costs and end-market access. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE - | Forward PE 62.89 | Enterprise Value 2.66B | Price to Sales(TTM) 6.82 |
Enterprise Value 2.66B | Price to Sales(TTM) 6.82 | ||
Enterprise Value to Revenue 6.37 | Enterprise Value to EBITDA -57.06 | Shares Outstanding 44.14M | Shares Floating 42.14M |
Shares Outstanding 44.14M | Shares Floating 42.14M | ||
Percent Insiders 4.32 | Percent Institutions 86.01 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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