Ambarella, Inc. (AMBA): A Bull Case Theory

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n=e.getConfig();"smartphone"===n.device&&("finance"===n.property&&"crunch"===n.ytheme&&e.addElementListener(t.searchInput,"click",(function(){var n,o;n="search_input_focus_click",null!==(o=re())&&(oe[n]||(oe[n]=o)),e.addElementListener(t.searchForm,"click",(function(){if(t.ybar){if(t.ybar.classList.contains("ybar-searchbox-assist-fullscreen"))return;t.ybar.classList.add("ybar-searchbox-assist-fullscreen"),t.ybar.classList.add("ybar-searchbox-assist-fadein")}if(!document.documentElement.classList.contains("ybar-overlay")){document.documentElement.classList.toggle("ybar-overlay"),document.body.classList.add("ybar-overlay-noscroll");te("ybar","websrch","",{elm:"expand",subsec:"searchbox",itc:"1"})}}))})),e.addElementListener(t.searchBoxPlaceholder,"click",(function(){zt(e,t)})),e.addElementListener(t.searchBoxPlaceholder,"keydown",(function(n){var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Ricardo PillaiTue, February 24, 2026 at 5:45 PM GMT+1 3 min readWe came across a bullish thesis on Ambarella, Inc. on X.com by @TheValueist. In this article, we will summarize the bulls’ thesis on AMBA. Ambarella, Inc.'s share was trading at $63.64 as of February 6th. AMBA’s forward P/E was 106.38 according to Yahoo Finance.Broadcom (AVGO) Seen Well Positioned as AI Spending Concerns EaseAmbarella, Inc. is a fabless semiconductor company focused on low-power, high-performance edge AI systems-on-chip that integrate video processing, image signal processing, and on-device AI inference into a single, highly optimized platform. Following a prolonged post-pandemic digestion phase, the company is now entering a clear growth re-acceleration, with fiscal Q3 2026 revenue reaching $108.5 million, up 31% year over year, alongside strong 60.9% non-GAAP gross margins and a return to non-GAAP profitability.Management raised full-year fiscal 2026 revenue guidance to 36–38% growth, positioning Ambarella to achieve a record revenue year, supported by both unit growth and rising average selling prices as higher-value AI SoCs become a larger mix of sales.Ambarella’s core differentiation lies in its performance-per-watt advantage and its tightly integrated “video plus AI plus low power” architecture, which is well suited for power- and thermally constrained edge deployments across enterprise security, consumer devices, drones, robotics, and emerging edge infrastructure appliances. The company is also deepening its software moat through the Cooper Developer Platform, aimed at reducing deployment friction and enabling customers to transition away from GPU-centric solutions by offering lower total cost of ownership at the edge.Strategically, Ambarella is expanding beyond traditional camera endpoints into higher-ASP opportunities such as edge infrastructure aggregation devices, advanced drones, and AI-enabled automotive telematics, while maintaining enterprise security as a stable demand anchor. Although customer concentration and consumer cyclicality remain risks, the company’s strong cash position, improving operating leverage, and expanding AI workloads create an attractive upside profile. If execution continues and edge AI adoption broadens, Ambarella is well positioned for sustained multi-year growth and valuation support.Previously, we covered a bullish thesis on Monolithic Power Systems, Inc. (MPWR) by Hidden Market Gems in April 2025, which highlighted the company’s fabless operations, strong margins, diversified customer base, and AI exposure. MPWR’s stock price has appreciated by approximately 118.89% since our coverage. @TheValueist shares a similar thesis but emphasizes Ambarella, Inc.’s edge AI growth acceleration, performance-per-watt advantage, and expanding software moat.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,882.13 +44.38 (+0.65%)Dow 3049,164.60 +360.54 (+0.74%)Nasdaq22,848.50 +221.23 (+0.98%)Russell 20002,641.92 +20.93 (+0.80%)VIX19.98 -1.03 (-4.90%)Gold5,150.20 -75.40 (-1.44%)Trending tickersAMD Advanced Micro Devices, Inc. 212.84 +16.24 (+8.26%)BTC-USD Bitcoin USD 64,262.21 -1,139.95 (-1.74%)IBM International Business Machines Corporation 230.94 +7.58 (+3.40%)F Ford Motor Company 14.18 +0.53 (+3.92%)IOVA Iovance Biotherapeutics, Inc. 3.7450 +0.8550 (+29.64%)PortfolioSign in to access your portfolioSign inTop gainersKEYS Keysight Technologies, Inc. 304.23 +59.23 (+24.18%)DRS Leonardo DRS, Inc. 44.21 +6.07 (+15.92%)FRMI Fermi Inc. 10.26 +1.28 (+14.25%)IBRX ImmunityBio, Inc. 11.23 +1.40 (+14.21%)WLK Westlake Corporation 104.90 +11.88 (+12.77%)Top losersXMTR Xometry, Inc. 45.69 -11.46 (-20.05%)CECO CECO Environmental Corp. 62.67 -15.01 (-19.33%)WHR Whirlpool Corporation 74.20 -9.01 (-10.83%)AWI Armstrong World Industries, Inc. 175.05 -17.78 (-9.22%)DDS Dillard's, Inc. 590.65 -55.53 (-8.59%)Most activeNVDA NVIDIA Corporation 193.06 +1.51 (+0.79%)INTC Intel Corporation 45.77 +2.14 (+4.91%)AMD Advanced Micro Devices, Inc. 212.84 +16.24 (+8.26%)PLUG Plug Power Inc. 1.9038 +0.0638 (+3.47%)F Ford Motor Company 14.21 +0.56 (+4.14%)Top economic eventsEarnings eventsMy earnings eventsEarnings events