Ambarella, Inc. (NASDAQ:AMBA) is one of the best semiconductor equipment stocks to invest in now.
BofA cut the price target on Ambarella, Inc. (NASDAQ:AMBA) to $72 from $85 on February 27, keeping a Neutral rating on the shares. It told investors that while the company reported in-line fiscal Q4 results and Q1 guidance, shares were down post-close on news of new U.S. limits imposed on Arashi Vision due to a patent dispute from GoPro. Arashi Vision operates as Insta360 and is Ambarella, Inc.’s (NASDAQ:AMBA) largest customer. BofA lifted FY27 and FY28 sales estimates 3% and 2% and pro-forma EPS forecasts to 71c and 93c, respectively, but trimmed its target with the edge AI opportunity balanced by slightly slower sales growth than small-to-mid cap semi peers.
Ambarella, Inc. (NASDAQ:AMBA) reported its fiscal Q4 and full year 2025 earnings on February 26, reporting revenue of $100.9 million for fiscal Q4 2026, up 20.1% from $84.0 million in the same period in fiscal 2025. Revenue for the fiscal year ended January 31, 2026, was $390.7 million, up 37.2% from $284.9 million for the prior year.
Ambarella, Inc. (NASDAQ:AMBA) develops low-power system-on-a-chip, or SoC, semiconductors and software for edge artificial intelligence, or AI, applications. The company’s products include electronic mirrors, video security, advanced driver assistance (ADAS), drive recorders, driver or cabin monitoring, autonomous driving, and other robotics applications. Its geographical segments include Taiwan, Asia Pacific, Europe, North America other than the United States, and the United States.
While we acknowledge the potential of AMBA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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