Ambarella: Riding The Next Wave

Summary:

• Ambarella, Inc.’s AI edge demand is promising, but sales levels remain modest, leading to a slightly bullish stance when the stock trades between $50 and $75.
• The company reported strong FQ3 growth, driven by AI inference processors, but faces challenges with weak ADAS demand and reduced automotive backlog.
• With a strong balance sheet and potential for future growth, the stock is a slight buy, ideal for trading between $50 and $100.

Ambarella, Inc. (NASDAQ:AMBA) remains one of the most volatile chip companies due to the constant riding of the waves of the last hot product market. The company is now seeing an upside from AI edge demand, but the

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