--- title: "A Look at Ambarella's Valuation After Revenue Forecast Hike and Strong Quarterly Results" description: "Ambarella (AMBA) has raised its revenue forecast for fiscal 2026, anticipating growth of up to 35%, and reported strong second-quarter results. The stock has surged 38% over the past year, outperformi" type: "news" locale: "en" url: "https://longbridge.com/en/news/255314089.md" published_at: "2025-08-30T13:35:29.000Z" --- # A Look at Ambarella's Valuation After Revenue Forecast Hike and Strong Quarterly Results > Ambarella (AMBA) has raised its revenue forecast for fiscal 2026, anticipating growth of up to 35%, and reported strong second-quarter results. The stock has surged 38% over the past year, outperforming the market. Analysts consider Ambarella undervalued by 8.4%, with a fair value of $90.05, driven by growth in edge AI processing. However, operational risks and differing views on valuation, including a potentially overpriced assessment from a DCF model, raise questions about future growth expectations. Investors are encouraged to explore various analyses and investment opportunities. Ambarella (AMBA) just released a pair of positive updates, and anyone watching the stock is likely paying closer attention. The company not only raised its revenue forecast for fiscal 2026, expecting growth as high as 35%, but also delivered second-quarter results that exceeded many expectations. With sales climbing and net losses shrinking year over year, these updates are signaling that changes may be underway for the semiconductor company. The excitement from the improved guidance and stronger earnings quickly translated into momentum for the stock. Over the past year, shares have jumped 38% and have outperformed the market in recent months. Momentum over the past quarter suggests renewed optimism among investors. This comes alongside annual revenue and net income growth, fueling debate over what is already reflected in the current price. Following the stock’s climb and new outlook, questions are emerging about whether Ambarella presents an appealing opportunity or if the market has already priced in much of its anticipated future growth. ## Most Popular Narrative: 8.4% Undervalued According to the community narrative, Ambarella is considered undervalued by 8.4% based on analyst consensus, with fair value estimates reflecting medium-term earnings growth and margin expansion potential. > Ambarella's strategic focus on edge AI processing with more advanced reasoning models, such as DeepSeek-R1, is driving an increase in average selling prices (ASP). This presents opportunities to leverage AI at the edge for new applications, which may positively influence revenue growth. Curious about what is driving this bullish price target? The narrative is built on breakthrough growth rates, future profitability projections, and anticipated margin improvements. The key question is how these expectations compare to Ambarella’s existing fundamentals. Explore the methods, forecasts, and factors contributing to this valuation. **Result: Fair Value of $90.05 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, operational risks such as reliance on a single logistics provider and shifting government policies could quickly dampen Ambarella’s upward outlook. Find out about the key risks to this Ambarella narrative. ## Another View: What Does Our DCF Model Say? While analysts see Ambarella as undervalued based on earnings growth and potential margins, our SWS DCF model offers a different perspective. It suggests the stock might be overpriced instead. Which approach captures the true picture? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ambarella for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Build Your Own Ambarella Narrative If you have a different take or want to interpret the numbers in your own way, you can quickly generate your own assessment and perspective in just a few minutes. Do it your way A great starting point for your Ambarella research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. ## Looking for More Investment Ideas? Step ahead of the crowd by using the Simply Wall Street Screener to spot the next compelling opportunities. Make your money work smarter by uncovering niche sectors, emerging themes, or overlooked potential—all with a few clicks. If you are serious about investing, you won’t want to skip these fresh angles. - Capture untapped growth from companies harnessing artificial intelligence by starting with the latest picks in AI penny stocks. - Secure your portfolio with steady returns. See which businesses boast high yields through dividend stocks with yields > 3%. - Target tomorrow’s hidden gems in undervalued markets by seeking out opportunities with undervalued stocks based on cash flows. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### Related Stocks - [AMBA.US - Ambarella](https://longbridge.com/en/quote/AMBA.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 馬斯克宣布 xAI 重組及員工離職 稱「快速增長所必需」 | 馬斯克宣布 xAI 重組，涉及員工離職，稱這是公司快速增長所必需。xAI 與 SpaceX 合併後，重組將公司分為四個主要團隊，專注於 AI 聊天機器人 Grok、編程 AI 模型、圖像生成模型及 Macrohard 項目。儘管成立較晚，x | [Link](https://longbridge.com/en/news/275716620.md) | | 字節跳動自研 AI 晶片，三星談代工今年目標 10 萬顆 | 字節跳動正在研發自有 AI 晶片，並與三星電子洽談代工，以確保處理器供應穩定。由於美國出口管制，字節跳動啟動了代號為「SeedChip」的晶片計劃，旨在保障 AI 算力供應。預計在今年 3 月底前取得首枚樣品，並計劃今年生產至少 10 萬枚 | [Link](https://longbridge.com/en/news/275713889.md) | | WhatsApp：俄羅斯試圖全面封禁 | WhatsApp 表示，俄羅斯試圖全面封鎖該應用，意圖推動用户轉向國家控制的競爭性服務，可能影響 1 億人。俄羅斯威脅網絡平台，若不遵守規定將遭強制降低網速或禁用。WhatsApp 稱此舉是對用户安全私密通訊的倒退，並表示將繼續努力保持用户 | [Link](https://longbridge.com/en/news/275738218.md) | | 引爆美股 “黑色星期四” 的導火索，是這家市值 600 萬美元的 “小公司” | 前卡拉 OK 設備公司 Algorhythm Holdings 聲稱其 AI 物流平台可助客户在不增人手情況下將貨運量擴大 300%-400%，引發 AI 顛覆傳統行業擔憂：週四物流板塊重挫，羅素 3000 卡車運輸指數跌 6.6%，CH | [Link](https://longbridge.com/en/news/275829680.md) | | Oklo（OKLO）的燃料回收補助是否能悄然重新定義其長期競爭優勢？ | 美國能源部已向 Oklo 提供資金，以研究使用過的核燃料中的放射性材料，支持其在田納西州計劃建設的燃料回收設施。該舉措可能通過減少廢物和區分其反應堆模型來增強 Oklo 的競爭優勢。然而，儘管獲得了聯邦支持，Oklo 仍面臨重大的商業化和融 | [Link](https://longbridge.com/en/news/275956735.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.