Stifel has reiterated its Buy rating on Ambarella Inc. and kept a $100 price target on the stock, which is currently trading at $70.72 and values the company at about $3.04 billion. The firm cites the company’s traction in edge AI inference processors and a broadening set of customer engagements as key reasons for the call.
Stifel noted that Ambarella appears well placed to achieve its fiscal fourth-quarter 2026 revenue estimate of $100 million. That figure represents a sequential decline of 7.8%, and the firm says the projection balances ongoing demand for the company’s edge AI chips against normal seasonal downturns.
The research house highlighted Ambarella’s recent momentum, pointing to 48% revenue growth over the last twelve months. Analysts covering the company are projecting 37% revenue growth for fiscal 2026. Stifel also indicated the company is positioned to guide toward or modestly above its first-quarter fiscal 2027 estimates, which themselves reflect customary seasonality.
Edge AI has been a dominant component of Ambarella’s business. Stifel observed that the product category has produced six consecutive record quarters and now accounts for roughly 80% of total revenue. The firm emphasized that Ambarella’s mix and the variety of customer engagements give it a favorable stance to capture share in emerging edge AI opportunities.
Market analysts have shown optimism around the near-term outlook. Eleven analysts have revised earnings estimates upward for the upcoming period, and Ambarella’s next earnings report is scheduled for February 26. Stifel said its $100 price target corresponds to a 9.6 times enterprise value-to-sales multiple on calendar year 2026 figures.
Other broker activity and company developments have reinforced the bullish narrative. Rosenblatt recently raised its price target from $100 to $115 while retaining a Buy rating, calling attention to increasing demand for Ambarella’s edge AI solutions and a diversifying customer base adopting more complex AI system-on-chips.
Product and ecosystem updates from Ambarella were also cited in analyst commentary. The company introduced a Developer Zone platform designed to help partners build and deploy edge AI applications, offering optimized models and templates and support through Cooper development software. At CES, Ambarella unveiled its CV7 edge AI vision system-on-chip, positioned for advanced AI perception applications across consumer and automotive use cases. Separately, Stifel reiterated its Buy rating and $100 price target following the launch of Insta360’s Antigravity A1 drone, which features Ambarella’s CV5 system-on-chip.
Stifel further maintained its Buy stance after an investor briefing in which it noted Ambarella’s shift toward a channel-based ecosystem strategy. That strategy centers on alliances with independent software vendors and global system integrators to scale deployments of Ambarella’s solutions.
Summary
Stifel reaffirmed a Buy rating and $100 target on Ambarella, citing strong edge AI performance, six consecutive record quarters for the segment, and a product and partner roadmap that includes the Developer Zone platform and the CV7 chip. The firm expects Ambarella to meet its fiscal Q4 2026 revenue estimate of $100 million and to guide toward or slightly above fiscal Q1 2027 estimates amid seasonality.
Key points
- Stifel maintained a Buy rating and $100 price target; stock trades at $70.72 with a market cap of $3.04 billion.
- Ambarella reported 48% revenue growth over the last twelve months and analysts forecast 37% revenue growth for fiscal 2026; edge AI now represents about 80% of revenue.
- Recent company developments include the Developer Zone platform, the CV7 system-on-chip revealed at CES, and commercial design wins such as Insta360’s Antigravity A1 drone using the CV5 chip.
Risks and uncertainties
- Seasonality: Stifel’s estimates and the company’s near-term guidance explicitly factor in typical seasonal declines, which could affect revenue timing for semiconductor and AI infrastructure suppliers.
- Execution risk: Ambarella’s strategy depends on successful commercialization of new chips and ecosystem initiatives with independent software vendors and global system integrators, which could influence adoption in target end markets such as consumer electronics and automotive.
- Analyst estimate sensitivity: While several analysts have raised earnings estimates, changes in demand or timing could prompt further revisions, affecting market perceptions in the semiconductor and AI hardware sectors.
Tags: Semiconductors, AI, Edge, AMBA