BofA Cuts PT on Ambarella, Inc. (AMBA) to $72 From $85 – Here’s Why

Ambarella, Inc. (NASDAQ:AMBA) is one of the best semiconductor equipment stocks to invest in now.

BofA Cuts PT on Ambarella, Inc. (AMBA) to $72 From $85 - Here's Why

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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMBA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. Follow Insider Monkey on Google News.