Craig-Hallum Maintained a Buy Rating on Ambarella (AMBA), Keeps the PT

Ambarella, Inc. (NASDAQ:AMBA) is one of the 11 Best Tech Stocks to Buy On the Dip. On June 2, Craig-Hallum analyst Richard Shannon maintained a Buy rating on Ambarella, Inc. (NASDAQ:AMBA) with a price target of $95. The reaffirmed rating comes after the company released encouraging results for the fiscal first quarter of 2026, despite a tough market environment.

Ambarella, Inc. (NASDAQ:AMBA) reported its FQ1 2026 results on May 29. The revenue of $85.9 million grew 57.6% year-over-year., surpassing market consensus by $1.86 million. The EPS of $0.07 also exceeded expectations by $0.03. The growth was driven by its AI business as AI-related products accounted for more than 75% of its Q1 revenue. This also marked the fourth consecutive quarter of record AI revenue.

A scientist in a lab coat and goggles operating a state-of-the-art semiconductor production line.

Management noted Ambarella, Inc. (NASDAQ:AMBA) is becoming a leader in edge AI and has over 32 million AI processors shipped cumulatively. Moreover, its proprietary CVflow AI SoCs support a wide range of generative and vision AI models. The company expects FQ2 revenue between the range of $86.0 million and $94.0 million.

Ambarella, Inc. (NASDAQ:AMBA) is a tech company that develops low-power system-on-a-chip semiconductors and software for edge artificial intelligence applications.

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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Disclosure: None.