Ambarella (AMBA): A Top 10 Robotics Stock on Sale Down 34%

We just published the list of the 10 Best Robotics and Automation Stocks to buy that are on sale, and Ambarella, Inc. (AMBA) is ranked 7th on this list.

Robotics and automation have become increasingly important areas of investment as manufacturers, logistics operators, and businesses turn to intelligent systems to improve productivity. Yet the expansion of the industry has not translated into consistent stock-market gains for every company involved. Several prominent robotics and automation stocks have fallen more than 30% from their 52-week highs, raising questions about the gap between the industry’s long-term potential and the financial performance of individual businesses. Access our meticulously compiled list of the 10 Most Profitable Stocks of the Past 5 Years to see which companies are generating the most profits.

However, it is significant for investors to note that the underlying demand for automation is continuing to expand. According to the International Federation of Robotics, factories worldwide installed more than 600,000 industrial robots in 2025, an increase of 11% from the previous year. The global operational stock reached approximately five million robots, while the United States overtook Japan to become the world’s second-largest market for industrial robot installations. You can also take a look at the 10 Best Autonomous Vehicle Stocks To Buy Backed by Hedge Funds to see hedge funds’ favorite robotics stocks. Autonomous vehicles are a specific kind of robots that are on wheels after all.

12 Best Stocks to Buy and Hold For the Next 2 Years

Photo by osamu nakazawa on Unsplash

Ambarella, Inc. (NASDAQ:AMBA) made our list of the best robotics stocks that are on sale for two reasons. First, AMBA shares declined more than 34.72% since hitting its 52-week high. Second, 33 hedge funds are bullish on the stock, making AMBA a very popular stock in this space.

Ambarella, Inc. is approaching the robotics opportunity through semiconductor technology rather than complete automated systems. Its edge AI processors support applications requiring computer vision and local data processing, including robotics, industrial equipment, and intelligent devices.

The significance of this approach lies in the growing computing requirements of autonomous machines. Processing information directly on devices can support applications where rapid responses and efficient power consumption matter. However, Ambarella’s opportunity remains broader than robotics alone, encompassing automotive and Internet of Things markets.

READ ALSO: 10 Best Tech Stocks for the Next 5 Years

The company’s second-quarter fiscal 2027 results showed revenue increasing 13.2% year over year to $108.1 million, while its GAAP net loss narrowed to $6.7 million from $20.0 million. Management also highlighted demand for its CV75 and CV72 AI systems-on-chip and the introduction of its X7 standalone AI accelerator.

Despite these improvements, GAAP gross margin declined from 58.9% to 57.7%, which is significant to note because stronger sales do not automatically guarantee corresponding improvements in profitability. For investors, Ambarella’s appeal depends on whether broader adoption of edge AI can produce sustained earnings growth, rather than simply expanding the number of applications its technology can serve.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Follow Insider Monkey on Google News.