2024-05-28 14:39:18 ET
Summary
- Ambarella is entering another quarterly report with promises, but its history of execution is questionable.
- Quarterly revenue is expected to grow sequentially with all focus on FQ2 guidance for $60-plus million in quarterly revenue.
- The stock is already fairly valued at 6x to 8x sales targets, but Ambarella appears poised for another unsustainable rally due to AI and AV hype.
Ambarella ( AMBA ) enters another quarterly report with a ton of promises, but the semiconductor company has no history of continuous execution. The most recent potential was a strong order backlog in automotive, but the company has already shifted to AI inference chips while sales have plunged. My investment thesis remains slightly bullish on the stock trading near lows due to a likely cyclical upturn in the business....
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Ambarella: Unfulfilled Potential