Ambarella develops low-power, high-definition video and AI vision system-on-chip solutions used in security cameras, automotive ADAS, robotics, and consumer devices. In the quarter ending April 30, 2025, it posted revenue of $85.9 million and non-GAAP EPS of $0.07, both ahead of Street estimates, yet reported a GAAP loss of $0.58 per share and guided next-quarter revenue only modestly higher (-$86 M to $94 M).
Key reasons AMBA’s stock has been under pressure
Modest near-term guidance Although Q1 beat on the top and bottom lines, Ambarella’s outlook implies only mid-single-digit sequential revenue growth—below investor hopes for a stronger ramp from its new CV5/CV7 AI SoCs.
Broader semiconductor headwinds The PHLX Semiconductor Index is down about 5.3 % year-to-date, reflecting trade-tariff uncertainty, inventory corrections at end markets, and macroeconomic concerns.
Rising bearish sentiment Short interest in AMBA shares climbed 19 % in March to 1.63 million shares (4.1 % of float), signaling growing skepticism among traders.
Profit-taking after strong rally AMBA stock has surged roughly 27 % over the past year, making it vulnerable to position-squaring amid the cautious outlook and sector pullback.
Bottom line: While Ambarella’s technology roadmap remains promising—especially its edge AI vision chips—near-term revenue guidance, a challenging semiconductor backdrop, and elevated short interest have combined to sap investor enthusiasm and pressure the stock.
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Ambarella's outlook stokes a sell-off, especially following run-up into earnings
Ambarella develops low-power, high-definition video and AI vision system-on-chip solutions used in security cameras, automotive ADAS, robotics, and consumer devices. In the quarter ending April 30, 2025, it posted revenue of $85.9 million and non-GAAP EPS of $0.07, both ahead of Street estimates, yet reported a GAAP loss of $0.58 per share and guided next-quarter revenue only modestly higher (-$86 M to $94 M).
Key reasons AMBA’s stock has been under pressure
Although Q1 beat on the top and bottom lines, Ambarella’s outlook implies only mid-single-digit sequential revenue growth—below investor hopes for a stronger ramp from its new CV5/CV7 AI SoCs.
The PHLX Semiconductor Index is down about 5.3 % year-to-date, reflecting trade-tariff uncertainty, inventory corrections at end markets, and macroeconomic concerns.
Short interest in AMBA shares climbed 19 % in March to 1.63 million shares (4.1 % of float), signaling growing skepticism among traders.
AMBA stock has surged roughly 27 % over the past year, making it vulnerable to position-squaring amid the cautious outlook and sector pullback.
Bottom line:
While Ambarella’s technology roadmap remains promising—especially its edge AI vision chips—near-term revenue guidance, a challenging semiconductor backdrop, and elevated short interest have combined to sap investor enthusiasm and pressure the stock.