TD (TSX:TD) Cowen has maintained a Hold rating on Ambarella (NASDAQ: NASDAQ:AMBA) shares while increasing the price target to $75 from the previous $65. This adjustment follows the company's release of solid financial results and very strong guidance.
Ambarella's recent performance has suggested that the company may have moved past the most challenging period. The firm's focus is now on capitalizing on design wins and escalating its new product revenue.
The growth is described as being evenly distributed across the Automotive and Internet of Things (IoT) sectors, with new products contributing to sequential strength.
TD Cowen's updated price target reflects a recognition of Ambarella's positive outcomes and outlook. The firm acknowledges the strong set of results and guidance provided by Ambarella, indicating a potential turning point for the company.
Despite the optimistic results and guidance, TD Cowen has chosen to maintain a Hold rating on Ambarella's stock. The firm notes that while the recent developments are undeniably positive, there is still much for the company to prove moving forward.
In other recent news, Ambarella reported significant growth in its second fiscal quarter of 2025, with a 17% sequential rise in revenue to $63.7 million. The revenue growth was largely driven by strong performance in edge AI inference.
The company's non-GAAP earnings per share were at a loss of $0.13, but this surpassed consensus estimates of a loss of $0.19 per share. Ambarella's management anticipates further growth in the third quarter of fiscal year 2025, projecting double-digit sequential increases, predominantly driven by expansions in the IoT and automotive sectors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.