AMBA - Ambarella Inc. - Future Potential

Hello Everyone, Followers

AMBA - Ambarella Inc. is the second one today to mention as Future opportunities.

AMBA (Ambarella, Inc.)
Opportunities / Strengths

Strong positioning in video / vision / edge AI
Ambarella is a fabless semiconductor company focusing on video compression, image processing, computer vision, and vision applications used across security, ADAS (Advanced Driver Assistance Systems), robotics, drones, etc.

Recent earnings momentum
Their recent Q2 (fiscal 2026) results outperformed expectations, which contributed to an uptick in investor sentiment. %49.9 YoY Revenue Growth, 3.5 B Market Cap, 259.5 M Cash.
They also appear to be gaining strength in the “edge AI” market.

Potential strategic transaction / sale
Ambarella is reportedly exploring strategic options, including a possible sale. That can unlock value if a buyer offers a premium. This part attracts me more. That could means , Potential Acquisition target for Nvidia

Technical strength
Its stock has recently moved into stronger relative strength territory; some technical scores are high.

Risks / Weaknesses

Profitability volatility
Ambarella has had periods of losses or modest margins. Their profitability is sensitive to cost, component supply, and product mix. Still not profitable company

Dependence on macro / cycles in hardware & semiconductors
As with many semiconductor plays, demand cycles, supply chain constraints, and capital-intensive operations can weigh heavily.

Execution of strategic move
If they go for a sale or major restructuring, it may distract or risk mispricing. There is no guarantee a deal happens or is favorable.

Competition and technological obsolescence
The video / computer vision / AI chip space is fast-moving, with rivals large and small. Ambarella must continuously innovate to stay relevant.

Summary:
Ambarella is in a more mature, less speculative realm compared to EVLV. It combines semiconductor/vision exposure with growth in edge AI. The possibility of a sale gives an upside catalyst. But the usual semiconductor risks apply — execution, margins, demand cycles, and tech disruption.

As above said , it is less risky than EVLV and only Potential Acquisition target for Nvidia plays a big role of my investment.

Quick Technical Part: 88.40 - 88.50 is a resistance level and if it breaks this level then there is a big potential to reach 115- 116 level. Trend is still UP.

I have already added AMBA to my Watch list and i will closely follow-up the News flows then AMBA could be my new Long Term Investment.

This is just my thinking and it is not invesment suggestion , please do not make any decision with my anaylsis.

Have a lovelly Sunday to all and Good Start a Week.