NEW YORK, June 30, 2026, 13:08 EDT
- Ambarella, Inc. NASDAQ:AMBA popped 25.2% to $83.88 at 12:48 p.m. EDT. Gains outpaced major chip ETFs, which were up 3%-4%.
- Northland Securities’ $101 target is now around 20% over Ambarella’s current price, a drop from about 51% over Monday’s close.
- Ambarella’s market cap jumped by about $735 million on the day, which is almost 15 times bigger than its fresh $50 million buyback plan.
- U.S. markets traded normal hours on Nasdaq. The exchange will close for Independence Day in 2026 on July 3.
Ambarella, Inc. NASDAQ:AMBA jumped 25.2% to $83.88 as of 12:48 p.m. EDT Tuesday, after trading 2.87 million shares. The stock moved between $66.93 and $84.12 for the day so far. Nasdaq’s normal trading hours are 9:30 a.m. through 4:00 p.m. ET. The next U.S. market holiday is Friday, July 3, for Independence Day.
Ambarella’s ($AMBA) jump in market value far outstripped its buyback move. The math puts about 43.6 million shares out, so with shares up $16.87, the company picked up approximately $735 million in added equity value since Monday. That is almost 15 times bigger than the $50 million repurchase Ambarella plans to start after its current program wraps June 30.
| Measure | Number |
|---|---|
| Latest AMBA quote | $83.88 |
| Day move | up $16.87, or 25.2% |
| Market value | $3.66 billion |
| Implied share count | 43.6 million |
| Implied value added Tuesday | $735 million |
| New buyback plan | $50 million by June 30, 2027 |
| New buyback as share of market value | 1.4% |
Northland Securities’ $101 price target for Ambarella doesn’t look as far off after the recent move. Insider Monkey said on June 29 that Northland kept its Outperform and $101 target back on June 17, citing rising AI data costs and privacy issues as reasons more enterprise AI is shifting from the cloud to on-prem, something Northland sees helping Ambarella. The $101 target stands 20.4% above the latest $83.88 price. The gap was 50.7% at Monday’s $67.01 close.
Ambarella is trading above other chip names right now, according to recent quotes.
| Instrument | Latest move |
|---|---|
| Ambarella, Inc. NASDAQ:AMBA | shares jumped 25.2% |
| iShares Semiconductor ETF NASDAQ:SOXX | gained 3.7% |
| VanEck Semiconductor ETF (NASDAQ:SMH) | rose 3.3% |
| NVIDIA Corp. NASDAQ:NVDA | added 1.5% |
| Qualcomm Inc. NASDAQ:QCOM | fell 1.3% |
| Mobileye Global Inc. NASDAQ:MBLY | ran up 12.3% |
Why it matters: Ambarella’s buyback plan won’t move the needle on its own. As of April 30, the company had $45.6 million left on its old buyback, set to expire June 30. Ambarella says it doesn’t have to buy any certain amount under these plans. At today’s price, a $50 million buyback would take out about 596,000 shares, or 1.4% of shares, before figuring in costs or deciding when and how to buy.
Edge-AI deals are now key to growth. Ambarella and Hanwha Vision Co Ltd (KRX:489790) said on May 28 that they signed a long-term edge-AI agreement worth over $800 million in possible revenue across more than 10 years. That’s more than double Ambarella’s fiscal 2026 revenue of $390.7 million. Fermi Wang, Ambarella’s president and CEO, called it “one of the largest partnerships in Ambarella’s history,” saying it could bring “substantial multi-year revenue growth.” GlobeNewswire
During the May earnings call, Wang said demand for edge AI is “very strong,” adding that upcoming products are priced “well in-excess of our current ASP.” Ambarella put its fiscal Q2 revenue outlook at $105 million to $111 million, after posting $100.4 million for fiscal Q1. GlobeNewswire
Cost base stays in focus after the rally. Ambarella booked a GAAP net loss for the April quarter, with R&D spending making up over half of revenue.
| Operating check | Latest figure |
|---|---|
| Fiscal Q1 revenue | $100.4 million, up 16.9% from a year ago |
| GAAP net loss | $18.1 million, less than the $24.3 million loss last year |
| Non-GAAP net income | $5.0 million |
| Research and development | $58.1 million, which is about 58% of revenue |
| Stock-based compensation | $21.9 million, close to 22% of revenue |
| Inventory | $80.4 million, up 54% since Jan. 31 |
| Fiscal Q2 revenue guide midpoint | $108.0 million, up about 7.6% from Q1 |
