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Ambarella

AMBA
32
Semiconductors · Technology
Also trades as: 0YU1.L GBP 0.62 (-5.03%)
Price
$62.89
-2.44 (-3.73%)
Market Cap
$2.76B
Exchange
NASDAQ
Winston Score
32
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Oct 9, 2026 · filings through Jul 31, 2026

§How the score breaks down

Quality
Mixed
8/30
Growth
Strong
15/20
Cash Flow
Weak
1/10
Stability
Data not available
0/10
Valuation
Data not available
0/10
Ownership
Mixed
6/15
Dividends
Not counted
n/a

30 of 95 counted points = Winston Score 32. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+16.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 36.6M (2022) → 42.7M (2026)

§Winston Score History

The full picture

Ambarella makes computer chips that process video. Its chips are used in security cameras, car cameras (like dashcams and driver-assistance systems), and other devices that need to record, compress, or analyze video footage. The company is known for combining video processing with artificial intelligence directly on the chip, which lets devices understand what they're seeing without sending data to the cloud.

Ambarella earns money by selling these chips to device manufacturers, who build them into finished products. It operates globally, with a large portion of its customers based in Asia, and generates roughly $300–400 million in annual revenue. The company's edge comes from its specialized AI-video chip designs, which are difficult to replicate quickly. However, Ambarella is currently unprofitable, spending heavily on research and development, and its growth depends on whether the automotive and edge-AI camera markets expand fast enough to absorb those costs.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+68.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$239M/ year

↑ Rising (+5% vs prior year)

61.0% of revenue

4.1x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

4.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$272M cash & investments at current burn rate

Heavy R&D investment

Ambarella is putting 61% of revenue into R&D and that number is rising. That's 4.1x the sector average. With 10+ years of cash runway, they have time to let it pay off.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
57.7%
Premium pricing power — 57.7% gross margin
Profit after running costs
Operating Margin
-7.5%
Losing money on operations — -7.5%
Return on the money invested
ROCE
-9.6%
Weak — -9.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+20.0%
Fast-growing sales (+20.0% YoY)
Profit growth
EPS YoY
N/A
—
Data not available
How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
—
Data not available
Spare cash per sale
FCF Margin
2.9%
Thin free cash flow (2.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
—
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
—
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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