Stock

Ambarella

AMBA

Semiconductors · Technology

Also trades as: 0YU1.L GBP 0.65 (+4.35%)

Price

$66.50

+3.38 (+5.35%)

Market Cap

$2.94B

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Oct 24, 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

For growth stock investors

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

Reported EPS Growth

+68.1% YoY

Quarterly reporting periods ended:

31 Jul 2025: $-0.47

31 Jul 2026: $-0.15

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

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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