Ambarella Beats Q2 Revenue but Executives Sold at $90
Ambarella just filed its fiscal Q2 2027 earnings on September 3, with news coverage citing record edge AI demand and a revenue beat — its fourth consecutive EPS beat — yet the stock sits at $62.89, we
Ambarella Beats Q2 Revenue but Executives Sold at $90
NEW YORK, September 8 —
Ambarella, Inc. (AMBA) posted its fourth consecutive EPS beat on September 3, crediting record edge AI demand. Yet the stock sits at $62.89, well below the $90.08 price at which the CEO and a senior vice president liquidated $2.35 million in shares on the same July day, while Bank of America issued a pessimistic forecast.
- CEO Feng-ming Wang sold 16,250 shares at $90.08 on July 1; the stock now trades 30% below that exit price.
- Trailing EPS is -$1.30; the stock trades at 56.1x forward P/E, pricing in a profitability turn not yet in GAAP.
- Net insider purchases over 90 days: zero, against $4.6 million in open-market sales across the executive team.
The Beat Underneath the Beat
Ambarella designs low-power system-on-a-chip semiconductors; its CVflow architecture integrates video processing, image signal processing, and AI computation on a single chip, serving automotive ADAS cameras, driver monitoring systems, enterprise security, and video conferencing. The company sells to automotive OEMs, Tier-1 suppliers, and ODMs across Asia Pacific, Europe, and North America. Trailing revenue grew 13.2% year-over-year to $420 million, with gross margin at 58.5%. Four consecutive EPS surprises suggest momentum, but Investor's Business Daily called the fiscal Q2 report "mixed", a verdict that, alongside the CEO's exit near the recent price peak, is harder to dismiss than the headline beat suggests.
Coordinated Sales, Zero Purchases
The July 1 transactions stand out for coordination as much as scale. CEO Feng-ming Wang sold 16,250 shares, per Form 4 filings, on the same day Senior VP Chi-hong Ju sold 10,000 shares at $88.84. Net insider purchases over the full 90-day window: zero, against $4.6 million in open-market sales across the executive team. The stock sits well below those exit points. Bank of America has since issued a pessimistic price forecast.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| AMBA | $2.8B | 56.1x | -25.7% |
| GPRO | $351M | n/a | +1.8% |
| NXPI | $57.5B | 12.6x | +1.9% |
| SWKS | $11.1B | 14.9x | -1.4% |
| QRVO | $9.1B | 13.0x | +11.6% |
| MBLY | $7.3B | 17.6x | -42.6% |
The Multiple Requires a Story
At 56.1x forward earnings, Ambarella's valuation depends on a loss-to-profit transition visible in adjusted figures but not yet in GAAP. Free cash flow of $33 million and operating cash flow of $27 million show the business generating real cash; the balance sheet holds $270 million against just $10 million in debt. The key test next quarter is whether revenue growth holds above 13% and adjusted profitability keeps narrowing toward GAAP-positive, the threshold where the 56x multiple and the consensus analyst target of $89.36 make the same case. See the full DCF model and price target →
Current fundamentals, valuation and filing history for Ambarella, Inc. (AMBA) are tracked on its Basis Report page.
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Ambarella just filed its fiscal Q2 2027 earnings on September 3, with news coverage citing record edge AI demand and a revenue beat — its fourth consecutive EPS beat — yet the stock sits at $62.89, well below the $90.08 price at which the CEO and a senior vice president sold a combined $2.35 million in shares on a single day in early July, and Bank of America has now issued a pessimistic price forecast.