SAN JOSE — Rosenblatt Securities raised its price target for Ambarella Inc. to $120 and named the chipmaker a top pick for the second half of 2026 in late June. The analyst action triggered a 28% single-day increase in Ambarella's stock price on June 30, 2026.

Ambarella designs System-on-a-Chip (SoC) products used for computer vision and edge AI applications. These chips are utilized in surveillance systems, drones, autonomous vehicles, and robotics. Kevin Cassidy, an analyst at Rosenblatt, stated: "Ambarella is a pure play on physical AI, perhaps the ultimate play, as its low-power, high-performance System-on-a-Chip (SoC) designs provide utility across a wide range of use cases."

The company reported record automotive revenue during the first quarter of 2026. As of early July 2026, analysts tracked by MarketBeat hold a consensus Moderate Buy rating for Ambarella stock, with 14 analysts showing a 57% Buy-side bias.

Institutional investors hold more than 80% of Ambarella stock. In the second quarter of 2026, institutional buying of the stock surpassed selling at a ratio of nearly $24 bought for each $1 sold. Additionally, Ambarella's short interest stood at approximately 7% in early July 2026. On July 6, 2026, Ambarella's stock price rose by 8.27% at the market open.

Why It Matters

Rosenblatt's rating and price target increase for Ambarella indicate potential investor confidence in the company's market position within the computer vision and edge AI sectors. The increased institutional investment and the stock's large single-day surge reflect the market's response to this outlook. Ambarella's focus on low-power, high-performance chips addresses demand in growing technological fields like autonomous vehicles and robotics.