Ambarella stock rose 21% in 2024, with potential growth in AI, automotive, and IoT markets

From Nasdaq: 2025-01-02 09:09:00

Ambarella (AMBA) stock has gained 21% in 2024 but lagged behind industry and sector growth. Despite this, Ambarella’s focus on AI, automotive, and IoT markets bodes well for future growth potential.

AMBA’s strategic focus on AI-based SoCs, automotive chips, and IoT applications is driving revenue growth. The company anticipates a 22-24% increase in fiscal 2025 revenues, with the CV family of products expected to be a key revenue driver.

However, AMBA faces competition from NVIDIA, QUALCOMM, and new Chinese players in the automotive market. Slow adoption of autonomous systems and high development costs are impacting near-term performance.

Investors should consider holding Ambarella stock for its long-term growth potential in transformative industries. Despite near-term challenges, AMBA’s commitment to innovation and market share capture make it a compelling player to watch in 2025.



Read more at Nasdaq: Ambarella Rises 21% in 2024: Should You Buy, Hold or Sell the Stock?