AMBA

Interested in Ambarella, Inc.? Here are five stocks we like better. Ambarella’s fiscal Q2 revenue rose 13.2% year over year to $108.1 million, driven by record AI revenue and strong automotive and IoT demand. Automotive revenue reached a new high, while non-GAAP EPS was $0.18. The company forecast fiscal Q3 revenue of $115 million to $124 million and authorized a new $50 million stock-repurchase program. Ambarella also expects to maintain its 59%–62% long-term gross-margin target despite rising supply-chain costs. Ambarella raised its fiscal 2032 serviceable market forecast to $22.9 billion, citing expansion into edge infrastructure and AI accelerators such as the sampling X7. Partnerships with Capgemini and Macnica are intended to broaden enterprise and midsize-customer reach, though meaningful revenue is expected in two to three years. 3 Picks-and-Shovels Stocks Powering the Humanoid Robotics Buildout Ambarella (NASDAQ:AMBA) reported fiscal second-quarter revenue of $108.1 million, up 7.7% sequentially and 13.2% from a year earlier, as record AI revenue and continued demand from automotive and IoT customers supported results. The company posted non-GAAP diluted earnings per share of $0.18, or non-GAAP net income of $8.2 million. Revenue came in slightly above the midpoint of Ambarella’s prior outlook of $105 million to $111 million. Chief Financial Officer John Young said automotive revenue reached a new record, supported by commercial-vehicle adoption of AI technology. Automotive revenue grew slightly faster than the company’s IoT business, where enterprise-oriented operations outperformed consumer-led businesses. → Boarding Call: EHang Secures First-Mover Altitude This Edge AI Stock Just Got a Huge Vote of Confidence From Wall Street Non-GAAP gross margin was 59.3%, below the midpoint of the company’s prior 59% to 60.5% forecast. Non-GAAP operating expenses were $57.4 million, slightly below the midpoint of its projected $56 million to $59 million range. Ambarella ended the quarter with $272.3 million in cash and marketable securities, down $5.5 million sequentially but up $11.1 million from a year earlier. The sequential decline primarily reflected higher payments for intellectual-property licenses. Operating cash flow was negative $260,000, while free cash flow was negative $7.1 million after $6.8 million in capital expenditures. → Medtronic’s Stars Are Aligning for a Price Recovery MarketBeat Week in Review – 09/01 - 09/05 The board authorized a new $50 million stock-repurchase program through June 30, 2027. Ambarella did not repurchase shares during the fiscal second quarter. For the fiscal third quarter ending Oct. 31, Ambarella forecast revenue of $115 million to $124 million, with a midpoint of $119.5 million. The company expects IoT physical-AI demand to lead growth at the midpoint. It forecast non-GAAP gross margin of 59% to 60% and non-GAAP operating expenses of $56.5 million to $59.5 million. → Dutch Bros Sell-Off Creates a Growth Opportunity President and CEO Fermi Wang said rising memory prices and limited supply are affecting the wider technology supply chain as memory vendors prioritize AI data-center demand. Ambarella said it is helping customers pursue workarounds and expects to pass through its own higher supply-chain costs to protect its long-term gross-margin target of 59% to 62%. Wang clarified during the question-and-answer session that memory costs do not directly affect Ambarella’s gross margin because the company does not buy and resell memory. Instead, the concern is that higher memory prices could affect customers’ product volumes and, in turn, their chip purchases. The company said it saw little effect from memory constraints on second- and third-quarter revenue, but it is monitoring potential impacts in the fourth quarter. Wang said that, absent a material memory-related effect, investors should expect normal fourth-quarter seasonality. Ambarella raised its five-year serviceable available market forecast to $22.9 billion in fiscal 2032, from $8.5 billion in fiscal 2027, representing an estimated compound annual growth rate of about 20%. The company said IoT markets are expected to account for roughly 70% of the terminal-year opportunity. Wang said the largest driver of the revised forecast is the company’s expansion into edge infrastructure, where enterprises use on-premise AI inference hardware to improve operational efficiency. He identified security, retail, lodging, logistics and healthcare among the potential markets. The company is developing additional AI systems-on-chip products and a standalone AI accelerator line for edge infrastructure. Wang previewed the X7 accelerator, which is sampling and is expected to secure initial design wins in edge-infrastructure applications. The accelerator can serve as a co-processor for Arm- and x86-based host systems and can also be paired with Ambarella’s own chips. Wang said the X7 is designed to operate in a roughly 4- to 5-watt power envelope and requires a smaller memory footprint than GPU-based alternatives for certain workloads. He acknowledged that the market includes competitors such as NVIDIA and Qualcomm as well as numerous startups, but said Ambarella intends to compete on power efficiency, cost and its hardware-software platform. Ambarella announced two partnerships intended to establish an indirect sales channel: a strategic partnership with Capgemini and a seven-year agreement with technical distributor Macnica. The company said the relationships are designed to expand access to customers that have largely been unserved by Ambarella’s historically direct-sales model. Capgemini is expected to focus on larger enterprise deployments, while Macnica is expected to aggregate smaller and midsize customers in fragmented markets. Both partners will use Ambarella’s Cooper development platform, according to Wang. Management said meaningful revenue from the indirect-channel effort is expected in two to three years, though smaller design wins could generate revenue sooner. Wang said the company expects each partnership could produce about $500 million in revenue over seven years, while Customer Growth Officer Muneyb Minhazuddin said the estimates reflect different models: Macnica as a volume-oriented distribution opportunity and Capgemini as a higher-value, more complex enterprise opportunity. Ambarella also said its first semi-custom project, a 2-nanometer CVAS system-on-chip, remains expected to generate initial production revenue in fiscal 2028. Young said a separate customer-development project that resulted in a $9 million reduction in GAAP research-and-development expense was not among the semi-custom projects and involved an automotive autonomy customer. During the quarter, the company cited customer wins and engagements spanning quadruped robotics, enterprise video intercoms, trail cameras, AI monitoring, driver monitoring and camera-monitoring systems. Wang said Ambarella has added to the robotics design-win pipeline discussed in the prior quarter and raised its related revenue target, though the company did not provide updated figures. Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella's platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption. Ambarella's product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ambarella Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Ambarella (AMBA) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.50%. A quarter ago, it was expected that this video-compression chipmaker would post earnings of $0.11 per share when it actually produced earnings of $0.11, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ambarella, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $108.13 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $95.51 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ambarella shares have lost about 5.2% since the beginning of the year versus the S&P 500's gain of 12%. While Ambarella has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ambarella was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $119.46 million in revenues for the coming quarter and $0.77 on $440.71 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Descartes Systems (DSGX), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 10. This logistics provider is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +32.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Descartes Systems' revenues are expected to be $199.04 million, up 10.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ambarella, Inc. (AMBA) : Free Stock Analysis Report The Descartes Systems Group Inc. (DSGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SANTA CLARA, Calif., Sept. 03, 2026 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced second quarter fiscal 2027 financial results for the period ended July 31, 2026. Revenue for the second quarter of fiscal 2027 was $108.1 million, up 13.2% from $95.5 million in the same period in fiscal 2026. For the six months ended July 31, 2026, revenue was $208.5 million, up 14.9% from $181.4 million for the six months ended July 31, 2025. Gross margin under U.S. generally accepted accounting principles (GAAP) for the second quarter of fiscal 2027 was 57.7%, compared with 58.9% for the same period in fiscal 2026. For the six months ended July 31, 2026, GAAP gross margin was 58.0%, compared with 59.4% for the six months ended July 31, 2025. GAAP net loss for the second quarter of fiscal 2027 was $6.7 million, or loss per diluted ordinary share of $0.15, compared with a GAAP net loss of $20.0 million, or loss per diluted ordinary share of $0.47, for the same period in fiscal 2026. GAAP net loss for the six months ended July 31, 2026 was $24.8 million or loss per diluted ordinary share of $0.57. This compares with GAAP net loss of $44.3 million, or loss per diluted ordinary share of $1.05, for the six months ended July 31, 2025. Financial results on a non-GAAP basis for the second quarter of fiscal 2027 are as follows: Gross margin on a non-GAAP basis for the second quarter of fiscal 2027 was 59.3%, compared with 60.5% for the same period in fiscal 2026. For the six months ended July 31, 2026, non-GAAP gross margin was 59.6%, compared with 61.2% for the six months ended July 31, 2025. Non-GAAP net income for the second quarter of fiscal 2027 was $8.2 million, or earnings per diluted ordinary share of $0.18. This compares with non-GAAP net income of $6.4 million, or earnings per diluted ordinary share of $0.15, for the same period in fiscal 2026. Non-GAAP net income for the six months ended July 31, 2026 was $13.3 million, or earnings per diluted ordinary share of $0.30. This compares with non-GAAP net income of $9.5 million, or earnings per diluted ordinary share of $0.22, for the six months ended July 31, 2025. Based on information available as of today, Ambarella is offering the following guidance for the third quarter of fiscal year 2027, ending October 31, 2026: Revenue is expected to be between $115.0 million and $124.0 million. Gross margin on a non-GAAP basis is expected to be between 59.0% and 60.0%. Non-GAAP operating expenses are expected to be between $56.5 million and $59.5 million. Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. In addition, in our second quarter of fiscal 2027, we recognized a one-time $9.0 million reduction in our GAAP research and development expense on release of a deposit liability following the termination of a development project. Given the nature of this credit and that it is non-recurring, we excluded it from operating expenses for the purpose of reporting non-GAAP financial results. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release. Total cash, cash equivalents and marketable debt securities on hand at the end of the second quarter of fiscal 2027 was $272.3 million, compared with $277.8 million at the end of the prior quarter and $261.2 million at the end of the same quarter a year ago. “Our edge AI revenue reached record levels in Q2, with balanced sequential growth in Auto and IoT markets with very strong growth from our 5nm CV75 and CV72 AI SoCs. We are making significant progress with our strategic priorities to extend our market reach with new higher value products and the implementation of new go-to-market strategies. These include the introduction of our first stand-alone AI Accelerator, X7, and the execution of 7-year agreements to develop the indirect sales channel with both Macnica, a leading global technical distributor, and CapGemini, a leading global engineering and systems integration firm,” said Fermi Wang, President & CEO. “These developments are contributing to an increase in our 5-year serviceable market (“SAM”) forecast for edge AI and Physical AI.” Quarterly Conference Call Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the second quarter of fiscal year 2027 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call. About Ambarella With an installed base of more than 50 million AI SoC units, Ambarella’s products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella’s low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy.  For more information, please visit www.ambarella.com. "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the third quarter of fiscal year 2027 ending October 31, 2026, and the comments of our CEO relating to demand for edge AI solutions, our progress with strategic priorities to extend our market reach, our ability to successfully build an indirect sales channel, the forecasted size of our serviceable market (“SAM”), and our ability to successfully penetrate the edge AI and Physical AI markets. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance. The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation. Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2026 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also be set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC's web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2027 ended July 31, 2026 could differ from the preliminary results announced in this press release. Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law. Non-GAAP Financial Measures The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP and may be different from non-GAAP measures used by other companies. With respect to its financial results for the second quarter of fiscal year 2027, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the third quarter of fiscal year 2027, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. The following tables present details of stock-based compensation, acquisition-related costs and development project termination credit, included in each functional line item in the condensed consolidated statements of operations above: The difference between GAAP and non-GAAP gross margin was 1.6% and 1.6%, or $1.7 million and $1.5 million, for the three months ended July 31, 2026 and 2025, respectively. The difference between GAAP and non-GAAP gross margin was 1.6% and 1.8%, or $3.2 million and $3.2 million, for the six months ended July 31, 2026 and 2025, respectively. The differences were due to the effect of stock-based compensation and acquisition-related costs. Contact: Louis [email protected]

Broadcom Inc. (AVGO) came out with quarterly earnings of $3.32 per share, beating the Zacks Consensus Estimate of $3.22 per share. This compares to earnings of $1.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.11%. A quarter ago, it was expected that this chipmaker would post earnings of $2.4 per share when it actually produced earnings of $2.44, delivering a surprise of +1.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Broadcom Inc., which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $29.59 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $15.95 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Broadcom Inc. shares have added about 6.8% since the beginning of the year versus the S&P 500's gain of 11.5%. While Broadcom Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Broadcom Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.83 on $35.16 billion in revenues for the coming quarter and $11.74 on $106.07 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ambarella (AMBA), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Credo Technology Group Holding Ltd. (CRDO) came out with quarterly earnings of $1.2 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.56%. A quarter ago, it was expected that this company would post earnings of $1.03 per share when it actually produced earnings of $1.16, delivering a surprise of +12.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Credo Technology Group, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $479 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $223.07 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Credo Technology Group shares have added about 57.2% since the beginning of the year versus the S&P 500's gain of 12.3%. While Credo Technology Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Credo Technology Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $502.69 million in revenues for the coming quarter and $6.02 on $2.35 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ambarella (AMBA), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ichor Holdings (ICHR) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.68%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of +15.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ichor Holdings, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $294.78 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.85%. This compares to year-ago revenues of $240.29 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ichor Holdings shares have added about 308.4% since the beginning of the year versus the S&P 500's gain of 9.4%. While Ichor Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ichor Holdings was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $311.15 million in revenues for the coming quarter and $1.41 on $1.2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ambarella (AMBA), another stock in the same industry, has yet to report results for the quarter ended July 2026. This video-compression chipmaker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +6.7%. The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level. Ambarella's revenues are expected to be $108.03 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ambarella, Inc. AMBA delivered non-GAAP earnings of 11 cents per share in the first quarter of fiscal 2027, in line with the Zacks Consensus Estimate. Quarterly earnings jumped 57% year over year, mainly driven by higher revenues and disciplined cost management. First-quarter revenues soared 16.9% year over year to $100.4 million. The top line also came marginally ahead of the consensus mark of $100.2 million. First-quarter performance reflected steady execution against guidance and a business mix supported by record automotive momentum and expanding customer engagements around edge AI. Non-GAAP gross margin was 59.9% in the period, providing a firm profitability baseline as new product cycles ramp up. Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote During the first-quarter earnings call, management stated that Internet of Things (IoT) applications represented about three-fourths of total revenues, with seasonality weighing on consumer IoT, while enterprise security camera demand grew at a high-single-digit sequential pace. This mix underscores Ambarella’s continued leverage to edge AI adoption in security endpoints, even as parts of consumer demand fluctuate. Automotive, meanwhile, set a new quarterly revenue record, driven by strong double-digit growth tied to commercial vehicle telematics and safety applications. The company highlighted that AI penetration remains early in a large installed telematics base, supporting continued content gains as customers push toward more sensors and more complex on-device workloads. Ambarella framed the broader market backdrop as a shift from centralized AI training toward distributed inferencing, with more processing moving to the edge. During the earnings call, the company emphasized the benefits of edge AI, including reduced latency, lower power consumption and stronger privacy and security, positioning these attributes as structural tailwinds as workloads become more demanding. A key strategic point was Ambarella’s focus on integrating accelerated computing functions into a single system-on-chip platform, rather than relying on a collection of discrete components. Management tied that integration to a widening set of use cases, including GenAI and agentic AI at the edge, where power efficiency and tightly coupled software tools can be decisive differentiators for customers building production deployments. A major development in the first quarter was the announcement of another material long-term agreement, this time with Hanwha in South Korea. The company stated during the earnings call that the agreement has the potential to generate more than $800 million in revenues over a period exceeding 10 years and extends beyond physical security into areas such as operational automation, life sciences and robotics. Beyond the headline figure, management characterized long-term agreements as multi-generational commitments that can include structured volume and pricing over five years or more, improving revenue predictability and reducing volatility. The company also indicated that these partnerships can involve non-recurring engineering support to help fund platform development across silicon and software, aligning customer road maps with Ambarella’s broader product strategy. On a GAAP basis, gross margin was 58.4%, down from 60% in the year-ago quarter. Non-GAAP gross margin contracted 210 basis points to 59.9% in the first quarter. However, Ambarella posted a GAAP net loss of $18.1 million, narrower than the year-ago quarter’s loss of $24.3 million. On a non-GAAP basis, the company reported net profit of $5 million, 66.7% higher than the year-ago quarter’s net profit of $3 million. Cost discipline was evident relative to guidance, with non-GAAP operating expenses coming in at $56.4 million, slightly below the midpoint of management’s guidance range of $55-$58 million. Management continues to view the company’s long-term gross margin model as 59% to 62%, suggesting confidence that product mix evolution and platform leverage can support margins even as the business expands into new edge AI categories. Ambarella ended the first quarter with $277.8 million in cash, cash equivalents and marketable securities, down from $312.6 million at the end of the previous quarter as inventory levels increased to support multiple new product cycles. The company described the inventory build as a move to better service customers amid tightening supply dynamics, with days of inventory rising meaningfully during the period. During the first quarter, Ambarella used $25.6 million in cash for operational activities and ended the quarter with a negative free cash flow of $29.6 million. It repurchased shares worth $2.4 million during the quarter. Concurrent with the first-quarter results, Ambarella announced that management has approved a new share repurchase program worth $50 million. This new authorization extends through June 30, 2027 and will commence as soon as the company's existing repurchase program expires on June 30, 2026. AMBA forecasts second-quarter fiscal 2027 revenues between $105 million and $111 million. It expects automotive and IoT revenues to increase sequentially, with growth in both consumer and CapEx-driven markets. The Zacks Consensus Estimate for second-quarter revenues is pinned at $108.3 million, indicating a year-over-year rise of 13.4%. For the second quarter, the non-GAAP gross margin is anticipated in the range of 59-60.5%. Non-GAAP operating expenses are projected in the range of $56-$59 million. The consensus mark for second-quarter non-GAAP earnings per share is pinned at 17 cents. Currently, Ambarella carries a Zacks Rank #3 (Hold). FormFactor FORM, ASE Technology ASX and Diodes DIOD are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. FormFactor, ASE Technology and Diodes each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for FormFactor’s 2026 earnings has moved upward by 30.4% over the past seven days to $2.40 per share, calling for an increase of 84.6% year over year. FormFactor shares have climbed 133.5% year to date (YTD). The Zacks Consensus Estimate for ASE Technology’s full-year 2026 earnings is pegged at $1.05 per share, revised upward by 36.4 over the past 30 days and suggests a year-over-year jump of 84.2%. ASE Technology shares have soared 153.8% YTD. The Zacks Consensus Estimate for Diodes’ 2026 earnings has been revised upward by 5.3% to $2.58 per share over the past 30 days. The consensus mark for earnings indicates a year-over-year increase of 111.5%. Diodes shares have surged 122.8% YTD. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FormFactor, Inc. (FORM) : Free Stock Analysis Report Diodes Incorporated (DIOD) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Ambarella, Inc. (AMBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research