IBD Stock Analysis
- Shares rebound from pullback to 21-day exponential moving average
- Stock had retreated after hitting new high of 169.28 on Sept. 23
- Relative Strength Rating is 96 out of 99; stock is tops in industry group
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:38PM EDT on
On the stock market today, AMBA stock rose 5.6% to close at 158.65.
AMBA stock rebounded Thursday from a pullback to its 21-day exponential moving average line. Investors could use this as a chance to buy some shares, keeping in mind the market is technically still in a correction. Ambarella had retreated after notching an all-time high 169.28 on Sept. 23.
Investors could have picked up shares on Sept. 9 as it decisively broke out of a cup base at a buy point of 137.31, according to IBD MarketSmith charts. AMBA stock had flirted with that buy point in the four days prior but couldn’t close above it.
AMBA Stock Scores Automotive Wins
The Santa Clara, Calif.-based company today gets most of its revenue from chips for security and surveillance camera systems. But it has started to provide computer-vision chips for advanced driver-assistance systems and autonomous vehicles. It already makes chips for dashcams and driver-monitoring systems.
Ambarella specializes in video-processing chips infused with artificial intelligence so that AI processing can be done in the camera instead of on a remote server.
This year, Ambarella has announced a host of design wins from fleet management companies and automakers.
In March, Motional, a global leader in driverless technology, selected Ambarella’s CVflow family of AI processors for its driverless vehicles. Ride-hailing service Lyft (LYFT) is working with Motional to launch a multimarket robotaxi service in major U.S. cities, beginning in 2023.
In August, Yandex (YNDX) announced that it will deploy Ambarella-based driver-monitoring cameras in its fleet of ride-hailing vehicles by 2022. Yandex also will offer its camera to delivery van fleets.
Also in August, KeepTruckin, a fleet management technology firm, announced that it will use Ambarella chips for AI-enabled dashcams.
Other Ambarella customers include electric-vehicle maker Arrival (ARVL) and China-based automakers Great Wall Motors and Dongfeng Motor Group.
Ambarella Tops In Industry Group
AMBA stock is tied for first place among 29 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It is one of six stocks in the group with a best-possible IBD Composite Rating of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
The fabless semiconductor group ranks a lofty seventh out of 197 industry groups that IBD tracks. Three months ago, it ranked No. 45. And six months ago, it ranked No. 137. Growth stock investors should focus on the leading stocks in the top 40 industry groups.
AMBA stock has an IBD Relative Strength Rating of 96 out of 99. That means it has outperformed 96% of stocks over the past 12 months.
Also, AMBA stock has a best-possible IBD Accumulation/Distribution Rating of A+. That indicates heavy institutional buying of Ambarella stock.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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