Ambarella's Record Revenue Growth and Raised 2026 Guidance: Undervalued or Overpriced?

Ambarella's (AMBA) Q3 revenue rose 31% YoY, and the company raised its 2026 revenue growth guidance to record levels. Despite this, the shares have experienced notable volatility, dropping over 18% in a single day and nearly 15% over the past week. Analyst forecasts suggest Ambarella could be undervalued, but its price-to-sales ratio is higher than the industry average and peers, implying potential pressure if the market shifts towards more typical pricing.