#1 - Ambarella (NASDAQ:AMBA)
The demand for chips in areas such as data centers, smartphones, and electric vehicles is likely to keep demand at above-average levels for several years. However, the semiconductor sector is notoriously cyclical. That’s what makes Ambarella (NASDAQ:AMBA) an interesting choice. The company designs components that chip makers need.
The company specifically focuses on computer vision (CV) semiconductors which in the company’s words “make cameras smarter.” The company’s chips are used in applications such as security cameras and autonomous vehicles. Demand in both categories is expected to grow significantly in the next 10-20 years.
Unlike some other companies we have on this list, Ambarella is definitely a growth play. The company looks a bit overvalued at the moment. And the risk for investors is if the economy slows to the point where the current chip shortage becomes a chip surplus.
But for now, analysts project strong revenue and earnings growth over the next five years. And analysts still have a consensus price target that suggests a 52% upside from current levels.
About Ambarella
Ambarella, Inc develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption.
Read More - Current Price
- $58.26
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $69.75 (19.7% Upside)
