Investing.com — Shares of Ambarella Inc (NASDAQ:AMBA) declined more than 13% Wednesday despite the announcement of its new Artificial Intelligence Image Signal Processor and positive analyst commentary on the stock.
The company’s signal processor is being showcased at its invitation-only event during CES 2022 in Las Vegas this week — it runs on its CV2 edge AI perception systems on chip (SoCs).
Elsewhere, analysts at Deutsche Bank, Stifel, and Wells Fargo increased their stock price targets for Ambarella.
Deutsche Bank (DE:DBKGn)’s Ross Seymore raised the firm’s price target to $175 from $155, telling investors that the company’s 2022 analyst meeting detailed a “compelling technological CV-focused roadmap.” The analyst currently has a Hold rating on Ambarella.
Stifel’s Tore Svanberg increased the price target on Ambarella to $230 from $215, keeping a buy rating. Svanberg said the company’s pathway to $1 billion in revenues is “shored by large and growing” available markets.
At Wells Fargo (NYSE:WFC), Gary Mobley said that for the first time, Ambarella’s management articulated a path to $1 billion in annual revenue, while there was also additional design wins with Rivian.
Meanwhile, Morgan Stanley analyst Joseph Moore reiterated an overweight rating and $229 price target. However, the analyst said, “the most tangible data point was the company pointing to 45% of revenues next year coming from computer vision, up from 25% this year – implying over 100% growth in computer vision given overall growth expectations, coming earlier than our estimates.”