Ambarella shares rise 28% after Rosenblatt top AI pick

Shares of Ambarella, Inc. surged approximately 28% on Tuesday, June 30, following a bullish endorsement from Rosenblatt Securities, which named the semiconductor company a top technology pick for the second half of 2026. The stock continued to see elevated trading volume on Wednesday, closing at $89.59.

Rosenblatt analyst Kevin Cassidy characterized Ambarella as a "Physical AI pure play," maintaining a buy rating and a $120 price target. This implies a potential upside of roughly 79% from Monday's closing price. The firm's optimism centers on Ambarella's leadership in edge AI, where artificial intelligence computation is performed directly on devices like security cameras, robots, drones, and autonomous vehicles rather than in centralized cloud data centers.

The rally builds on strong recent performance, with the stock having climbed 74% over the preceding three months. This growth is supported by the company's financial results. Ambarella reported record fiscal 2026 revenue, with edge AI solutions comprising approximately 80% of total sales. For its first fiscal quarter of 2027, ended in late May, the company reported revenue of $100.4 million, a 16.9% year-over-year increase....