UPDATE: Summit Insights Downgrades Ambarella (AMBA) to Hold
Summit Insights analyst Kinngai Chan downgraded Ambarella (NASDAQ: AMBA) from Buy to Hold.
The analyst comments "AMBA's October quarter outlook reflected our near-term concerns that as the supply chain eases, orders will normalize, and pushouts will happen. Additionally, we remain concerned about the ongoing weakness in the Chinese and global real estate market. We think the global real estate market's weakness could accelerate and impact AMBA's core IoT business. While we still believe the industry adoption of AMBA's higher ASP CV-based SoC in the automotive market will benefit AMBA in the longer term, we now expect the current near-term headwinds may linger longer than expected. We are downgrading AMBA to reflect the near-term risk for its core IoT business. While we are confident that AMBA can outperform its IoT peer groups once its customers' adoption of its higher ASP CV-based SoCs accelerates, we cannot accurately predict this event's timing."
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Shares of Ambarella closed at $84.50 yesterday.