Northland analyst Gus Richard reiterated an Outperform rating and $101.00 price target on Ambarella (NASDAQ: AMBA) on AI potential.

The analyst commented, "We believe that AI costs and data privacy concerns are driving enterprises to shift some AI workloads to on-premises. In enterprise environments, there is a wide range of performance requirements across performance, power, and cost. One size does not fit all. AMBA occupies a unique position within this spectrum of requirements, which likely drives the adoption of its products. This is demonstrated by the two 2nm ASIC development agreements it signed over the last year."

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Shares of Ambarella closed at $67.12 yesterday.