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AMBA vs NVDA

AMBA
Ambarella, Inc.
BEARISH
Price
$52.29
Market Cap
$2.25B
Sector
Technology
AI Confidence
85%
NVDA
NVIDIA Corporation
NEUTRAL
Price
$174.40
Market Cap
$4.24T
Sector
Technology
AI Confidence
40%

Valuation

P/E Ratio
AMBA
--
NVDA
35.59
Forward P/E
AMBA
48.14
NVDA
15.69
P/B Ratio
AMBA
3.8
NVDA
26.95
P/S Ratio
AMBA
5.76
NVDA
19.63
EV/EBITDA
AMBA
-30.38
NVDA
31.43

Profitability

Gross Margin
AMBA
59.97%
NVDA
71.07%
Operating Margin
AMBA
-17.07%
NVDA
65.02%
Profit Margin
AMBA
-19.42%
NVDA
55.6%
ROE
AMBA
-13.12%
NVDA
101.48%
ROA
AMBA
-6.53%
NVDA
51.19%

Growth

Revenue Growth
AMBA
20.1%
NVDA
73.2%
Earnings Growth
AMBA
--
NVDA
95.6%

Financial Health

Debt/Equity
AMBA
0.02
NVDA
0.07
Current Ratio
AMBA
2.31
NVDA
3.9
Quick Ratio
AMBA
1.98
NVDA
3.14

Dividends

Dividend Yield
AMBA
--
NVDA
0.02%
Payout Ratio
AMBA
0.0%
NVDA
0.82%

AI Verdict

AMBA BEARISH

Ambarella (AMBA) exhibits weak financial health per the Piotroski F-Score of 4/9, indicating a fragile operational foundation despite modest growth. The company trades at a high forward P/E of 48.14 and a price/sales ratio of 5.76, significantly above sector averages, suggesting overvaluation. While revenue growth is strong at 20.1% YoY and earnings surprises have been positive in recent quarters, profitability remains deeply negative with a -19.42% profit margin and negative ROE/ROA. Insider selling activity totaling $6.52M over six months signals bearish sentiment from within the company. The absence of a Graham Number and intrinsic value estimate further limits fundamental valuation clarity.

Strengths
Strong revenue growth of 20.1% YoY
Consistently positive earnings surprises in the last 4 quarters (average +77.78%)
High gross margin of 59.97% indicates pricing power and efficient production
Risks
Piotroski F-Score of 4/9 indicates weak financial health and operational instability
Negative profit margin (-19.42%) and ROE (-13.12%) suggest ongoing profitability challenges
Insider selling of $6.52M in last 6 months reflects bearish internal sentiment
NVDA NEUTRAL

NVDA shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 7/9). Key strengths include strong valuation and growth metrics. Price trades at a 20.7% premium to fair value estimate ($144.55), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (55.6% margin)
Strong financial trend (Piotroski F-Score: 7/9)
Strong revenue growth of 73.2%
Risks
High valuation with P/E of 35.6
Premium vs Graham Number ($26.71)
Price trades at a 20.7% premium to fair value estimate ($144.55), limiting near-term upside from a valuation perspective.

Compare Another Pair

AMBA vs NVDA: Head-to-Head Comparison

This page compares Ambarella, Inc. (AMBA) and NVIDIA Corporation (NVDA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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