Ambarella Inc shares rose 9.06% to $93.57 on Wednesday, driven by a bullish note from Rosenblatt Securities analyst Kevin Cassidy, who named the fabless semiconductor company his top pick for the second half of 2026. Cassidy issued a buy rating with a $120 price target, describing Ambarella as a "physical AI pure play" driven by demand for low-power AI vision processors in surveillance cameras, autonomous vehicles, drones, and robotics. The stock is pressing toward the top of its 52-week range, with key resistance identified at $96.50 and support at $74.50.

Analyst Outlook and Recent Performance

Cassidy noted that the stock's pullback since its May 28 earnings report presents a "buying opportunity." In late May, Ambarella reported first-quarter results that exceeded analyst expectations, with earnings per share of $0.11 against a consensus forecast of $0.01. Revenue of $100.36 million edged past projections by 0.20%. Following the results, Rosenblatt raised its price target to $120 from $115, citing rising demand for AI models at the network edge boosting Ambarella's computer vision system-on-chip platforms.

Trading Metrics and Technical Analysis

Ambarella has a market capitalization of $3.76 billion and has traded between a 52-week high of $96.69 and a 52-week low of $48.30. The stock is stretched above its major trend gauges—about 34% above the 20-day SMA ($69.21) and about 29% above the 200-day SMA ($71.66). The Relative Strength Index (RSI) stands at 63.76, and it has gained 33.15% over the past 12 months. The Moving Average Convergence Divergence (MACD) is above its signal line with a positive histogram, suggesting buyers are gaining control.