Ashraf Eassa
Long/short equity, contrarian, independent research, tech

With Worst Case Scenario Nearly Priced In, Ambarella Has 34% Upside Potential

Shares of Ambarella (AMBA) have become somewhat of a battleground, particularly as the short interest has continued to climb in the face of a stock price that - at its 2013 peak - tripled from its (poorly timed) October 2012 IPO. Put succinctly, Ambarella is a small-cap fabless semiconductor firm that develops HD video compression and image processing semiconductors. These products are used in a number of applications such as security IP-cameras, wearable sports cameras, digital still cameras, automotive video recorders, and even in TV broadcasting infrastructure systems.

A very interesting piece of research was recently released in which the author noted that channel checks with Ambarella's end customers suggested that while the company was likely to come...

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