AMBANEUTRAL

Gross Margin

59.1%

Higher than 47% of Technology sector peers

Updated 622h ago

Sector Performance

47th percentile

AMBA

59.1%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

For a non-expert investor, gross margin is the percentage of revenue left after subtracting the direct costs of making a product—so 59.1% means Ambarella keeps about 59 cents of every dollar of sales after covering production costs.

Among technology sector peers, this is below the sector median of 62.2%, landing Ambarella in the 48th percentile, meaning it is slightly less profitable on a per-sale basis than the typical peer. The trend data is unavailable: year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all marked as N/A, so no trend analysis can be performed. The combination of a gross margin that is modestly below the sector median and a complete lack of trend history offers no clear signal for investment risk or opportunity—both the level and the unknown direction create ambiguity. This metric supports the overall NEUTRAL verdict because the margin is close enough to the median that it neither stands out as a weakness nor a strength, and without trend information, it cannot shift the balanced view.

Frequently Asked Questions

What does the Gross Margin tell investors about AMBA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AMBA's Gross Margin compare to its sector?

AMBA's Gross Margin of 59.1% compares to a Technology sector median of 65.2%, placing it in the 47th percentile.

Who are AMBA's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.