Ambarella plunges 30% on supply issues, but Baird says fundamentals 'intact'
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Ambarella (NASDAQ:AMBA) shares plunged on Tuesday after the semiconductor company issued underwhelming guidance, though investment firm Baird said the company's fundamentals were still intact.
Analyst Tristan Gerra reiterated the firm's $200 price target and outperform rating on Ambarella (AMBA), noting that supply issues from Samsung (OTC:SSNLF), along with difficult comparisons and "some inventory rebalancing" from some of its customers should lead to two more quarters of "flattish revenue." 
However, there should be a "significant rebound" in the second-half, due in part to the ramp of CV5 and "strong automotive-related revenue momentum."
"Attractive entry point opportunity at current levels as near-term uncertainties will pave way to significant revenue recovery in [the second-half]," Gerra wrote in a note to clients.
Ambarella (AMBA) shares were down 31% to $96.40 on heavy volume on Tuesday.
In addition, Gerra noted that the company's first-quarter guidance, with sales expected to be between $88.5 million and $91.5 million was in line with the firm's estimate, even if it was below the $90.9 million that Wall Street analysts were expecting. 
Last month, Wells Fargo said Ambarella (AMBA), along with NXP Semiconductors (NASDAQ:NXPI), Skyworks Solutions (NASDAQ:SWKS)
and a number of other semiconductor stocks could outperform the broader industry as chip inventory levels rise later this year.