Ambarella likely a takeover candidate amid share plunge - analyst
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Ambarella (NASDAQ:AMBA) is likely a takeover target as its shares plunged 19% on Wednesday after reporting its Q2 earnings and Q3 outlook.
"Beyond the current and deepening inventory correction, we view an acquisition as the best outcome leveraging Ambarella's full architecture potential," Baird analyst Tristan Gerra, who has an outperform rating and cut the AMBA price target to $70 from $120, wrote in a note on Wednesday.
Advanced Micro Devices (AMD) is a good fit for Ambarella (AMBA), according to Gerra.
"Ambarella could meet its full architecture potential as part of a larger company providing customer breadth and software platforms," Gerra wrote.

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