We recently published a list of 10 Unstoppable Tech Stocks to Buy Right Now. In this article, we are going to take a look at where Ambarella, Inc. (NASDAQ:AMBA) stands against other unstoppable tech stocks to buy right now.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide, with the integration of AI and ML revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations around the globe are undergoing digital transformation to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
With substantial growth potential, the technology sector has consistently outperformed other sectors. In 2024, the S&P 500 Information Technology Sector Index rose by approximately 37%, outpacing the broader S&P 500 Index by an impressive 11.5%. This performance has led to skyrocketing market capitalizations for tech sector companies, prompting caution regarding high valuations. Following the market downturn triggered by DeepSeek’s emergence, JJ Kinahan, CEO of IG North America, stated in an interview with BNN Bloomberg that while the market had reached incredibly high levels, macroeconomic concerns such as inflation and high interest rates persist. He also suggests that developments related to DeepSeek provided an excuse for profit-taking with a ‘reset’ occurring in tech stocks. Now the focus should shift to earnings and the actual benefits derived from those substantial investments.
On a positive note, in his report on December 13, Adam Benjamin, Sector Portfolio Manager at Fidelity Investments, highlighted that the sector benefited in 2024 from outstanding results in the semiconductor industry, reflecting major corporate investments in AI infrastructure. He remains optimistic for 2025, as evident from his positive outlook:
“The outlook for the sector in 2025 and beyond may be bright, as tech companies continue to innovate and digitization and automation become increasingly important in our lives. I believe the next phase of development could present opportunities for software firms, as the application layer begins to roll out generative AI agents across end markets, and as the full benefits of AI begin to be realized. Progress may not be linear, though, and investors must be mindful of stock valuations and the timing and potential impact of further technological advances in the field, as well as the broader macroeconomic environment.”
Our Methodology
To identify the 10 best unstoppable stocks, we conducted extensive research to compile a list of fundamentally strong U.S.-listed companies that performed well in 2024 and are expected to continue their success in 2025. Our focus included technology companies with a market capitalization of $2 billion and above. We screened our coverage based on the following criteria: 1. Stock price should have outperformed the S&P 500 Index in 2024 (+22% rise in share price); 2. must have reported positive revenue growth over the last 5 years; 3. EPS growth for the next year is expected to be over 25%; 4. It should have a potential upside of at least 10%. Ultimately, the stocks were ranked in ascending order of their hedge fund sentiment as per Insider Monkey’s database of 900 hedge funds, as of Q3 2024.
Note: All pricing data is as of market close on January 28.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Ambarella Inc. (AMBA) the Unstoppable Tech Stock to Buy Right Now?
A scientist in a lab coat and goggles operating a state-of-the-art semiconductor production line.
Ambarella Inc. (NASDAQ:AMBA) specializes in developing low-power system-on-a-chip (SoC) semiconductors and software for edge AI applications. Its products enable features such as person detection, object classification, and analytics, along with performing complex data analysis in real-time, delivering high-quality imagery. These features are used in various human viewing and computer vision applications, including automotive camera systems, video security cameras, mobile and fixed robots, industrial applications, drones, and other consumer devices.
The company focuses on the automotive and Internet-of-Things (IoT) end markets. Ambarella Inc. (NASDAQ:AMBA)’s competitive advantage lies in its specialized SoCs that offer high-quality video and image processing with low power consumption, making them ideal for edge AI applications. The company reported strong Q3 2025 (October quarter) results with revenue increasing by 30% sequentially in both the auto and IoT segments. Despite overall market weakness, the ramp-up of customers’ new products, especially those featuring its new higher-priced AI inference processors like CV5, supported top-line growth. During the results call, President and CEO Dr. Fermi Wang stated:
“We believe the significant and continued build-out of AI training and inference capacity in data centers for increasingly advanced AI networks is a leading indicator for the secular growth opportunity we see for AI inference processing at the edge. Our strategic plan aligns well with this, and the first wave of new AI product revenue is underway. We expect the second wave to commence alongside the first wave next year, with a subsequent wave starting in calendar 2026 or our fiscal 2027, including the CV3 and our 2-nanometer platforms.”
Overall, AMBA ranks 8th on our list of unstoppable tech stocks to buy right now. While we acknowledge the potential of AMBA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMBA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
