In today’s rapidly evolving tech landscape, Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS) stand out as two innovative players within overlapping sectors. While Ambarella focuses on semiconductor solutions for high-definition video processing, MicroVision specializes in lidar sensors for automotive safety and augmented reality applications. This comparison aims to highlight their unique approaches to innovation and market positioning. I invite you to join me as we determine which of these companies presents a more compelling investment opportunity.
Table of contents
Company Overview
Ambarella, Inc. Overview
Ambarella, Inc. (ticker: AMBA) focuses on developing advanced semiconductor solutions that enhance video processing capabilities across a variety of applications. Founded in 2004 and headquartered in Santa Clara, California, Ambarella specializes in high-definition (HD) and ultra HD video compression, image processing, and artificial intelligence for deep learning applications. Its technology is utilized in automotive cameras, security systems, and consumer electronics, catering to original equipment manufacturers (OEMs) and original design manufacturers (ODMs). With a market capitalization of approximately $3.17B, Ambarella has positioned itself as a leader in the semiconductor space, emphasizing low power consumption and high-quality output.
MicroVision, Inc. Overview
MicroVision, Inc. (ticker: MVIS), established in 1993 and based in Redmond, Washington, specializes in lidar sensors and micro-display technologies for automotive safety and augmented reality applications. The company’s innovative laser beam scanning technology supports a range of products from lidar for autonomous driving to interactive display modules for smart devices. With a market cap of around $287M, MicroVision targets OEMs and ODMs, leveraging its expertise in micro-electrical mechanical systems and software to deliver cutting-edge solutions in the hardware and equipment sector.
Key similarities and differences
Both Ambarella and MicroVision operate within the technology sector, focusing on advanced semiconductor solutions. However, while Ambarella concentrates on video processing technologies for automotive and consumer applications, MicroVision specializes in lidar and display technologies for safety and augmented reality. This distinction highlights their respective market niches and product offerings, with Ambarella leaning more towards video-centric applications and MicroVision focusing on sensing and display innovations.
Income Statement Comparison
The following table compares the most recent income statements of Ambarella, Inc. and MicroVision, Inc., highlighting key financial metrics.
| Metric | Ambarella, Inc. | MicroVision, Inc. |
|---|---|---|
| Market Cap | 3.17B | 287.50M |
| Revenue | 284.87M | 4.70M |
| EBITDA | -100.54M | -70.98M |
| EBIT | -126.60M | -75.20M |
| Net Income | -117.13M | -96.92M |
| EPS | -2.84 | -0.46 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Ambarella’s revenue of 284.87M represents a rebound compared to previous periods, though it still incurs significant losses, with a net income of -117.13M. MicroVision, on the other hand, continues to struggle, reporting a modest revenue of 4.70M and a net loss of -96.92M. Both companies exhibit negative EBITDA, reflecting ongoing operational challenges. Ambarella’s revenue growth indicates potential recovery, while MicroVision’s stagnation raises concerns about its market viability. Overall, both companies require careful assessment for potential investment due to their financial instability and significant losses.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent financial ratios for Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS). This table will help you assess their financial health and operational efficiency.
| Metric | AMBA | MVIS |
|---|---|---|
| ROE | -20.86% | -198.72% |
| ROIC | -21.96% | -83.29% |
| P/E | -27.05 | -2.83 |
| P/B | 5.64 | 5.63 |
| Current Ratio | 2.65 | 1.79 |
| Quick Ratio | 2.36 | 1.74 |
| D/E | 0.01 | 1.06 |
| Debt-to-Assets | 0.01 | 0.43 |
| Interest Coverage | 0.00 | -19.19 |
| Asset Turnover | 0.41 | 0.04 |
| Fixed Asset Turnover | 19.96 | 0.20 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios indicate that both companies face significant challenges. Ambarella shows decent liquidity with a current ratio of 2.65 but struggles with profitability, evident from its negative ROE and ROIC. MicroVision, on the other hand, exhibits severe financial distress, highlighted by its extremely negative ROE and a high debt-to-equity ratio of 1.06, indicating a heavy reliance on debt. Investors should approach both stocks with caution, weighing the risks associated with their current financial standings.
Dividend and Shareholder Returns
Neither Ambarella, Inc. (AMBA) nor MicroVision, Inc. (MVIS) currently pays dividends, reflecting a strategy focused on reinvestment and growth rather than shareholder distributions. AMBA, with a negative net income margin (-41.12%), opts for capital allocation towards R&D and technological advancements. MVIS also showcases negative profitability, indicating a high-growth phase. Both companies engage in share buybacks, which can enhance shareholder value. However, their lack of dividends may pose risks if growth fails to materialize, potentially impacting long-term value creation.
Strategic Positioning
Ambarella, Inc. (AMBA) commands a strong market presence in the semiconductor space, particularly in high-definition video processing and AI applications for automotive and security sectors, supported by a market cap of 3.17B. Meanwhile, MicroVision, Inc. (MVIS) is carving out niche applications in lidar technology for automotive safety and AR devices, but it faces significant competitive pressure with a smaller market cap of 288M. Both companies must navigate rapid technological advancements that could disrupt their current offerings.
Stock Comparison
Over the past year, we have witnessed significant price movements and trading dynamics for both Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS). These shifts provide valuable insights into each company’s market performance.
Trend Analysis
Ambarella, Inc. (AMBA) has experienced a 34.7% increase in stock price over the past year. This indicates a bullish trend, although the acceleration status shows a deceleration in growth. The stock’s price fluctuated between a high of 89.67 and a low of 40.99, with a standard deviation of 12.68, highlighting moderate volatility. In the recent period, AMBA saw a decline of 7.7% from September 14, 2025, to November 30, 2025, with a lower standard deviation of 4.82, suggesting reduced volatility during this timeframe.
MicroVision, Inc. (MVIS), on the other hand, has faced a significant decline, with a 64.59% drop in stock price over the past year, categorizing it under a bearish trend. The stock has ranged from a high of 2.66 to a low of 0.82, with a standard deviation of 0.42, indicating low volatility. In the recent period, MVIS recorded a further decrease of 17.38% from September 14, 2025, to November 30, 2025, coupled with a minimal standard deviation of 0.15, reinforcing the bearish outlook.
In summary, AMBA shows a bullish long-term trend despite recent declines, while MVIS continues to struggle with a negative trajectory. Careful consideration of these trends is crucial for making informed investment decisions.
Analyst Opinions
Recent analyst ratings suggest a cautious approach towards Ambarella, Inc. (AMBA), which has received a “C” rating, indicating a hold recommendation. Analysts highlight concerns over low return metrics despite a decent debt-to-equity ratio. In contrast, MicroVision, Inc. (MVIS) has a weaker “D+” rating, with analysts arguing for a sell position due to poor performance across key financial metrics. Overall, the consensus for AMBA is to hold, while MVIS leans towards a sell for the current year.
Stock Grades
I have reviewed the latest stock grades from verified grading companies for two companies: Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS).
Ambarella, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | maintain | Buy | 2025-11-26 |
| Rosenblatt | maintain | Buy | 2025-11-26 |
| Needham | maintain | Buy | 2025-11-26 |
| B of A Securities | maintain | Neutral | 2025-11-26 |
| Rosenblatt | maintain | Buy | 2025-11-24 |
| Morgan Stanley | maintain | Overweight | 2025-08-29 |
| B of A Securities | maintain | Neutral | 2025-08-29 |
| Stifel | maintain | Buy | 2025-08-29 |
| Rosenblatt | maintain | Buy | 2025-08-29 |
| Needham | maintain | Buy | 2025-08-29 |
MicroVision, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| D. Boral Capital | maintain | Buy | 2025-11-12 |
| WestPark Capital | maintain | Buy | 2025-10-21 |
| WestPark Capital | maintain | Buy | 2025-09-05 |
| D. Boral Capital | maintain | Buy | 2025-09-02 |
| WestPark Capital | maintain | Buy | 2025-08-27 |
| D. Boral Capital | maintain | Buy | 2025-08-11 |
| D. Boral Capital | maintain | Buy | 2025-05-21 |
| D. Boral Capital | maintain | Buy | 2025-05-13 |
| WestPark Capital | maintain | Buy | 2025-03-27 |
| D. Boral Capital | maintain | Buy | 2025-03-25 |
Overall, both companies maintain a strong “Buy” rating from multiple reliable grading companies, indicating positive investor sentiment and stable performance. However, Ambarella also received a “Neutral” grade from B of A Securities, suggesting a cautionary note that investors should consider while making decisions.
Target Prices
The current consensus target prices for the selected companies indicate varying levels of optimism among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Ambarella, Inc. | 115 | 80 | 97.5 |
| MicroVision, Inc. | 5 | 5 | 5 |
For Ambarella, Inc. (AMBA), analysts expect a significant upside potential compared to its current price of 74.18, suggesting confidence in the company’s growth. In contrast, MicroVision, Inc. (MVIS) shows a flat consensus target of 5, closely aligning with its current price of 0.94, indicating limited growth expectations.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS) based on their recent financial performance and market position.
| Criterion | Ambarella, Inc. (AMBA) | MicroVision, Inc. (MVIS) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Negative margins | Negative margins |
| Innovation | Strong in AI and video tech | Innovative lidar tech |
| Global presence | Established in automotive | Limited global outreach |
| Market Share | Niche market | Emerging market |
| Debt level | Low (0.76%) | High (42.62%) |
Key takeaways: Ambarella shows strength in innovation and low debt levels, while MicroVision struggles with high debt and profitability. Understanding these factors is crucial for making informed investment decisions.
Risk Analysis
The following table outlines the key risks associated with Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS) as of their most recent fiscal years.
| Metric | Ambarella, Inc. (AMBA) | MicroVision, Inc. (MVIS) |
|---|---|---|
| Market Risk | High | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | Very High |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | Low | Moderate |
In summary, both companies face significant market and operational risks, with MicroVision exhibiting higher operational risk due to its ongoing development challenges and regulatory scrutiny. Ambarella’s reliance on semiconductor technology also exposes it to market volatility. As a potential investor, understanding these risks is crucial for making informed decisions.
Which one to choose?
When comparing Ambarella, Inc. (AMBA) and MicroVision, Inc. (MVIS), the fundamentals and market performance reveal a significant disparity. AMBA boasts a market cap of 3.17B and a bullish trend with a 34.7% increase over the past year, although it faces challenges with a net profit margin of -41.1%. In contrast, MVIS presents a market cap of 274M but is experiencing a bearish trend with a staggering 64.6% decline, coupled with a net profit margin of -20.6%.
Analyst ratings also reflect this difference, with AMBA rated a C and MVIS a D+. Investors focused on growth may prefer AMBA for its potential recovery and bullish trend, while those prioritizing speculative opportunities with higher risks might consider MVIS, albeit with caution due to its significant downturn.
Specific risks for both companies include competitive pressures and market dependence, which could impact their profitability and growth trajectories.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Ambarella, Inc. and MicroVision, Inc. to enhance your investment decisions:
