Ambarella, Inc. (NASDAQ:AMBA) is one of the Jim Cramer’s Hottest Robotics and Physical AI Stock Picks.

Ambarella, Inc. (NASDAQ:AMBA) is a semiconductor company that provides chips that are used in devices such as robots and autonomous vehicles. Its shares are flat over the past year and down by 40% since Cramer discussed them in September. One notable dip in Ambarella, Inc. (NASDAQ:AMBA)’s shares came on November 26th when they closed 18.8% lower. On the 26th, the firm reported its third-quarter earnings and posted $106.5 million in revenue and $0.27 in earnings per share. The results beat analyst estimates of $104 million and $0.21. Additionally, the results also showed that Ambarella, Inc. (NASDAQ:AMBA)’s gross margin dropped by one percentage point to 59.6%. Earlier this year, on January 6th, the shares closed 4.6% higher after the firm announced its CV7 Edge AI chip. They also closed 14.9% lower on February 27th, soon after Ambarella, Inc. (NASDAQ:AMBA)’s fourth quarter earnings. Here’s what Cramer had said about the firm in September 2025:

“You know, it’s been around for a long time. It’s finally make, getting there, but I think it reflects all the good news already. I’m going to have to say no to that one.”

While we acknowledge the potential of AMBA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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