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AMBA vs TSEM
Which Stock Would AI Choose? Ambarella (AMBA) vs. Tower Semiconductor (TSEM) Stock Comparison
Key Takeaways
- AMBA specializes in edge AI semiconductors, showing strong recent momentum with approximately 40% gains over the past month amid AI demand, though YTD returns lag at 7.71%.
- TSEM, a foundry for analog and mixed-signal chips, boasts superior YTD performance of 74.87% and 1-year returns over 486%, driven by AI infrastructure and photonics expansions.
- Both operate in the semiconductor sector but differ in models: AMBA as fabless designer, TSEM as manufacturer, exposing them to distinct growth drivers like edge AI versus silicon photonics (SiPho).
- TSEM reports profitability with recent quarterly revenue of $440 million (up 14% YoY), while AMBA grows revenue 37% in FY2026 but posts net losses.
- Market caps reflect scale: TSEM at $25.1 billion versus AMBA's $3.34 billion, with TSEM showing greater stability.
- Tickeron's AI tools highlight semiconductor sector strength, favoring momentum plays in current conditions.
Introduction
Ambarella (AMBA) and Tower Semiconductor (TSEM) represent distinct niches within the semiconductor industry, both capitalizing on AI-driven demand. AMBA focuses on fabless edge AI chips for vision and automation, while TSEM operates as a foundry specializing in analog, RF, and photonics technologies. This stock comparison analyzes their recent market positioning, performance, and relative strengths in the context of surging AI infrastructure needs. Traders seeking high-growth plays in edge computing or photonics, and investors eyeing semiconductor relative performance, will find insights into momentum, risks, and sector tailwinds here.
AMBA Overview and Recent Performance
Ambarella, Inc. (AMBA) designs low-power system-on-a-chip (SoC) semiconductors and software for edge artificial intelligence (AI) applications, including automotive cameras, IoT devices, and security systems. The company's CVflow architecture powers on-device AI processing for video, imaging, and neural tasks. In recent market activity, AMBA shares have exhibited sharp rebounds, with roughly 40% gains over the past 30 days and positive 1-year returns of 44.40%, trading around $76.30 with a $3.34 billion market cap. Fiscal 2026 revenue hit a record $390.7 million, up 37% year-over-year, driven by edge AI comprising 80% of sales and growth in automotive and IoT segments. Sentiment has improved on reaffirmed FY2027 guidance of 10-15% revenue expansion and new product cycles, though ongoing net losses of $75.9 million temper enthusiasm amid high R&D (research and development) costs and competition in AI vision processing.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. (TSEM) is an independent foundry offering customizable process platforms like SiGe (silicon-germanium), BiCMOS (bipolar complementary metal-oxide-semiconductor), RF CMOS, and silicon photonics for integrated circuits in consumer, automotive, industrial, and aerospace markets. Recent quarters highlight robust execution, with Q4 2025 revenue of $440 million (up 14% YoY and 11% sequentially) and full-year sales of $1.566 billion, alongside $80 million net profit (18% margin). Shares trade near $211 with a $25.1 billion market cap, delivering YTD returns of 74.87% and 1-year gains exceeding 486%. Performance reflects AI tailwinds in photonics for data centers and defense applications, including ramps with partners like Axiro for radar ICs and NVIDIA-aligned 1.6T modules. Positive analyst revisions and capacity expansions bolster sentiment, though geopolitical risks in Israel add volatility.
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Head-to-Head Comparison
AMBA and TSEM both thrive in AI semiconductors but contrast sharply in business models: fabless design for AMBA emphasizes edge AI innovation, while TSEM's foundry model leverages manufacturing scale in analog/mixed-signal and photonics. Growth drivers differ—AMBA via automotive/IoT AI (80% revenue share, 50% segment growth), TSEM through data center SiPho and RF for defense/telecom. Recent momentum favors TSEM with explosive multi-year returns versus AMBA's rebounding but volatile path. Risk factors include AMBA's losses and customer concentration, versus TSEM's geopolitical exposure and capex intensity. Sector overlap in semis exposes both to cyclicality, but TSEM shows stronger profitability and market sentiment.
Tickeron AI Verdict
Tickeron’s AI currently favors TSEM due to superior trend consistency, with 74.87% YTD and over 486% 1-year returns reflecting stable profitability and AI photonics catalysts. AMBA offers rebound potential from edge AI momentum, but TSEM's larger scale, positive margins, and relative positioning suggest higher probability of outperformance in prevailing semiconductor uptrends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AMBA is a Hold and TSEM is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AMBA’s FA Score shows that 1 FA rating(s) are green whileTSEM’s FA Score has 2 green FA rating(s).
- AMBA’s FA Score: 1 green, 4 red.
- TSEM’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AMBA’s TA Score shows that 5 TA indicator(s) are bullish while TSEM’s TA Score has 4 bullish TA indicator(s).
- AMBA’s TA Score: 5 bullish, 4 bearish.
- TSEM’s TA Score: 4 bullish, 4 bearish.
Price Growth
AMBA (@Electronic Production Equipment) experienced а +6.37% price change this week, while TSEM (@Semiconductors) price change was +29.84% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.97%. For the same industry, the average monthly price growth was +20.42%, and the average quarterly price growth was +140.48%.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.47%. For the same industry, the average monthly price growth was +39.39%, and the average quarterly price growth was +81.10%.
Reported Earning Dates
AMBA is expected to report earnings on May 28, 2026.
TSEM is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.97% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
@Semiconductors (+4.47% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| AMBA | TSEM | AMBA / TSEM | |
| Capitalization | 3.55B | 31.5B | 11% |
| EBITDA | -56.94M | 507M | -11% |
| Gain YTD | 14.568 | 133.333 | 11% |
| P/E Ratio | N/A | 126.84 | - |
| Revenue | 391M | 1.51B | 26% |
| Total Cash | 313M | 1.22B | 26% |
| Total Debt | 13.4M | 164M | 8% |
AMBA | TSEM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 42 | 77 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 2 | |
SMR RATING 1..100 | 94 | 78 | |
PRICE GROWTH RATING 1..100 | 40 | 34 | |
P/E GROWTH RATING 1..100 | 2 | 2 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
AMBA's Valuation (88) in the Semiconductors industry is in the same range as TSEM (89). This means that AMBA’s stock grew similarly to TSEM’s over the last 12 months.
TSEM's Profit vs Risk Rating (2) in the Semiconductors industry is significantly better than the same rating for AMBA (100). This means that TSEM’s stock grew significantly faster than AMBA’s over the last 12 months.
TSEM's SMR Rating (78) in the Semiconductors industry is in the same range as AMBA (94). This means that TSEM’s stock grew similarly to AMBA’s over the last 12 months.
TSEM's Price Growth Rating (34) in the Semiconductors industry is in the same range as AMBA (40). This means that TSEM’s stock grew similarly to AMBA’s over the last 12 months.
TSEM's P/E Growth Rating (2) in the Semiconductors industry is in the same range as AMBA (2). This means that TSEM’s stock grew similarly to AMBA’s over the last 12 months.
| AMBA | TSEM | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 86% | 3 days ago 61% |
| Stochastic ODDS (%) | 5 days ago 84% | 3 days ago 61% |
| Momentum ODDS (%) | 6 days ago 81% | 3 days ago 70% |
| MACD ODDS (%) | N/A | 3 days ago 70% |
| TrendWeek ODDS (%) | 3 days ago 78% | 3 days ago 71% |
| TrendMonth ODDS (%) | 3 days ago 79% | 3 days ago 76% |
| Advances ODDS (%) | 7 days ago 75% | 4 days ago 69% |
| Declines ODDS (%) | 20 days ago 80% | 11 days ago 60% |
| BollingerBands ODDS (%) | 3 days ago 80% | 3 days ago 62% |
| Aroon ODDS (%) | 3 days ago 82% | 3 days ago 77% |
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AMBA and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMBA has been closely correlated with ADI. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if AMBA jumps, then ADI could also see price increases.
| Ticker / NAME | Correlation To AMBA | 1D Price Change % | ||
|---|---|---|---|---|
| AMBA | 100% | +0.15% | ||
| ADI - AMBA | 68% Closely correlated | -2.18% | ||
| RMBS - AMBA | 68% Closely correlated | -2.61% | ||
| NXPI - AMBA | 65% Loosely correlated | -0.91% | ||
| MTSI - AMBA | 65% Loosely correlated | -2.08% | ||
| SLAB - AMBA | 65% Loosely correlated | -0.33% | ||
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TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with AMKR. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then AMKR could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | -2.39% | ||
| AMKR - TSEM | 61% Loosely correlated | -2.41% | ||
| AMBA - TSEM | 60% Loosely correlated | +0.15% | ||
| KLIC - TSEM | 60% Loosely correlated | -1.97% | ||
| KLAC - TSEM | 60% Loosely correlated | -4.68% | ||
| LRCX - TSEM | 60% Loosely correlated | -4.82% | ||
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