By Sam Boughedda
Investing.com — Shares of fabless semiconductor design company Ambarella Inc (NASDAQ:AMBA) rose more than 14% Tuesday, adding to its gains for the year, which has seen its stock price more than double.
The company has seen its shares continue to rally since its second quarter earnings report at the start of September, which resulted in numerous analysts increasing price targets and upgrading the stock.
Today's move follows another price target increase from Stifel. Analyst Tore Svanberg increased the price target on Ambarella shares to $215 from $200, keeping a buy rating on the stock.
The analyst cited what he sees as a read-through from Intel (NASDAQ:INTC) announcing its intention to list Mobileye (F:0ME) as a public company, with headlines indicating its value at $50 billion or more. The analyst believes that given Ambarella's auto business has higher growth and an expanding opportunity funnel, investors are likely to re-assess Ambarella's current share price. In addition, its auto segment is also one of Mobileye's closest competitors in the semiconductor market.