🔴 AMBA is trading 16.6% down today on gross margin contraction and profit-taking

AMBA is trading 16.6% down at $76.64 following a sharp post-earnings reversal despite beating Q1 FY2027 revenue and EPS expectations.

• While results exceeded consensus, investors focused on contracted gross margins and valuation concerns following a strong rally into the print.
• The selloff suggests a reset of expectations and profit-taking, overshadowing solid sequential guidance and continued growth in the AI-auto segment.