On Monday, Rosenblatt Securities reaffirmed its positive stance on Ambarella stock (NASDAQ:AMBA), maintaining a Buy rating and a price target of $100.00. Trading at $74.61, the stock sits well above its 52-week low of $39.69, with InvestingPro data showing 10 analysts recently revising their earnings estimates upward for the upcoming period. The firm's analyst, Kevin Cassidy, highlighted the potential impact of DeepSeek's advancements in Large Language Models (LLMs) on the acceleration of network edge AI applications.
Cassidy pointed out that the market is currently intrigued by DeepSeek, a China-based company that has reportedly developed a competitive LLM which operates at a lower cost and with less dependency on the leading-edge GPU technology from Nvidia (NASDAQ:NVDA). Although details regarding the exact cost and the specific GPUs used by DeepSeek are not clear, the development is seen as a significant step towards broadening the use of AI applications at the network edge.
