NEW YORK (TheStreet) -- Ambarella (AMBA) - Get Ambarella, Inc. Report stock is rebounding 1.87% to $58.96 this morning after tumbling yesterday afternoon following disappointing fiscal 2016 fourth quarter revenue guidance.

However, during Ambarella's earnings conference call yesterday, the chip maker highlighted its drone business as well as its security and taser operations rather than its relationship with struggling wearable camera-maker GoPro (GPRO), TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.

Ambarella is GoPro's key chip supplier.

"Ambarella took great pains to separate itself from GoPro, which has a big inventory problem," Cramer stated. The number of days GoPro took to turn over inventory nearly doubled year-over-year to reach 122.3 during the third quarter, the Wall Street Journal reported.

GoPro stock is down 3.19% to $18.33 today after a downgrade to "neutral" from "outperform" by analysts at Robert W. Baird. Shares are down more than 25% this month.

Cramer pointed out that shares of Ambarella are rallying today as "people are starting to buy the separation."

Additionally, Ambarella posted fiscal 2016 third quarter earnings of $1.08 per share on revenue of $93.2 million after Thursday's market close. Analysts had forecast for earnings of 86 cents per share on revenue of $89.9 million for the quarter.

TheStreet Recommends

Separately, TheStreet Ratings team rates AMBARELLA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate AMBARELLA INC (AMBA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: AMBA

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