Ambarella (AMBA) Stock Rebounding After Jim Cramer Sides With Bulls

NEW YORK (TheStreet) -- Shares of Ambarella Inc  (AMBA) were soaring 8.33% to $102.22 on heavy volume in mid-morning trading Tuesday, reversing losses from the prior two trading sessions after TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio sided with the bulls on CNBC's Mad Money show Monday night.

Cramer said the video-capture chipmaker is one of only a handful of companies with accelerating revenue growth. 

He believes Ambarella is a semiconductor stock that deserves its premium valuation, given its expected 55% revenue growth in 2016.

Last Friday, short-selling firm Citron Research published a report calling Ambarella's share price "ridiculous."

Ambarella's "parabolic frenzy has now launched it into a realm that can't possibly be supported by reality," Citron wrote in a report.

Citron said it expects the stock to shed half of its value over the next year.

About 5.37 million shares of Ambarella have changed hands as of 10:24 a.m. ET today, compared to its average trading volume of about 4.28 million shares a day.

Santa Clara, Calif.-based Ambarella is a developer of semiconductor processing solutions for video that enable high-definition, video capture, sharing, and display.

The company's system-on-a-chip designs HD video processing, image processing, audio processing, and system functions onto a single chip, delivering video and image.

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, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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