Dylan Bradfield, portfolio manager at Sharenet.
Buy: Ambarella
Ambarella designs low-power edge AI systems-on-chip that specialise in computer vision for cameras, advanced driving-assistance systems, autonomous vehicles, robotics and security. In fiscal 2026, revenue hit a record $391m (up 37%), with edge AI now 80% of sales — and growing even faster. The company has shipped tens of millions of AI chips, built a strong design-win pipeline (including robotics) and signed a long-term Hanwha partnership with $800m potential revenue over 10-plus years. Newer product nodes support higher average selling prices and margins as physical AI expands. NXP Semiconductors is in talks to acquire Ambarella, according to Financial Times reports in late July, aiming to bolster its software-defined vehicle, radar, electrification and edge-AI capabilities. Even without a completed transaction, Ambarella offers standalone growth in a consolidating semiconductor landscape focused on edge AI.
Sell: Serve Robotics
Mobility giant Uber fully exited its Serve Robotics stake in the second quarter of this year, selling over 2-million shares previously valued at $17.5m. The move, a surprise to the Nasdaq-listed Serve, stems from disagreements on robot deployment and utilisation. Delivery volumes through Uber declined for the first time after 17 growth quarters. Serve will not renew the partnership expiring in early 2027. It’s worth noting that Uber once accounted for around 71% of Serve’s revenue. The quarter revenue reached $3.2m (up 404% year on year) but is reflecting weak sequential growth, with net losses of $64.1m. Full-year 2026 guidance was cut from around $26m to $9m–$10m due to lost Uber demand. Despite holding $240m in cash, high losses and an unproven path to scale persist. Diversification into DoorDash and health care appears inadequate, making the stock a sell candidate amid partner loss and financial pressure.
