Forget Ambarella, Inc.: These 3 Stocks Are Better Buys

Forget Ambarella, Inc.: These 3 Stocks Are Better Buys

Ambarella (NASDAQ: AMBA), maker of image application systems on chips (SoCs) for action cameras, connected cameras, drones, and other gadgets, has underperformed its industry peers over the past year. The stock has dropped about 10% over the past 12 months, compared with a nearly 50% rally in the Philadelphia Semiconductor Index.

That mediocre performance can be attributed to soft sales at its top customer, GoPro, pricing pressure from Chinese competitors, potential competition from Qualcomm (NASDAQ: QCOM), and its premium valuation.

Image source: Ambarella.

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Source: Fool.com