AMBA

Ambarella, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is AMBA Halal?

Edge-AI and computer-vision semiconductor business — generally permissible activity, but the current liquidity screen fails.

What You Should Know

Ambarella's April 30, 2026 Form 10-Q reports assets of $794.838 million, no interest-bearing debt, cash of $114.443 million, marketable debt securities of $188.235 million, receivables of $39.175 million and quarterly revenue of $100.357 million. Debt/assets is 0.00%, liquidity/assets is 38.08%, receivables plus cash/assets is 19.33% and other income, net is a conservative upper bound of 2.08% of revenue. The liquidity screen fails; no universal prohibited-revenue numerator is disclosed.

⚠️ Concerns

  • Liquidity/assets is 38.08%, above examined 33.333% limits
  • Large marketable-debt-securities portfolio
  • Security-camera and surveillance applications
  • Disclosed other income, net is a conservative upper bound of 2.08%; no fixed purification percentage asserted
  • Automotive autonomy and semiconductor cyclicality

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 794.838

Cash + interest-bearing securities / assets
38.08%Above limit
Below 33.333% under FTSE Yasaar

302.678 / 794.838

Receivables + cash / assets
19.33%Within limit
Below 50% under FTSE Yasaar

153.618 / 794.838

Non-compliant income / revenue (upper bound)
2.08%Within limit
No more than 5% under FTSE Yasaar

2.083 / 100.357

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 0.00%, liquidity/assets is 38.08% and receivables-plus-cash/assets is 19.33%; liquidity exceeds the examined FTSE limit and the income upper bound is 2.08%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 38.08%, above the examined MSCI total-assets limit; this is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 38.08%, above the examined Malaysia limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored; the asset-based liquidity screen already fails.

Business-activity disclosure

Ambarella designs edge-AI and computer-vision system-on-chip processors for automotive, security, IoT and other vision applications. The semiconductor activity is generally permissible, while surveillance, customer and end-use revenue is not reduced to a universal prohibited-revenue numerator.

Limitation: The filing does not classify every camera, automotive or IoT end use by a universal Sharia category; activity remains qualitative.

Purification

Other income, net is used as a conservative upper bound of $2.083 million; ZakatInvest does not prescribe a scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Ambarella's April 30, 2026 Form 10-Q.
  • No interest-bearing debt is reported; operating lease liabilities are excluded.
  • Cash is $114.443 million and marketable debt securities are $188.235 million across current and non-current balances.
  • Net accounts receivable is $39.175 million and first-quarter revenue is $100.357 million.
  • Other income, net is $2.083 million and is used as a conservative upper bound because the filing does not reduce every component to a standalone interest numerator.
  • Edge-AI and computer-vision semiconductors are generally permissible, but surveillance and customer end uses remain qualitative.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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