Shares of GoPro (GPRO) chip supplier Ambarella (AMBA) jumped Thursday despite the action camera maker's underwhelming quarterly report, with several analysts taking bullish stances on Ambarella and reminding investors of its underappreciated efforts outside of GoPro.

UNDESERVED SELLOFF: Canaccord analyst Matthew Ramsay cut his price target on chip supplier Ambarella to $65 from $90 in the wake of GoPro's significantly underwhelming earnings report Wednesday night. However, despite GoPro's "shocking" financial outlook and decision to cancel several mid-tier products featuring Ambarella chips, Ramsay reiterated his Buy rating and long-term conviction on the shares. Ambarella's "highly differentiated" product portfolio looks well positioned to maintain market share amid growth in underappreciated, non-GoPro end markets such as security, drone, automotive, wearables, cameras and other computer vision applications, the analyst explained, arguing that the non-GoPro portions of Ambarella's business deserve a "much higher" multiple. Though he lowered his near-term estimates for the company given its link to the embattled action camera maker, Ramsay argued that the two firms are "too often" tied together, with recent declines in Ambarella now representing a buying opportunity for long-term investors.

NEARING BOTTOM: Research firm Dougherty was also bullish on Ambarella following GoPro's report, upgrading the shares to Buy with a $43 price target. GoPro's correction has been known since Ambarella reported earnings in December, said Dougherty, adding that Ambarella shares looked to be near a bottom prior to their pop today.

PRICE ACTION: Shares of Ambarella have advanced 8.4% to $40.55, while GoPro has slumped 8% to $9.86 in afternoon trading.