Jump on board Ambarella (NSDQ: AMBA ) with software-on-a-chip (SoC) that powers the high definition cameras used in some of the drones and virtual reality products hitting the shelves this holiday season.

Target: $75.

Ambarella’s earnings took a hit this year due to a decline in revenue from a large customer and because of a supply disruption of critical components caused by the April 2016 earthquake in Japan.

The decline in revenue from GoPro, which at one point made up almost one third of revenue, has begun to abate. A slow return of components from Sony in Japan and the delivery of chips to drone makers DJI and Yunee and Garmin’s VIRB camera will boost revenue.

We think drones will be the hit product this holiday season but see huge upside for commercial applications as well. Ambarella is one of the few pure plays to ride the tail wind of high definition aerial cameras.

Our target of $75, 30% higher than current levels, is based on a PE of 23 times 2018 (ends January 2018) estimates of $3.25. We think estimates will soar even higher once the risk of component shortages dissipates.