Innodata, Ambarella, and Symbotic could attract more attention soon.The Trump administration's "Liberation Day" tariffs on most of America's trading partners recently deflated many of the market's hottest artificial intelligence (AI) stocks. While the AI market should keep growing, higher tariffs could force many companies to rein in their spending on those expensive projects until the macro environment stabilizes.But if we dig deeper, we'll find some under-the-radar AI stocks that could still be worth accu ...

SANTA CLARA, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ:AMBA), an edge AI semiconductor company, today announced during the ISC West security expo that it is continuing to push the envelope for what is possible with generative AI at the edge. As a leading supplier of edge AI systems- on-chip (SoCs), Ambarella recently achieved the milestone of 30 million cumulative units shipped. The company is reinforcing that business and technology leadership with live demonstrations at this week' ...

Revenue Sources and Market Focus - Ambarella's revenue primarily comes from human-viewing applications, including IP security cameras and drones, with a focus on machine sensing since 2018[20]. - Sales to customers in Asia accounted for approximately 85%, 79%, and 79% of total revenue in the fiscal years ended January 31, 2025, 2024, and 2023, respectively, indicating a strong reliance on the Asian market[59]. - The customer WT Microelectronics Co., Ltd. accounted for approximately 63% of total revenue in fiscal year 2025, highlighting the company's dependence on a limited number of customers for significant revenue[62]. - A significant portion of revenue is derived from a limited number of customers, with WT Microelectronics Co., Ltd. accounting for approximately 63% of total revenue in fiscal year 2025[112]. - Approximately 63%, 53%, and 57% of revenue was derived from sales through a single distributor, WT, for the fiscal years ended January 31, 2025, 2024, and 2023, respectively[156]. Product Development and Technology - The latest CV3 AI central domain controller is designed for partially to fully automated driving applications, enhancing sensor fusion and planning capabilities[22]. - The N1 SoC can run large language models (LLMs) with up to 34 billion parameters, targeting IoT applications in industrial robotics and intelligent healthcare[23]. - The CV7 family offers a leading combination of low power and high performance for automotive and IoT edge AI applications, built on advanced 5nm process technology[21]. - Ambarella's acquisition of Oculii enhances its radar perception capabilities, improving resolution, range, and accuracy for mobility applications[24]. - The CV3-AD family of automotive AI domain controllers targets L2+ to L4 autonomous vehicles, featuring a 20x performance increase over the previous generation[38]. - Ambarella's AI SoCs are optimized for edge inference, providing low latency and high accuracy while minimizing power consumption[27]. - The company introduces two to three new silicon products annually, leveraging flexible software development kits to meet diverse market needs[37]. - The company has developed multiple generations of AI accelerator architecture, with third generation CVflow-based SoCs enabling efficient processing for transformer AI networks, crucial for next-generation automotive and generative AI markets[39]. - The company’s proprietary AmbaCast architecture provides up to 2x better compression efficiency with H.265 compared to H.264, enhancing video processing capabilities[56]. - The company’s CVflow architecture supports large language model inferencing with models up to 34 billion parameters on a single N-1 SoC, showcasing its advanced processing capabilities[52]. - The company’s software modules include features for automotive applications such as ADAS and autonomous driving systems, enhancing its product offerings[44]. - The company’s CVflow processors are designed for deep learning and HD radar processing, covering a broad range of consumer, professional, and automotive requirements with power efficiency[48]. - The company’s advanced image processing capabilities allow for capturing raw sensor data at up to 32-megapixel (8K) resolution at 60 frames per second, improving overall image quality[55]. Research and Development - Approximately 75% of the company's employees are engaged in research and development, focusing on integrating AI functionality into video processing solutions[72]. - The company has established four research and development design centers located in the United States, China, Italy, and Taiwan[73]. - Research and development expenses were $226.1 million, $215.1 million, and $204.9 million for fiscal years 2025, 2024, and 2023, respectively, with expectations for future increases[125]. - The company is increasing investments in research and development to target key markets such as automotive OEM and robotics[128]. - The company expects an increase in research and development expenditures compared to prior periods to support new technology and solutions[142]. Market Risks and Competition - The company anticipates increased competition in the semiconductor market, particularly in AI and video processing, which may lead to price pressure and reduced profitability[74][76]. - The company may face increased competition in the future, which could adversely affect revenue and market share[95]. - The semiconductor industry is highly cyclical, characterized by rapid technological change and price erosion, which could adversely affect business and operating results[131]. - The semiconductor industry is experiencing cyclical conditions, leading to unpredictable quarterly operating results and potential declines in margins and profitability[141]. - Competition in the semiconductor market is expected to intensify, which could result in price pressure and reduced profitability[116]. Supply Chain and Manufacturing - The company employs a fabless business model, outsourcing manufacturing to third-party foundries, which allows for flexibility and reduced capital requirements[67]. - The company currently manufactures solutions using 10nm and 5nm process nodes, with a substantial majority of SoCs supplied by Samsung Electronics Corporation[68]. - Global supply chain challenges have previously led to a semiconductor supply shortage, affecting manufacturing lead times and revenue[103]. - Shortages or increased costs of wafers and materials could adversely impact gross margins and lead to reduced revenues[106]. - The company relies on third-party foundries for manufacturing, which may lead to challenges in meeting customer demand and could negatively impact revenue[131]. - The company does not have long-term supply contracts with most primary third-party vendors, leading to potential supply constraints and pricing pressures[151]. - The company relies on third parties for manufacturing operations, and any disruptions could significantly impact production and customer relationships[149]. Financial Performance and Customer Dependence - The company faces significant risks if customers do not design its solutions into their products or if those products are not commercially successful, which could harm revenue[96]. - Demand for SoCs is influenced by customer product demand, which can fluctuate due to market conditions, leading to potential revenue shortfalls and excess inventory[110]. - The company has increased inventory levels due to longer manufacturing times and increased customer demand during fiscal year 2023, although inventory conditions have generally returned to normal[109]. - The complexity of the company's solutions could lead to unforeseen delays or expenses, impacting market adoption and operating costs[95]. - The company faces risks associated with international operations, including geopolitical instability and compliance with local laws[136]. Regulatory and Compliance Issues - The company is subject to governmental export and import controls, which could impair its ability to compete in international markets, particularly in China[99]. - Compliance with U.S. export controls is necessary, and failure to obtain required licenses could harm international sales and revenue[170]. - The company is subject to evolving privacy and data protection regulations, which may require significant changes to products and practices[175]. - Non-compliance with anti-corruption laws could result in penalties and adversely affect the company's operations and reputation[176]. - The company implemented an anti-corruption compliance program but cannot guarantee that all employees and partners will adhere to policies, which could lead to significant legal and financial repercussions[177]. - Compliance with increasingly complex environmental regulations may delay operations and increase costs, particularly due to the EU's RoHS directive and similar regulations in other jurisdictions[178]. - Failure to comply with environmental laws could result in fines, penalties, and disruptions in product shipments, adversely affecting business relationships and operational results[179]. - The company is subject to costly regulatory compliance requirements, including Section 404 of the Sarbanes-Oxley Act, which could harm business and operating results if not adhered to[180]. Cybersecurity and Operational Risks - The company’s cybersecurity risk management program is ISO 27001 certified and includes regular assessments and incident response plans[212]. - The Board of Directors oversees cybersecurity risks and receives updates on significant incidents, ensuring management accountability[218]. - The company conducts mandatory cybersecurity training for personnel and performs phishing tests to maintain awareness among employees[221]. - Security breaches pose a material risk to the company, potentially leading to unauthorized access to confidential information and significant costs[120]. - The company is vulnerable to operational disruptions from various risks, including technical breakdowns and geopolitical conditions, particularly in Taiwan or China[207]. - Climate change may lead to increased frequency and intensity of natural disasters, impacting the company's supply chain and customer demand[210]. Intellectual Property and Legal Risks - The company may face significant costs and operational impacts from potential intellectual property litigation, which is common in the semiconductor industry[193]. - The use of open source software in products may expose the company to risks that could compromise proprietary intellectual property[196]. - The company monitors open source software usage to prevent unintended disclosures of proprietary code, but risks remain if third-party software incorporates such elements[197]. - The trading price of the company's ordinary shares has ranged from a low of $36.02 to a high of $227.59 since February 1, 2020, indicating high volatility[198]. - The company faces potential significant legal expenses and damages related to alleged intellectual property infringements, which could impact financial performance[199]. Economic and Market Conditions - Global economic conditions, including inflation and recessionary concerns, may negatively impact customer demand and operating expenses[163]. - Trade tensions between the U.S. and China, including tariffs and export controls, create an uncertain business environment that could affect future operations[164]. - Restrictions on selling products to certain Chinese customers due to the BIS Entity List may lead to loss of market share and revenue[169]. - Fluctuations in currency exchange rates may adversely affect operating results, particularly with significant sales denominated in U.S. dollars[143]. - The semiconductor market has experienced extreme price and volume fluctuations, which may not correlate with the company's actual operating performance[200].

It has been about a month since the last earnings report for Ambarella (AMBA) . Shares have lost about 16.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Ambarella due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It tur ...

One stock that might be an intriguing choice for investors right now is Ambarella (AMBA) . This is because this security in the Electronics - Semiconductorsspace is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Compu ...

Ambarella (AMBA 1.45%) stock has been in red-hot form on the market since the second half of 2024, but its healthy rally came to an abrupt halt following the release of its fiscal 2025 fourth-quarter results (for the three months ended Jan. 31) on Feb. 26.Ambarella stock crashed a massive 17% on the day following its earnings release. However, this sharp pullback in this fast-growing company's stock price is an opportunity for savvy investors to buy a solid artificial intelligence (AI) stock at an attractiv ...

Ambarella, Inc.'s (AMBA) shares soared 11.3% during Wednesday’s extended trading session following the company’s reported stronger-than-expected fourth-quarter fiscal 2025 results. It reported fourth-quarter non-GAAP earnings of 11 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of a penny. The bottom line also experienced a robust improvement from the year-ago quarter’s loss of 24 cents per share.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. ...

Core Insights - Ambarella (AMBA) reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.24 per share a year ago, resulting in an earnings surprise of 1,200% [1] - The company achieved revenues of $84.02 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 7.52% and increasing from $51.62 million year-over-year [2] - Ambarella has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Ambarella's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $73.9 million, and -$0.14 on revenues of $321.35 million for the current fiscal year [7] Industry Context - The Electronics - Semiconductors industry, to which Ambarella belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ambarella's stock performance [5]

Revenue Performance - Revenue for Q4 fiscal 2025 was $84.0 million, up 62.8% from $51.6 million in Q4 fiscal 2024[3] - For the fiscal year ended January 31, 2025, revenue was $284.9 million, up 25.8% from $226.5 million for the fiscal year ended January 31, 2024[3] - The company expects Q1 fiscal 2026 revenue to be between $81.0 million and $87.0 million[3] - The company anticipates mid to high teens revenue growth in fiscal 2026, driven by 5nm products including the CV5 and CV7 families[6] Profitability - GAAP net loss for Q4 fiscal 2025 was $20.2 million, or loss per diluted share of $0.48, compared to a net loss of $60.6 million, or loss per diluted share of $1.50, in Q4 fiscal 2024[3] - Non-GAAP net profit for Q4 fiscal 2025 was $4.8 million, or earnings per diluted share of $0.11, compared to a non-GAAP net loss of $9.8 million, or loss per diluted share of $0.24, in Q4 fiscal 2024[3] - For the three months ended January 31, 2025, GAAP net loss was $20,234 thousand compared to a net loss of $60,607 thousand for the same period in 2024[19] - Non-GAAP net income for the three months ended January 31, 2025, was $4,767 thousand, compared to a loss of $9,825 thousand in 2024[19] Margins - Gross margin for Q4 fiscal 2025 was 60.0%, compared to 59.8% for the same period in fiscal 2024[3] - Non-GAAP gross margin is expected to be between 61.0% and 62.5% for Q1 fiscal 2026[3] - The difference between GAAP and non-GAAP gross margin was 2.0% for the three months ended January 31, 2025, amounting to $1.7 million[18] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q4 fiscal 2025 was $250.3 million, up from $226.5 million at the end of the prior quarter[5] - Total current assets increased to $320,551 thousand as of January 31, 2025, from $280,157 thousand in 2024[21] - Cash and cash equivalents remained relatively stable at $144,622 thousand in 2025 compared to $144,914 thousand in 2024[21] - The company reported total assets of $688,968 thousand as of January 31, 2025, up from $657,655 thousand in 2024[21] Liabilities and Deficits - Total liabilities rose to $127,556 thousand in 2025 from $97,784 thousand in 2024[21] - The accumulated deficit increased to $252,057 thousand in 2025 from $134,931 thousand in 2024[21] Stock-Based Compensation and Acquisition Costs - Total stock-based compensation for the twelve months ended January 31, 2025, was $108,043 thousand, a decrease from $111,316 thousand in 2024[18] - Total acquisition-related costs for the twelve months ended January 31, 2025, were $5,044 thousand, slightly down from $5,108 thousand in 2024[18] Product Shipment - Cumulatively, the company has shipped about 30 million edge AI processors, marking a quarterly and annual record[6]

Core Viewpoint - Ambarella, Inc. reported strong financial results for the fourth quarter and full year of fiscal 2025, highlighting significant revenue growth driven by edge AI products and providing optimistic guidance for fiscal 2026 [1][4]. Financial Performance - Fourth quarter revenue reached $84.0 million, a 62.8% increase from $51.6 million in the same period of fiscal 2024 [5]. - For the fiscal year ended January 31, 2025, total revenue was $284.9 million, up 25.8% from $226.5 million in fiscal 2024 [5]. - Gross margin for the fourth quarter was 60.0%, slightly up from 59.8% year-over-year, while the fiscal year gross margin was 60.5%, compared to 60.4% in the previous year [5]. - The company reported a GAAP net loss of $20.2 million for the fourth quarter, improving from a loss of $60.6 million in the same quarter of fiscal 2024 [5]. - Non-GAAP net profit for the fourth quarter was $4.8 million, compared to a non-GAAP net loss of $9.8 million in the same period last year [5]. Cash Position - At the end of the fourth quarter of fiscal 2025, Ambarella had total cash, cash equivalents, and marketable debt securities of $250.3 million, an increase from $226.5 million in the prior quarter and $219.9 million year-over-year [3]. Future Guidance - For the first quarter of fiscal 2026, Ambarella expects revenue between $81.0 million and $87.0 million, with a non-GAAP gross margin projected between 61.0% and 62.5% [5]. - The company anticipates mid to high teens revenue growth in fiscal 2026, driven by its 5nm products, particularly the CV5 and CV7 families [4]. Market Position - Over 70% of Ambarella's total revenue in fiscal 2025 came from edge AI products, marking both a quarterly and annual record [4]. - The company has shipped approximately 30 million edge AI processors, integrating proprietary deep learning AI accelerators [4]. Operational Insights - Ambarella's focus on efficient operations aims to drive positive operating leverage moving forward [4]. - The company continues to invest in research and development, with operating expenses for R&D reaching $226.1 million for the fiscal year [16]. Conference Call - A conference call is scheduled to discuss the fourth quarter results, providing further insights into the company's performance and future strategies [6].