SANTA CLARA, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2026 financial results for the period ended April 30, 2025. Revenue for the first quarter of fiscal 2026 was $85.9 million, up 57.6% from $54.5 million in the same period in fiscal 2025.Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2026 was 60.0%, compared with 60.9% for the same period in fiscal ...

Core Viewpoint - Ambarella, Inc. is positioned for strong growth in the next 12-24 months, becoming a leader in "edge AI semiconductor" technology, as indicated by record AI-driven revenue in Q4 FY2025 [1] Group 1: Company Performance - The company reported record AI-driven revenue in Q4 FY2025, showcasing its leadership in the edge AI semiconductor market [1] Group 2: Management Philosophy - The CEO, Fermi Wang, emphasizes a disciplined and data-driven investment approach, focusing on simplicity and common sense for success [1] - The investment strategy is fully quant-driven, relying on model recommendations without human interference, which aims to eliminate individual bias in stock selection [1]

SANTA CLARA, Calif., May 06, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced it will hold its first quarter fiscal year 2026 earnings conference call on Thursday, May 29, 2025 at 1:30 p.m. (Pacific Time). The company will issue its earnings release after the market closes that same day. Those interested in asking a question on the call are required to register online in advance. Once registered, the dial-in numbers will be provided with a personal i ...

Core Viewpoint - The article highlights three under-the-radar AI stocks—Innodata, Ambarella, and Symbotic—that may present investment opportunities despite the current market volatility caused by increased tariffs from the Trump administration [1][2]. Group 1: Innodata - Innodata transitioned from a slow-growth analytics software company to a provider of task-specific microservices for AI data preparation, significantly increasing its revenue and adjusted EBITDA by 96% and 249% respectively in 2024 [3][4]. - Analysts project a compound annual growth rate (CAGR) of 31% for revenue and 29% for adjusted EBITDA from 2024 to 2026, with an enterprise value of $938 million, indicating it is reasonably priced at 23 times this year's adjusted EBITDA [6]. - Despite potential slowdowns due to macroeconomic challenges, Innodata is expected to maintain its position in the high-growth AI market niche [5]. Group 2: Ambarella - Ambarella specializes in image processing system on chips (SoCs) and computer vision chips, which are essential for security cameras, drones, and connected vehicles [7]. - The company experienced a 26% revenue increase in fiscal 2025, driven by stabilization in its automotive and IoT sectors, as well as increased sales of AI-oriented CV5 chips [9]. - From fiscal 2025 to fiscal 2028, analysts anticipate an 18% CAGR in revenue, with an enterprise value of $1.6 billion, making it reasonably valued at four times this year's sales [10]. Group 3: Symbotic - Symbotic develops fully autonomous warehouse robots and claims that a $50 million investment in its modules can yield $250 million in savings over 25 years [12]. - The company has a long-term contract with Walmart to automate its distribution centers, which accounted for 87% of its revenue in fiscal 2024, leading to a 55% revenue increase and positive adjusted EBITDA [13]. - Analysts expect revenue and adjusted EBITDA to grow at a CAGR of 25% and 76% respectively from fiscal 2024 to fiscal 2027, with an enterprise value of $891 million, indicating it is undervalued at 0.4 times this year's sales [15].

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 ...

Core Viewpoint - Ambarella's stock experienced a significant drop of 17% following the release of its fiscal 2025 fourth-quarter results, despite strong revenue growth and profitability, presenting a potential buying opportunity for investors [2][3]. Financial Performance - Ambarella's fiscal Q4 revenue increased by 63% year over year to $84 million, surpassing the consensus expectation of $78 million [3]. - The company reported a non-GAAP profit of $0.11 per share, a notable improvement from a loss of $0.24 per share in the same quarter last year [3]. Market Dynamics - The demand for edge AI applications has accelerated Ambarella's growth, with 70% of its revenue in fiscal 2025 coming from edge AI processor sales [4][7]. - The edge AI market is projected to grow by 2.3 times over the next five years, driven by increased adoption in the markets Ambarella serves [6]. Product Development - Ambarella's AI capabilities in its computer vision processors enable advanced image and video interpretation, positioning the company well for future demand in edge AI devices [5]. - The introduction of smaller and optimized models is expected to enhance AI processing capabilities at the edge, further supporting revenue growth [8]. Future Outlook - Ambarella anticipates fiscal Q1 revenue to reach $84 million, representing a 54% increase from the previous year [9]. - Analysts have raised revenue growth expectations for Ambarella over the next three fiscal years, indicating confidence in the company's long-term prospects [9][11]. Valuation - The recent stock price drop has reduced Ambarella's price-to-sales ratio to 9, making it relatively attractive compared to the U.S. technology sector's average of 7.7 [10]. - The 12-month price target for Ambarella is set at $95, suggesting a potential 55% increase from current levels, reinforcing the case for investment [12].

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. ...