Revenue Performance - Revenue for Q3 FY 2026 was $108.5 million, up 31.2% from $82.7 million in Q3 FY 2025[3] - The company expects Q4 FY 2026 revenue to be between $97.0 million and $103.0 million[3] - The new revenue growth guidance for FY 2026 is projected to be between 36% and 38%, an increase from the previous estimate of 31% to 35%[6] - Ambarella's edge AI revenue has set its sixth consecutive revenue record, indicating strong demand for its products[6] Profitability Metrics - Non-GAAP net profit for Q3 FY 2026 was $11.9 million, or earnings per diluted share of $0.27, compared to $4.6 million, or $0.11 per diluted share in Q3 FY 2025[3] - GAAP net loss for Q3 FY 2026 was $15.1 million, or loss per diluted share of $0.35, an improvement from a loss of $24.1 million, or $0.58 per diluted share in Q3 FY 2025[3] - GAAP diluted net loss per share for Q3 2025 was $(0.35), an improvement from $(0.58) in Q3 2024[20] - Non-GAAP diluted net income per share for Q3 2025 was $0.27, compared to $0.11 in Q3 2024, reflecting a 145.5% increase[20] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q3 FY 2026 was $295.3 million, up from $261.2 million in the prior quarter[5] - Total current assets increased to $383,667,000 as of October 31, 2025, up from $320,551,000 at the end of January 2025, reflecting a 19.7% growth[21] - Cash and cash equivalents rose to $174,057,000, compared to $144,622,000 in January 2025, indicating a 20.3% increase[21] - Accounts receivable increased to $42,227,000 from $29,767,000, a growth of 42%[21] - Inventories rose to $39,159,000, up from $34,428,000, indicating a 13.3% increase[21] Liabilities and Equity - Total liabilities increased to $161,777,000 from $127,556,000, representing a 26.8% rise[21] - Shareholders' equity improved to $590,113,000 as of October 31, 2025, up from $561,412,000, showing a 5.1% increase[21] Operating Expenses - Operating expenses on a non-GAAP basis for Q4 FY 2026 are expected to be between $55.0 million and $58.0 million[3] - Year-to-date free cash flow is 14.8% of revenue, reflecting strong growth and operating efficiency[6] Historical Comparison - GAAP net loss for Q3 2025 was $15,107,000, compared to a loss of $24,071,000 in Q3 2024, representing a 37.5% improvement year-over-year[20] - Non-GAAP net income for Q3 2025 was $11,864,000, significantly higher than $4,459,000 in Q3 2024, marking a 166.5% increase[20]

Core Insights - Ambarella, Inc. reported record quarterly revenue of $108.5 million for Q3 FY2026, representing a 31.2% increase from $82.7 million in the same period of FY2025 [4][6] - The company anticipates revenue growth guidance for FY2026 to be between 36% and 38%, up from the previous estimate of 31% to 35% [4] - Non-GAAP net profit for Q3 FY2026 was $11.9 million, or $0.27 per diluted share, compared to a non-GAAP net profit of $4.6 million, or $0.11 per diluted share, in Q3 FY2025 [6][18] Financial Performance - Total cash, cash equivalents, and marketable debt securities at the end of Q3 FY2026 were $295.3 million, an increase from $261.2 million in the previous quarter and $226.5 million year-over-year [3] - GAAP net loss for Q3 FY2026 was $15.1 million, or a loss of $0.35 per diluted share, an improvement from a net loss of $24.1 million, or a loss of $0.58 per diluted share, in Q3 FY2025 [6][18] - Gross margin under GAAP for Q3 FY2026 was 59.6%, slightly down from 60.6% in Q3 FY2025 [6] Market Outlook - The company is optimistic about the rising demand for edge AI applications, which is expected to drive future revenue growth [4] - Ambarella's products are utilized in various edge AI applications, including video security, advanced driver assistance systems, and autonomous driving [8] - The company is focused on sustaining its edge AI R&D investment to capitalize on new product cycles and increasing average selling prices [4]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to blocked access, necessitating their temporary disablement [1]

Core Insights - Ambarella focuses on "edge AI" technology, designing system-on-a-chip (SoC) semiconductors for localized device performance, which has led to a recent surge in its stock price [1]. Company Performance - Ambarella has achieved a significant milestone by earning membership in the 95-plus composite rating club, indicating strong performance metrics [4]. - The company's stock has soared following a strong Q2 earnings report, driven by growth in the edge AI sector [4]. Market Context - The broader market has seen fluctuations, with notable sell-offs in major stocks like Nvidia, Robinhood, and Tesla, contributing to a nearly 400-point drop in the Dow Jones index [2].

Core Insights - Ambarella, Inc. has shifted its focus from solely automotive applications to include Internet of Things (IoT) solutions, resulting in significant revenue growth [1] Financial Performance - Revenue has increased nearly 50% year over year, with IoT now being the primary driver of this growth [1]

Core Insights - The article discusses the author's extensive experience in value investing and highlights the importance of analyzing listed companies in the ASEAN and US regions [1]. Group 1 - The author has two decades of investing experience and is a self-taught value investor [1]. - The blog focuses on value investing through case studies, providing insights into the valuation of companies [1]. - The author has served as a Board member of a Malaysia listed company for several decades, offering a unique perspective on the market [1]. Group 2 - The author has published a value investing book titled "Do you really want to master value investing?" available on Amazon [1].

Industry Overview - The transportation and automotive industry is expected to undergo significant changes driven by advancements in Artificial Intelligence (AI), sensor technology, and electric vehicles, particularly in the driverless vehicle market, which is projected to exceed $13 trillion by 2030 [1] Company Insights Ambarella - Ambarella's systems-on-chip (SoC) provide high processing power for extracting data from video and radar streams, applicable in advanced driver assistance systems (ADAS), autonomous driving, and robotics [2] - The company's focus on edge AI, which pertains to on-device AI applications, is expected to see its Serviceable Addressable Market (SAM) grow from $5.5 billion in fiscal 2026 to $12.9 billion in fiscal 2031 [3] - AI inferencing technology is enhancing automotive safety and telematics applications, positioning Ambarella for growth as the driverless vehicle market expands [4] Nvidia - Nvidia is a leader in GPU-accelerated computing, with its products serving as the core for computers, robots, and driverless vehicles [5] - The partnership with Uber aims to scale its autonomous fleet to 100,000 vehicles by 2027, indicating Nvidia's commitment to the driverless vehicle sector [6] - Nvidia is developing software stacks on its DRIVE level 4 platform, enhancing its competitive advantage as vehicles become more electrified and complex [7] QuantumScape - QuantumScape is focused on developing next-generation solid-state lithium-metal batteries, which are crucial for electric driverless vehicles, enhancing range, reducing costs, and improving safety [10] - The company has begun deliveries of QSE-5 samples, marking progress toward commercialization, and has shifted to a capital-light licensing model to extend its cash runway until 2030 [11] - Despite being a high-risk and volatile stock, QuantumScape's potential for commercialization could yield significant long-term gains for investors [12]

Core Viewpoint - Ambarella, Inc. will hold its third quarter fiscal year 2026 earnings conference call on November 25, 2025, at 1:30 p.m. Pacific Time, with the earnings release issued after market close on the same day [1]. Company Overview - Ambarella is an edge AI semiconductor company that provides products for various applications, including video security, advanced driver assistance systems (ADAS), electronic mirrors, telematics, driver/cabin monitoring, autonomous driving, edge infrastructure, drones, and robotics [3]. - The company's low-power systems-on-chip (SoCs) are designed for high-resolution video compression, advanced image and radar processing, and deep neural network processing, enabling intelligent perception, sensor fusion, and planning [3]. Conference Call Registration - Interested participants must register online in advance to ask questions during the call, and a registration verification code will be emailed for completion of the registration process [2]. - After registration, dial-in numbers and a personal identification number (PIN) will be sent to the registered email, which is required to access the live call [2]. Webcast Information - A live webcast of the conference call and a replay will be available on Ambarella's investor relations website [3].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional metrics for stock selection [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.81% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: Ambarella Inc. (AMBA) - Ambarella, based in Santa Clara, CA, specializes in video compression and image processing semiconductors [11] - Currently rated 2 (Buy) with a VGM Score of B, AMBA has a Momentum Style Score of B and a recent share price increase of 0.2% [11] - Seven analysts have raised earnings estimates for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.37 to $0.50 per share, and an average earnings surprise of +400% [12]

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the North American semiconductor industry, particularly the upcoming SEMICON West event and August Semiconductor Industry Association (SIA) data [1][2][3]. Key Insights - **SEMICON West Expectations**: The event is not expected to be a significant catalyst for the semiconductor sector. It is primarily a technology showcase rather than a financial event, limiting discussions on customer equipment orders and 2026 expectations [2][3]. - **Memory Market Outlook**: - The company is bullish on memory wafer fabrication equipment (WFE) with a projected growth of 22% year-over-year into 2026. This is supported by strong memory pricing, which is anticipated to lead to increased capital expenditures in memory [2][14]. - DRAM and NAND markets are expected to see a reacceleration in capital expenditures in the second half of the year, with significant equipment shipments anticipated in 2026 [2][13]. SIA Data Highlights - **August Performance**: - SIA data showed semiconductor sales increased by 11.3% month-over-month, surpassing the estimate of 4.5% and the 10-year average of 7.9%. Year-over-year growth accelerated from 20.6% to 21.7% [8][10]. - Memory sales were particularly strong, with DRAM sales up 45.4% month-over-month, exceeding the estimate of 30.3% [16]. - NAND sales also performed well, increasing by 39.0% month-over-month, compared to an estimate of 36.1% [16]. Geographic Trends - **Sales by Region**: - Asia Pacific saw the highest growth at 53.5%, followed by The Americas at 15.7%, China at 15.1%, and Europe at 2.5%. Japan experienced a decline of 9.1% [8]. Pricing Dynamics - **Memory Pricing**: - DRAM prices per gigabit increased by 1.2% to $0.4610, reflecting a year-over-year increase of 14.4%. NAND prices per gigabit decreased by 5.3% to $0.0085, with a year-over-year decline of 22.9% [21][24]. Future Projections - **Forecast Adjustments**: - The forecast for 2025 revenue growth was raised from 17.7% to 22.2%, and the 2026 forecast was adjusted to 15.1% ($887 billion) from 10.6% ($821 billion), primarily due to memory pricing trends [14]. - A new cycle for memory is anticipated to begin in 2026, driven by current market dynamics [13][14]. Risks and Considerations - **Geopolitical Factors**: Recent policy disruptions, including anti-dumping investigations and new regulations affecting equipment suppliers, may pose risks to the semiconductor sector. However, the near-term outlook remains optimistic for memory companies and AI beneficiaries [18]. Conclusion - The semiconductor industry is experiencing robust growth, particularly in the memory segment, with positive trends expected to continue into 2026. However, external factors such as geopolitical tensions and market dynamics will need to be monitored closely.