Ambarella’s shares fell 0.8% after earnings, a broadly flat reaction. Revenue was slightly above the midpoint of guidance and edge AI revenue reached a record, while the company flagged rising memory and supply-chain costs and said it expects a seasonal third quarter.
- Management reported record edge AI revenue and sequential growth in both IoT and Auto; automotive growth was driven by commercial vehicles.
- Fiscal Q2 revenue was slightly above the midpoint of guidance, with non-GAAP EPS of $0.18.
- Ambarella expects to pass rising supply-chain costs on to customers to maintain its long-term gross-margin target of 59%–62%; memory scarcity and higher prices are affecting the broader industry.
- The company’s updated five-year serviceable-market forecast is $8.5 billion in fiscal 2027 and $22.9 billion in fiscal 2032, implying approximately 20% CAGR; IoT is expected to represent about 70% of the terminal-year market.
- Management cited seasonal fiscal Q3 guidance and described new edge-infrastructure products, including AI SoCs and a stand-alone accelerator line, as key contributors to the higher market forecast.
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