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Ambarella: AI-Driven SoCs, Rising ASPs & the Edge Intelligence Growth Story!

Ambarella’s financial performance for the third quarter of fiscal year 2026 showed promising elements, with the company reporting record quarterly revenue of $108.5 million, a year-over-year increase of 31.2%. This revenue exceeded the high end of their guidance range and was driven predominantly by sales from the Edge AI sector, which constituted 80% of the total revenue, marking six consecutive quarters of record Edge AI revenue. The company also revised its fiscal 2026 revenue guidance upwards to a growth range of 36% to 38%, indicating robust demand and increased average selling prices (ASP). On the product side, Ambarella underscored three main drivers for their optimism regarding Edge AI: the expanding range of applications that require Edge AI technology, the anticipated rise in AI performance requirements, and the increasing ASPs.