Ambarella Inc.

Ambarella, Inc. delivered a positive result and managed an all-around beat last quarter. The company’s revenue was essentially flat from one quarter to the next. Their AI business expanded both sequentially and yearly. The business selling video processors was down sequentially and by nearly 50% from the previous year. Ambarella’s blended ASP was over $12 and is on track to increase by nearly 20% from the previous quarter. Moreover, their team continues to have high expectations for the business of AI inference processors’ mid- to long-term growth. However, the immediate climate is quite difficult for the company. Ambarella started porting META’s LLaMA 2 to the CV3-AD-High in the most recent quarter, and their team anticipates making chatbot demos accessible later this year. Furthermore, Dynacolor unveiled its Model Q next-generation multidirectional camera. Hanwha introduced three new bi-spectrum AI cameras powered by their CV2 AI SoC in South Korea. These cameras deliver 4K video and infrared imaging at the same time, allowing for the speedy identification and categorization of vehicles or intruders. As these new products ramp up and the team captures additional software value, they expect their blended ASP to climb further.