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Ambarella It rose 16% on Friday as chip designers reported better-than-expected second-quarter results and issued strong guidance.
Here’s how the company did it compared to LSEG’s expectations:
Earnings: 15 cents adjusted per share vs. 5 cents forecast revaluation: $96 million vs. $90 million
Ambarella, known for its system-on-chip semiconductors and software used in Edge artificial intelligence, said its third quarter revenue is expected to be between $100 million and $108 million, with LSEG estimates falling below $91 million.
The company increased its fiscal year revenue growth to the 31%-35% range, reaching $379 million at the midpoint, exceeding the expected LSEG of $350 million.
“After a significant few years of AI R&D investment, our broad product portfolio will help us to increase the breadth of our EDGE AI applications,” CEO Fermi Wang told analysts on Thursday.
Wang singled strength with “Portable Video, Robotic Aerial Drones, Edge Infrastructure.”
Edge computing refers to the direct processing and storage of data at the device level rather than being processed remotely in the data center cloud.
Ambarella had a net loss of 47 cents per share or a loss of 47 cents per share in the second quarter. This narrowed from the same quarter a year ago, with the company’s net loss of $35 million or 85 cents per share. Revenues increased by 50%.
The company acquired 15 cents per share after adjusting for stock-based compensation and amortization of acquisition-related expenses.
In June, Bloomberg reported that the company was considering selling and had met with the bank. The company’s shares rose 20% on the news.
Ambarella ~ Date stock price chart.
