Accelerating Growth For Ambarella Provides A Clear Path Forward | AMBA Stock Analysis

2 years ago
29

Investors are zooming in on Ambarella (AMBA), a maker of computer vision (CV) chips used in high-definition camera applications after the company posted upside Q3 results featuring its strongest revenue growth in over five years. Booming demand in the auto industry is the main spark that's igniting AMBA's top-line growth, which has now accelerated for five straight quarters. While the company isn't immune to rising costs and inflationary pressures, a favorable product mix that skews towards pricier CV chips is offsetting those headwinds and driving margins higher. The company does anticipate that bottlenecks in the supply chain could cause some orders to be pushed out, but its Q4 revenue guidance still came in above the consensus estimates.

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