Ambarella Earnings Preview: What to Expect from the Semiconductor Stock in Q3

Ambarella (AMBA) develops semiconductor solutions for video that enable high-definition and ultra-high-definition compression, image processing, and deep neural network processing worldwide. Its system-on-a-chip designs integrate HD video processing, image processing, artificial intelligence (AI) computer vision algorithms, and audio processing onto a single chip to deliver video and image quality. These solutions are used in automotive cameras such as recorders, electronic mirrors, driver assistance camera systems, and cabin monitoring systems. 

Valued at a market cap of $2.43 billion, Ambarella went public in October 2012, and has since returned 875%. However, the stock also trades 74% below all-time highs, allowing investors to buy the dip and benefit from outsized gains when investor sentiment improves. Let’s see what you should expect from Ambarella’s upcoming earnings, and whether the semiconductor stock is a good buy at the current multiple.