Ambarella's Weak Sales Outlook Impacts AMBA Stock
Ambarella, a computer-vision chipmaker, reported better-than-expected earnings for its fiscal second quarter but gave a weak sales outlook for the current quarter, causing its stock to plummet. The company expects sales of $50 million for the third quarter, significantly below Wall Street's estimate of $67.9 million. Ambarella attributes the challenging environment to customers aggressively reducing inventory and weak end-market demand. The company anticipates inventory levels to normalize by year-end and aims to return to growth in the next fiscal year.