Ambarella Becomes an Artificial Intelligence Stock

"Ambarella is an artificial intelligence ("AI") company," says the first line in a recent Ambarella (AMBA) investor presentation to Morgan Stanley. More than four and a half years ago, we wrote about how Ambarella was seeing very strong revenue growth selling semiconductor processing solutions for video in four primary segments: camera-based advanced driver assistance systems (ADAS), wearable cameras like GoPro, cameras for drones, and home automation cameras. Since that article, shares of Ambarella have fallen -50% compared to a NASDAQ return of 73% over the same time frame. Fortunately, the company is being forthcoming with investors as to why the company's stock has performed so poorly. We had previously remarked how a lack of transparency into the company's financials prevented investors from seeing which of these areas were contributing to all that strong revenue growth.