12 Best Small Cap AI Stocks To Buy According to Hedge Funds

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2. Ambarella Inc. (NASDAQ:AMBA)

Market Cap as of December 2: $2.92 billion

Number of Hedge Fund Holders: 30

Ambarella Inc. (NASDAQ:AMBA) is a leading-edge AI semiconductor company focused on high-performance, low-power video processing solutions. Its chips power a range of devices, including action cameras, drones, security cameras, and automotive systems. By enabling AI applications to be executed at the edge of a network, its technology reduces latency, enhances privacy, and optimizes system performance.

Its recent financial results highlight the strong demand for its AI-powered solutions. The company achieved record AI revenue in Q3, driven by the success of its new higher-priced AI processors, particularly the 5nm CV5 processor. This led to a 30% sequential revenue increase and a 63.36% year-over-year growth.

The company’s product roadmap is centered around a series of AI waves, each focusing on specific market segments and technologies. The first wave, driven by the CV5 and CV7 processors, is targeting both automotive and IoT applications. The second wave will introduce the CV3 AD family of SoCs, which are designed for advanced Level 2+ and higher levels of autonomy in the automotive market.

Its commitment to AI innovation is evident in its strategic investments in research and development. Ambarella Inc.’s (NASDAQ:AMBA) team of engineers is continuously pushing the boundaries of AI technology, developing cutting-edge solutions that address the evolving needs of the market.

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