6. Ambarella, Inc. (NASDAQ:AMBA)
Number of Hedge Fund Investors in Q1 2024: 30
Ambarella, Inc. (NASDAQ:AMBA) is a hardware company that sells image processing and sensing products along with chips that can compute artificial intelligence workloads. This makes it a key stock for humanoids, as sensory processing is a key requirement for these products. A high growth stock, Ambarella, Inc. (NASDAQ:AMBA)’s products are used in other devices such as video sensing products. This means that the stock, and the firm, tend to thrive during a high growth environment that is not constrained by either high inflation or high interest rates. Consequently, Ambarella, Inc. (NASDAQ:AMBA)’s shares are down 27% year to date since the firm has held to deal with the non AI GPU related inventory correction in the semiconductor industry. Ambarella, Inc. (NASDAQ:AMBA) sells 5nm processors, which are the second most advanced in the world. This offers its products performance and power efficiency advantages, and it could ride any potential wave in video surveillance, video processing, and tangential industries.
Ambarella, Inc. (NASDAQ:AMBA)’s products are also able to target the growing assisted driving industry. The firm’s management shared insights for this business during its Q1 2025 earnings call:
“Zooming out for a minute, the significant capacity being added to the AI training network infrastructure globally both help for the ultimate deployment of AI inference at edge where we participate in the market. The deployment of AI inference at edge enables end-users to more practically take advantage of so many different AI breakthroughs. As focused on AI and the edge of networks increase, we see AI inferencing proliferating in multiple areas, and we believe we are well positioned to take advantage of this. In fact, we are already in the early stage of demonstrating how it may play out for us. In Q1, for example, our customer engagement includes our first passenger vehicle wins for our 5-nanometer CV3-AD family of AI central domain controllers.
We added another CV3-AD win in the commercial vehicle market, secured multiple enterprise class AI inferencing wins, and even in other IoT cameras, we are reporting additional wins for our 5nm CV5 AI process. In the midst of this great change, our opportunity and the challenge are to develop AI technology and products that not only are extremely efficient for edge deployment, but also flexible enough to execute a very wide range of AI workload across all disparate applications. We are already in mass production with our AI products for video-intensive CNN networks, such as detection, classification, fusion, planning, stitching, mapping, tracking, framing, auto-editing, and neural network image signal processing. Now our third generation of AI technology integrated into our CV3-AD and CV7 series of SoC can support transformer networks for a variety of generative AI applications.”