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Should You Buy Shares of Ambarella After the Company Beat Q3 Earnings Estimates? -Breaking

by Mike Robinson

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© Reuters. Do You Should Buy Ambarella Shares After Q3 Earnings Expectations Beat?

Shares of the leading company in artificial intelligence Ambarella Inc . (NASDAQ:) have surged in price over the past few weeks on the back of the company’s impressive financial performance in its last reported quarter. AMBA stocks may be struggling to sustain their recent rally due to uncertainties such as the continued resurgence in COVID-19 cases, and the continuing global shortage of semiconductors. Let’s find out.Santa Clara, Calif.-based Ambarella Inc. (AMBA) offers semiconductor solutions for high-definition (HD) and ultra-high-definition (UHD) compression image processing and network processing. These technologies enable the production of video footage that can be used in wearable, automotive, and virtual reality cameras.

Analyst estimates were exceeded by the company’s third quarter earnings. Since then, shares of the company have experienced an unprecedented price rise. Adjusted earnings for the quarter were $0.57 per share, which beat the consensus estimate of 16.2%. Revenue of $92.17 millions was 2 percentage points higher than consensus. AMBA’s stock price jumped 25% last week. Fermi Wang CEO attributed AMBA’s increased earnings to the high-margin company’s “transition into deep learning AIoT processor company”.

Although the company continues to execute well, it faces challenges in semiconductor supply. AMBA could be affected by component shortages at other businesses.

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