Ambarella's Stock Soars as Edge AI Demand Fuels Strong Q2 Results and Optimistic Outlook

Ambarella stock rips 20% higher after earnings as AI demand boosts guidance

Here's how the company did compared to LSEG expectations: Ambarella, which is known for its system-on-chip semiconductors and software used for edge artificial intelligence, said it expects third-quarter revenue between $100 million and $108 million, beating the LSEG estimate of $91 million. The company boosted its fiscal year revenue growth outlook to a range of 31-35%, to $379 million at the midpoint, which topped the $350 million expected by LSEG. "After a multi-year period of significant edge AI R&D investment, our broad product portfolio enable us to address a rising breadth of edge AI applications," CEO Fermi Wang said in a call with analysts Thursday.

Ambarella Analysts Increase Their Forecasts After Upbeat Q2 Results - Ambarella (NASDAQ:AMBA)

Ambarella Inc AMBA reported better-than-expected second-quarter results and issued strong third-quarter forecast on Thursday. Ambarella reported quarterly earnings of 15 cents per share which beat the analyst consensus estimate of 5 cents per share. The company reported quarterly sales of $95.511 million which beat the analyst consensus estimate of $90.010 million. Ambarella said it sees third-quarter sales of $100.000 million to $108.000 million versus market estimates of $91.138 million. "We are experiencing strong secular growth in the edge AI market, with an expanding breadth of applications driving unit demand, often with our higher priced 5nm AI SoCs. For example, a variety of portable AI video applications have reached production status, and by the end of fiscal 2026 we expect to realize production shipments from our first robotic aerial drone win. Furthermore, our first edge infrastructure win is expected to enter production in fiscal 2027," said Fermi Wang, President & CEO. Ambarella shares rose 19.7% to trade at $84.58 on Friday. These analysts made changes to their price targets on Ambarella following earnings announcement. Needham analyst N. Quinn Bolton maintained Ambarella with a Buy and raised the price target from $90 to $100. B of A Securities analyst Vivek Arya maintained the stock with a Neutral and raised the price target from $63 to $90. Rosenblatt analyst Kevin Cassidy maintained Ambarella with a Buy and raised the price target from $95 to $100. Stifel analyst Tore Svanberg maintained the stock with a Buy and boosted the price target from $80 to $90. Considering buying AMBA stock? Here's what analysts think: Read This Next: Wall Street's Most Accurate Analysts Weigh In On 3 Risk Off Stocks With Over 5% Dividend Yields Photo via Shutterstock AMBAAmbarella Inc$84.7019.9%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum58.00Growth18.21QualityN/AValue27.26Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Meet the Skyrocketing Artificial Intelligence (AI) Stock That's Leaving Nvidia in the Dust | The Motley Fool

The booming demand for edge AI processors has given this little-known semiconductor company a big boost. Nvidia (NVDA 0.57%) and artificial intelligence (AI) have become synonymous with each other in the past couple of years as the company's graphics processing units have played a vital role in powering this new technology. After all, companies and governments around the world have been buying Nvidia's most powerful chip systems for the past three years to train AI models and run inference applications. And Nvidia has continued to deliver remarkably solid growth quarter after quarter, even after it became the world's largest company by market cap. For instance, its revenue in the second quarter of its fiscal 2026 was up by an impressive 56% from the year-ago period to just under $47 billion. Management is expecting another healthy increase of 54% in the current quarter to $54 billion. However, the market's concerns about Nvidia's business in China are weighing on the stock. But at the same time, the market has been rewarding Ambarella (AMBA 2.45%) handsomely of late. The less well-known chipmaker's stock price has jumped 52% in the past three months -- twice as fast as Nvidia grew during the period. And the smaller semiconductor stock has the potential to deliver even more gains. Ambarella designs computer vision processors that are deployed in drones, vehicles, security cameras, and other devices. Its chips are gaining terrific traction in edge devices that are intended to handle AI processes locally. This helps explain why Ambarella's revenue jumped 50% year over year to $95.5 million in its fiscal 2026 second quarter, which ended on July 31. What's more, the company posted a non-GAAP profit of $0.15 per share as compared to a loss of $0.13 per share in the prior-year period. Management pointed out on the earnings conference call that its edge AI revenues have now set fresh records for five consecutive quarters. The company expects edge AI processors to account for 80% of its overall revenue this year. Importantly, the rising demand for its chips for various uses in drones, video cameras, and vehicles has encouraged management to increase its full-year guidance. It now forecasts that its revenue will rise by 33% in fiscal 2026 to $379 million, up from an earlier forecast of 22% growth. This improved outlook is backed by the new customer wins Ambarella scored last quarter across various markets, as well as a production ramp-up of chips that are destined to go into robotic drones and edge AI devices. Another thing worth noting is that Ambarella's edge AI processors are driving an improvement in its average selling price, which explains how the company reported a major improvement in its bottom line. Even better, Ambarella is confident that it will be able to sustain its AI-fueled growth over the long run. The company projects that its serviceable addressable market in edge AI chips could increase at an annual rate of 18% over the next five years to $12.9 billion. The company also believes that it is in a position to grow at a faster pace than its addressable market does and thus win a larger market share. However, don't be surprised to see Ambarella sustaining its terrific growth levels for a much longer period. According to an estimate from market research from Market.US, the edge AI processor market's revenue could jump by 20 times over the next decade. That growth will be driven by the faster processing that edge AI processors are capable of, which is the reason why their adoption in autonomous vehicles and industrial applications is set to rise. Ambarella stock popped by nearly 17% after the company released its latest quarterly results on Aug. 28. Yet even after that gain, the stock trades at just under 10 times sales, which isn't very expensive when compared to the U.S. technology sector's average price-to-sales ratio of 8.5. The company has demonstrated that it is capable of clocking stronger top-line growth, and analysts have upgraded their expectations on that score as well. However, the sizable opportunity in the edge AI market and Ambarella's ability to grab a bigger slice of this pie could help it exceed Wall Street's expectations again. As such, this little-known AI stock looks worth buying, as its impressive growth is likely to be rewarded with a higher share price.

Ambarella Lifts 2026 Outlook on AI Surge | The Motley Fool

Ambarella (AMBA -1.81%) reported Q2 FY2026 non-GAAP revenue of $95.5 million, up 49.9% year over year (non-GAAP) and surpassing the high end of prior guidance. The company raised full-year revenue growth guidance to 31%-35%, or approximately $379 million at the midpoint for FY2026, citing broad-based edge AI (artificial intelligence) application momentum and increasing average selling price (ASP); key developments span IoT, automotive, robotics, and edge infrastructure markets. Management delivered its fifth consecutive quarter of record hybrid AI (HAI) revenue, driven in part by rapid IoT adoption and new edge AI applications in portable video, robotics, and infrastructure. Raised full-year revenue growth guidance from 19%-25% (set in May 2025) to 31%-35%, reflecting both volume and pricing drivers. "With a strong order book as well as our expectation for both our total unit ship and our average selling price to increase in fiscal 2026, we are increasing our fiscal 2026 revenue growth estimate to a range of 31% to 35%, or approximately $379 million at the midpoint." -- Fermi Wang, President and CEO The simultaneous growth in ASP and shipments signals Ambarella's expanding value proposition and pricing power, underpinning accelerated topline expansion and margin resilience in fiscal 2026. IoT revenue contributed slightly more than 75% of Q2 FY2026 sales and grew in the low teens quarter-over-quarter, outpacing the automotive segment, which rose in the mid-single digits. Management confirmed the fundamental hardware architecture between automotive and IoT is unified, enabling operational efficiency despite different go-to-market strategies. "Our CPU architecture, our image processing pipeline, our CPU investment, even the online OS side, they are huge in average between each two. So in terms of OpEx expense side, the leverage is very strong. Obviously, the go-to-market strategy from the marketing side is almost sales side. Are different. But we are going to continue to focus on those two areas because I still believe, you know, long term, the time driving continues to drive our strength." -- Fermi Wang, President and CEO This cross-market platform allows Ambarella to efficiently allocate R&D and field engineering resources, fueling rapid IoT expansion while laying groundwork for eventual automotive outperformance as design wins mature post-2027. The company announced its first design win in edge AI infrastructure with the N1655 system-on-chip (SoC), and highlighted Insta360's anti-gravity A1, the world's first 8K 360-degree drone powered by Ambarella's CV5 AI SoC, set to launch globally in January 2026. Management cited robust global demand for these SoCs, especially in emerging robotics and infrastructure applications. "our future vision and strategy. In the rapidly growing robotic drone market, Arashi Vision, also known as Insta360, launched the world's first 8K 360-degree drone on this new anti-gravity brand. Powered by our CV5 AI SoC, this drone features dual lenses on both the top and the bottom, enabling 8K 360-degree video recording. The AI capacity in CV5 is fully utilized in this partially autonomous drone," -- Fermi Wang, President and CEO These wins validate Ambarella's expanding reach beyond traditional security and automotive markets, unlocking higher-ASP opportunities across high-growth, next-generation devices and edge AI infrastructure deployments. For Q3 FY2026, management forecasts revenue of $100 million to $108 million, with strong mid-teen QoQ growth in IoT and mid- to high-single-digit QoQ growth in automotive; gross margin is guided at 60%-61.5% for Q3 FY2026. Fiscal 2026 total revenue growth is projected at 31%-35%, anchored by broadening edge AI adoption and increased ASP. Ambarella remains on track with two-nanometer development, targeting early 2027 customer production.

Ambarella Revenue Jumps 50% in Fiscal Q2 | The Motley Fool

Ambarella (AMBA -1.56%), a fabless semiconductor company known for its video and artificial intelligence (AI) system-on-chips (SoCs), reported notable growth in its Q2 FY2026 results, released on August 28, 2025. Revenue (GAAP) climbed to $95.5 million, marking a 49.9% increase over the prior-year period and surpassing both management's guidance midpoint and consensus estimates. The company returned to non-GAAP profitability with earnings per share of $0.15, compared to a loss in the previous year. Though gross margins contracted and operating expenses grew, management raised its outlook for fiscal 2026 revenue growth to 31-35%. Ambarella designs advanced system-on-chip (SoC) semiconductors mainly for video processing and edge artificial intelligence. These SoCs enable AI-powered capabilities in devices including automotive cameras, driver-assistance systems, security devices, and various industrial or robotics applications. The company operates a fabless model, meaning it focuses on design and partner relationships while outsourcing manufacturing, which helps it remain agile and scale in response to demand. A central focus for the business is leveraging its proprietary CVflow architecture to power AI applications in two key markets: automotive and Internet of Things (IoT). Success in these sectors depends on delivering high performance, low power consumption, and a strong partnership network that helps win multi-year design contracts with equipment manufacturers. The most prominent achievement for the period was a 49.9% year-over-year increase in revenue (GAAP), which exceeded management's guidance and set a new quarterly company record. This growth was attributed to strong demand for advanced edge AI products, especially the newer 5-nanometer (5nm) AI SoCs -- small, energy-efficient chips specifically designed for running AI algorithms. Management noted, "We are experiencing strong secular growth in the edge AI market, with an expanding breadth of applications driving unit demand, often with our higher priced 5nm AI SoCs." In addition to topping revenue targets, non-GAAP net income turned positive, in contrast to a loss in the prior-year period. Gross margins, however, declined to 60.5% (non-GAAP), down from 63.3% in Q2 FY2025. Expenses also remained elevated, largely due to research and development spending of $59.7 million (GAAP, Q2 FY2026) and significant stock-based compensation for employees. Total operating expenses (GAAP) reached $78.2 million, up $3.2 million from the prior-year quarter. While the surge in revenue helped improve profitability on a non-GAAP basis, margin pressure somewhat offset the gains from higher sales volumes. Key company milestones included shipping over 36 million edge AI processors to date, demonstrating Ambarella's growing role as a supplier in edge AI. Product innovations centered around pushing the CVflow-based AI SoCs into a wider set of applications. The quarter also marked upcoming production shipments tied to new wins, including robotic aerial drones (expected by the end of FY2026) and emerging edge infrastructure (expected to enter production in FY2027). These advances point to diversification beyond the company's roots in video security and into fields such as robotics and infrastructure, expanding its addressable market. Ambarella also maintained financial flexibility, ending the quarter with $261.2 million in cash, equivalents, and marketable securities, compared with $219.8 million at the end of Q2 FY2025 -- an 18.8% increase. For Q3 FY2026, management projects revenue in the range of $100.0 million to $108.0 million, with the midpoint, if achieved, representing another record. Gross margin on a non-GAAP basis is expected in the 60.0-61.5% range, which, while stable, remains below the prior year. Non-GAAP operating expenses are expected to rise slightly, tracking ongoing R&D investments. For the full FY2026, leadership raised its revenue growth target to 31-35%, a notable increase from the 19-25% range issued after the prior quarter. If achieved, these results would set all-time highs for both quarterly and annual revenue. Management did not provide explicit guidance on GAAP profitability for FY2026 but signaled that, as long as revenue growth persists, continued non-GAAP profitability is likely. Investors may wish to watch for the pace of margin recovery, the timing of new product launches such as edge infrastructure and robotics platforms, and management's ability to balance rapid growth with profitability as spending remains high.

Why Ambarella Stock Rocketed 17% Higher Today | The Motley Fool

Now is a fine time to be a developer of next-generation semiconductors, as the company's latest quarterly numbers indicate. Edge semiconductor designer Ambarella (AMBA 16.78%) barreled into the weekend on a high note, following its release of a fresh set of quarterly results. On a convincing double beat, the company's stock was justifiably popular, with investors sending its price just about 17% higher in Friday's trading session. For the second quarter of its fiscal 2026, Ambarella collected $95.5 million in revenue, improving that line item by almost 50% year over year. The company's non-GAAP (adjusted) net income didn't rise that dramatically, but it did see a robust increase of 16% to $6.4 million, shaking out to $0.15 per share. Analysts had significantly underestimated this growth potential. On average as a group, they were forecasting $90 million for revenue, and an adjusted, bottom-line profit of $0.05 per share. Ambarella's niche is the edge segment of the market, in which data and software are moved closer to the user's base in order to speed up processing times. It has developed artificial intelligence (AI) solutions for edge computing, and given the current, near-insatiable demand for AI functionalities, that's a fine business to be involved in just now. In the company's earnings release, it pointed out that it has so far shipped over 36 million edge AI processors. It was a beat-and-raise quarter for Ambarella, as the company lifted its guidance for full-year revenue. For the entirety of fiscal 2026 it's now expecting its revenue to increase by 31% to 35% over the 2025 result; the midpoint of this range in dollar terms is around $379 million.

Ambarella raises fiscal 2026 revenue growth target to 31%-35% as edge AI demand accelerates (NASDAQ:AMBA)

New! Get unlimited breaking news with a free Seeking Alpha account " Earnings Call Insights: Ambarella (AMBA) Q2 2026 Management View * CEO Feng-Ming Wang opened by highlighting, "Our strong momentum continued in our second quarter with revenue of $95.5 million, increasing 11% sequentially above the high end of our prior guidance range of $86 million to $94 million." He also announced, "With a strong order book as well as our expectation for both our total unit shipped and our average selling price to increase in fiscal 2026, we are increasing our fiscal 2026 revenue growth estimate to a range of 31% to 35% or approximately $379 million at the midpoint." * Wang reported, "We continue to see very strong demand for our new 5-nanometer AI SoCs in both our existing and emerging edge AI markets, which is driving our firm-wide average ASP price higher." He detailed three rapidly emerging applications: portable video, robotic aerial drones, and edge infrastructure, noting, "We expect to commence high-volume shipments into the robotics market by the end of this fiscal year." * Wang shared major customer wins, such as Arashi Vision launching the Antigravity A1 drone powered by Ambarella's CV5 AI SoC and the company's first win in edge AI infrastructure with the N1-655 SoC. Additional wins included Samsara's AI Multicam platform, Audi and BAIC Stelato S9 for e-mirror functions, and Honeywell's 50 Series security cameras in India. * Wang concluded, "Edge AI is expected to represent about 80% of our total revenue this year." * CFO John Young stated, "For fiscal Q2, revenue was $95.5 million, above the high end of our prior guidance range of $86 million to $94 million, up 11.2% from the prior quarter and up 49.9% year-over-year." He added, "Non-GAAP gross margin for fiscal Q2 was 60.5%, at the low end of our prior guidance range of 60.5% to 62% due to product mix." Outlook * Wang announced, "The midpoint of our new third quarter and the full fiscal year 2026 revenue guidance range represents all-time record quarterly and fiscal year total revenue for Ambarella." * Young provided, "In Q3, we forecast revenue in the range of $100 million to $108 million or $104 million at the midpoint. Sequentially, we expect mid- to high single-digit percent growth in our automotive business with our IoT business up in the mid-teens. For fiscal 2026, we anticipate a revenue growth range of 31% to 35%." * Guidance for fiscal Q3 non-GAAP gross margin is expected to be in the range of 60% to 61.5% and non-GAAP OpEx in the third quarter is anticipated to be in the range of $54 million to $57 million. Financial Results * The company reported, "Q2 net interest and other income was $2.2 million. Q2 non-GAAP tax provision was approximately $200,000. We reported a non-GAAP net profit of $6.4 million or $0.15 per diluted share in Q2." * Cash and marketable securities were $261.2 million at quarter end. Receivables days sales outstanding increased from 31 days in the prior quarter to 40 days, and days of inventory decreased from 98 days to 85 days. Operating cash inflow was $5.5 million, capital expenditures were $4.1 million, and free cash flow was $1.4 million. * WT Microelectronics represented 71% of revenue for the second quarter. Q&A * Christopher Adam Jackson Rolland, Susquehanna: Questioned whether IoT could become a larger focus than automotive. Wang responded that the company will "continue to focus on those two areas," leveraging hardware architecture across both but acknowledged IoT is currently contributing more to income. * Kevin Edward Cassidy, Rosenblatt Securities: Asked about the drone market and process technology. Wang replied, "We will continue to work on the 2-nanometer project and still remain targeted to take our customers to production in early 2027." * Shadi Mitwalli, Needham & Company: Asked about Q3 guidance implying a seasonally down Q4. Wang explained, "Some of the products become driven by consumer cycles, that will definitely explain to you, that's why we are seeing the seasonality based on our guidance." * Liam Yevgeny Pharr, BofA Securities: Asked about M&A rumors and growth sustainability. Wang stated, "We just have no comment on that," and described continued growth for both IoT and automotive. * Kyle Robert Smith, Stifel: Inquired about inventory and customer demand. Wang said, "We haven't seen any inventory build beyond the normal practice." * David O'Connor, BNP Paribas: Asked about automotive ADAS adoption and growth drivers. Wang noted OEMs are focusing on "low end Level 2+ than higher end," while Young estimated growth is "roughly 50-50 between ASP and unit growth." * Auguste Philip Richard, Northland Capital Markets: Requested IoT split between security and nonsecurity. Wang said portable video is "definitely grow the fastest." * Zhihua Yang, Oppenheimer & Co.: Asked if portable video growth is driven by one customer. Wang credited multiple customers but identified Insta360 as the largest. * Richard Cutts Shannon, Craig-Hallum: Asked about the edge infrastructure pipeline. Wang confirmed engagement with "multiple customers, new and old or existing customer with potential design wins." Sentiment Analysis * Analysts' tone was generally positive, focusing on growth, market opportunities, and design wins, but included probing questions on seasonality, sustainability, and M&A rumors. * Management maintained a confident and assertive tone in prepared remarks, emphasizing momentum and strategic execution. During Q&A, Wang and Young provided detailed, occasionally cautious answers, particularly around future automotive growth and inventory checks. Confidence was shown with phrases like, "we are increasing our fiscal 2026 revenue growth estimate." * Compared to the previous quarter, the sentiment among management was more optimistic and assertive, while analysts remained positive but increasingly focused on the sustainability and sources of growth. Quarter-over-Quarter Comparison * The Q2 earnings revealed a higher revenue growth trajectory, with the fiscal 2026 revenue estimate raised from 19%-25% in Q1 to 31%-35% in Q2. * The emphasis on portable video, robotics, and edge infrastructure as new growth engines intensified, with more details provided on customer wins and applications. * IoT's outperformance relative to automotive was more pronounced, and management reiterated plans to increase resource allocation to IoT while maintaining a focus on automotive long-term. * Gross margin guidance was tightened downward slightly due to product mix compared to Q1. * Management's tone shifted from cautiously optimistic in Q1 to overtly confident in Q2, while analysts probed further into long-term sustainability and the potential for market shifts. Risks and Concerns * Management highlighted seasonality in Q4 due to consumer cycles. * No evidence of inventory build-ups was reported, with frequent checks in place. * The automotive sector faces slower OEM program decisions and longer time to revenue, with more rapid growth occurring in other edge AI applications. * Analyst concerns centered on the sustainability of growth, the impact of customer concentration, and the evolving market split between IoT and automotive. * M&A rumors were addressed with no comment from management. Final Takeaway Ambarella's Q2 2026 call signaled a significant acceleration in revenue growth expectations, driven by strong demand and expanding applications for edge AI across IoT, robotics, and infrastructure markets. The company raised its fiscal 2026 revenue growth estimate to a range of 31% to 35%, highlighted record edge AI revenue, and confirmed its leadership position in this technology segment. Management underscored ongoing innovation, a robust customer pipeline, and increased resource allocation for high-growth IoT opportunities, while maintaining a long-term commitment to the automotive market and rigorous inventory oversight. Read the full Earnings Call Transcript More on Ambarella Today's chaos. Tomorrow's opportunity Seeking Alpha helps you make sense of the headlines. New! Get unlimited breaking stock news for free -- so you can stay on track for a stronger financial future.

Ambarella : Q2 F2026 combined 8 28 2025 final

Good afternoon and thank you for joining our second quarter, fiscal year 2026 financial results conference call. On the call with me today is Dr. Fermi Wang, President and CEO, and John Young, CFO. The primary purpose of today's call is to provide you with information regarding the results for our second quarter fiscal year 2026. The discussion today and the responses to your questions will contain forward-looking statements regarding our projected financial results, financial prospects, market growth and demand for our solutions, among other things. These statements are based on currently available information and subject to risks, uncertainties and assumptions. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, our actual results could differ materially from these forward-looking statements. We are under no obligation to update these statements. These risks, uncertainties and assumptions, as well as other information on potential risk factors that could affect our financial results, are more fully described in the documents that we file with the SEC. Before starting the call, I will summarize our investor events scheduled for our 3rd fiscal quarter; Access to our second quarter fiscal year 2026 results press release, transcripts, historical results, SEC filings and a replay of today's call can be found on the Investor Relations page of our website. The content of today's call as well as the materials posted on our website are Ambarella's property and cannot be reproduced or transcribed without our prior written consent. Fermi will now provide a business update for the quarter, John will review the financial results and outlook and then the three of us will be available for your questions. Dr. Fermi Wang, President & CEO Good afternoon and thank you for joining our call today Our strong momentum continued in our second quarter, with revenue of $95.5 million increasing 11% sequentially, above the high-end of our prior guidance range of $86.0 million to $94.0 million. The second quarter results represent the fifth consecutive quarter of record edge AI revenue. Furthermore, I'm proud to say the mid-point of our new third quarter and full year fiscal 2026 revenue guidance ranges represent all-time record quarterly and fiscal year total revenue for Ambarella. In our May 29thearnings call, we increased our fiscal 2026 revenue growth estimate to a range of 19% to 25% or approximately $348 million at the midpoint. With a strong order book, as well as our expectation for both our total units shipped and our average selling price ("ASP") to increase in fiscal 2026, we are increasing our fiscal 2026 revenue growth estimate to a range of 31% to 35%, or approximately $379 million at the midpoint. Needless to say, it is a very exciting time for Ambarella. Fundamentally, after a multi-year period of significant edge AI R&D investment, our broad product portfolio enables us to address the rising breadth of edge AI applications. This increased breadth not only drives our overall unit demand, but we continue to see very strong demand for our new 5 nanometer AI SoCs in both our existing and emerging edge AI markets, which is driving our firmwide average selling price higher ("ASP"). I would like to "double click" on the rising breadth of edge AI applications I mentioned and focus on 3 applications we see as rapidly emerging for us; portable video, robotic aerial drones and the edge infrastructure. Our edge AI revenue began in the enterprise security market more than 5 years ago and was followed by incremental edge AI applications in the smart home, automotive safety and telematics markets, all of which are continuing their unique growth trajectories. Now this year, layered on top is the rising demand for our edge AI SoCs from the portable video market, including action cameras, panorama cameras, and body worn cameras. In addition to the portable video market, we expect to commence high volume shipments into the robotics market by the end of this fiscal year. The unit volume in the robotics market is highly fragmented by applications, form factors and customers, but our technology, products and roadmap have enabled us to win one of the early high volume robotic applications; partially autonomous aerial drones. Portable video and robotics both represent new emerging edge AI applications in Ambarella's traditional market for IoT endpoints. Today we are also announcing our first win in the edge AI infrastructure with our N1-655 SoC. This win is yet another example of the expanding breadth of our edge AI business, and I am encouraged by the interest in our N1 edge AI infrastructure roadmap from both new and existing customers. In the automotive autonomy market, the largest subset of the robotics market, we are actively bidding on OEM projects with our CV3-AD family of advanced 5 nanometer central domain controllers for L2+ to L4 applications. While offering significant lifetime revenue opportunities, the lower frequency of award decisions, OEM program delays and a longer time-to-revenue are causing our other edge AI applications to emerge more rapidly for us. Nevertheless, we remain highly focused on developing this business and we will provide updates on our progress as wins occur.