Ambarella (AMBA.US) shares fell about 4% on Wednesday after the chipmaker issued disappointing second quarter guidance, saying its near-term outlook was being hurt by China’s Covid lockdowns.
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Company now expects second-quarter revenue of $78-82 million, well below the consensus of $91.5 million.
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"Despite this, our confidence in our AI processor strategy, opportunity and business remains very high. We are excited to have received the first silicon of CV3, our first central domain controller, and we expect it will be sampled to key customers over the summer and demonstrate a significant leadership position in both performance and power,” added CEO Wang.
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Weak financial outlook overshadowed better than expected first quarter results. The semiconductor company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.07. Revenue of $90.31 million topped analysts’ estimate of $90.09 million.
Ambarella (AMBA.US) stock fell over 63% from its all-time high from November 2021 and tested support at $65.90. Last week bulls launched an upward correction and broke above upper limit of the triangle formation. However bullish momentum faded away and stock resumed downward move yesterday. Sentiment change may require a break above the major resistance at $107.75. Source: xStation5
