Ambarella's stock plummeted 16.70% during intraday trading on Friday, following the release of the company's fourth-quarter financial results and forward-looking guidance.
The semiconductor company reported quarterly revenue and earnings that exceeded analyst expectations, but investors focused on the company's projection that revenue growth would slow to a range of 10% to 15% for the current fiscal year. This represents a significant deceleration from the 37% revenue growth Ambarella achieved in the previous fiscal year.
CEO Fermi Wang noted that edge AI systems-on-chips represented a majority of the company's revenue, but the market reacted negatively to the anticipated slowdown in growth momentum, driving the stock lower.
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