Ambarella (AMBA) Conference presentation summary

Strategic priorities and market expansion

• Shipped over 50 million edge AI SoCs as of July 2026, reflecting strong market adoption and execution of new go-to-market strategies, including 7-year agreements with Macnica and Capgemini to expand indirect sales channels.

• Introduction of the first stand-alone AI Accelerator, X7, and expansion into higher-value products are driving an increase in the 5-year serviceable market (SAM) forecast for edge AI and physical AI.

• Edge AI now constitutes the majority of revenue, with a global presence and approximately 950 employees worldwide.

Technology leadership and product innovation

• Sustained innovation in edge AI, with a product roadmap advancing from 10nm and 5nm to 4nm and 2nm SoCs, supporting both CNN and transformer AI networks.

• The Cooper Developer Platform offers a comprehensive AI SoC and software ecosystem, supporting a wide range of applications from security cameras to robotics and automotive modules.

• Third-generation AI accelerators embedded in new SoCs enable advanced AI reasoning and vision applications, supporting models with up to 34 billion parameters.

• Highly programmable edge AI platform allows customers flexibility across diverse AI workloads, with scalable solutions for new markets and minimal incremental investment.

Financial performance and outlook

• Q2 F2027 revenue was $108.1M, slightly above guidance midpoint, with non-GAAP gross margin at 59.3% and EPS of $0.18.

• Q3 F2027 revenue guidance is $115.0M to $124.0M, with IoT-led growth and gross margin expected between 59.0% and 60.0%.

• Average selling price (ASP) for SoCs increased ~15% in F2026 versus F2025, driven by higher AI workload complexity and demand for more powerful edge AI solutions.

• Plans to pass rising supply chain costs to customers while maintaining long-term gross margin targets of 59.0% to 62.0%.