Ambarella has launched its game-changing AMBA CV3-AD685 AI domain control system-on-chip (SoC) in January 2023, poised to be the driving force behind Kodiak Robotics’ fleet of autonomous vehicles. This breakthrough SoC was initially designed for Level 2+ and Level 4 autonomous vehicles.
Level 2+ autonomous vehicles are equipped with advanced features such as adaptive cruise control, lane centering, and automatic braking, while Level 4 vehicles possess even higher levels of self-driving capability.
CV3-AD685: A Paradigm Shift in Autonomy
The revolutionary CV3-AD685 AI engine represents a significant leap from its predecessor (CV2 SoCs). It delivers a staggering 20-fold increase in neural network processing speed. This enhanced engine boasts advanced capabilities tailored to handle a myriad of tasks essential for fully autonomous driving, including computer vision, high-definition radar, deep fusion, and planning.
Impressive Capabilities of CV3-AD685
The CV3-AD685 harnesses an efficient AI neural vector processor, facilitating rapid and low-power neural network processing. Bolstering its prowess, this processor has been refined to tackle the latest iterations of neural networks, encompassing transformer networks. Furthermore, the CV3-AD685 features a general vector processor, meticulously optimized for computer vision tasks, with bespoke enhancements tailored for high-definition radar processing.
Kodiak’s decision to adopt this SoC stems from its potential to deliver reliability, cost-effectiveness, and compactness, providing an integrated embedded solution while optimizing performance.
Resilience in an Accelerating Market for Autonomous Vehicles
Ambarella’s robust growth trajectory is underpinned by the escalating demand for camera-based SoCs and computer vision technology in the realm of Automated Driver Assistance Systems (ADAS). The burgeoning involvement of automakers in ADAS development continues to drive up the demand for the company’s offerings.
Ambarella has forged partnerships with various entities in the autonomous driving sector, including Applied Intuition, Continental, and Kodiak. Notably, Kodiak previously leveraged Ambarella’s CV2 technology, enabling the company to surpass 300,000 miles and conduct over 875 deliveries. With the CV2, Kodiak managed to maintain exceptional image quality in challenging weather conditions, ensuring the safe and timely delivery of freight to its clientele.
Moreover, the collaboration between Ambarella and Continental has led to the development of adaptive hardware and software solutions, driven by artificial intelligence for assisted and automated driving. Continental has integrated Ambarella’s CV3-AD SoC into its autonomous mobility endeavors, marking a significant stride in AMBA’s technological footprint in the autonomous driving landscape.
Continued Advancement in AI SoC Technology
Ambarella’s relentless focus on developing and delivering AI SoC-based computer vision solutions, branded as CVFlow, has garnered commendation from discerning customers. The AI inference processors based on the CVFlow architecture, encompassing CV3, CV2, CV5, CV25, and CV22 SoCs, are receiving favorable feedback from the market.
Nevertheless, the company faces immediate challenges, including dwindling customer inventories and tepid demand in specific market segments. Consequently, Ambarella reported lower-than-anticipated revenues for the third quarter of fiscal 2024, with expectations of these challenges persisting in the near term, impacting its financial performance.
Zacks Rank & Stocks to Consider
At present, Ambarella holds a Zacks Rank #3 (Hold). Over the past year, AMBA shares have declined by 24.2%.
Some more promising stocks in the broader technology sector include Kanzhun BZ, Ceridian HCM CDAY, and Everbridge EVBG, each boasting a Zacks Rank #1 (Strong Buy) at present. Details of these stocks can be accessed here.
Through a downward revision of 2 cents to 16 cents per share for Kanzhun’s fourth-quarter 2023 earnings in the past 30 days, BZ witnessed a 33.6% drop in shares over the past year. Conversely, the Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter 2023 earnings has been revised upward by a penny to 32 cents, with CDAY shares gaining 4.7% over the past year. Notably, the Zacks Consensus Estimate for Everbridge’s fourth-quarter 2023 earnings experienced a one-cent decline in the past 60 days to 49 cents per share, alongside a 20.1% decline in EVBG shares over the past year.
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. While NVIDIA remains robust, our new top chip stock possesses substantial growth potential.
With robust earnings growth and an expanding customer base, it’s primed to capitalize on the soaring demand for Artificial Intelligence, Machine Learning, and Internet of Things. The global semiconductor manufacturing sector is projected to surge from $452 billion in 2021 to $803 billion by 2028.
Access This Stock Now for Free >>
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
Everbridge, Inc. (EVBG) : Free Stock Analysis Report
