David O'Connor's questions to AMBARELLA (AMBA) leadership • Q2 2026
Question
David O'Connor from BNP Paribas asked about the current sentiment among automotive OEMs regarding L2+ adoption, given previous trends of optimizing for price. He also requested a breakdown of the year-over-year revenue growth between unit volume and average selling price (ASP).
Answer
CEO Fermi Wang confirmed that OEMs continue to focus on cost and safety, leading to more interest in lower-end L2+ and ADAS functions rather than high-end features. VP Louis Gerhardy reiterated that while the lifetime revenue opportunity is large, the frequency of decisions is lower. In response to the second question, CFO John Young stated that the company's strong revenue growth this year is estimated to be driven roughly 50/50 by increases in unit volume and ASP.