Sean O'Laughlin's questions to Ambarella Inc (AMBA) leadership • Q2 2025
Question
Speaking for Matt Ramsey, Sean O'Laughlin asked about the future of the traditional legacy video processor business and whether it could be a growth lever. He also inquired about the gross margin profile of new products on advanced nodes, considering potential foundry price increases.
Answer
CEO Fermi Wang stated that the company is no longer investing in new legacy video processors, so revenue is not expected to grow, but the rate of decline should slow significantly. CFO John Young addressed margins, stating they do not expect the profile to change significantly on new nodes. He reiterated the long-term target of 59-62%, which will be influenced more by the mix of business (like automotive) than by foundry costs.