Investors in the edge artificial intelligence and vision processor are pleased with Ambarella (AMBA) today. The company posted second-quarter results that exceeded expectations. In after-hours trade, AMBA stock gained over 18%.
Ambarella reported revenue of $63.73 million, up by 2.6% Y/Y. In Q3, however, revenue of $77 million to $81 million is above the $69 million that analysts expected. CEO Fermi Want said that the company is now realizing initial revenue from certain IoT and automotive customers.
In the cybersecurity market, SentinelOne (S) reported a penny in non-GAAP EPS. Revenue increased by 33.1% Y/Y to $198.9 million. Guidance is disappointing. The firm failed to capitalize on CrowdStrike’s (CRWD) global outage. It expects new annual recurring revenue to fall on a Y/Y basis.
Still, the long-term prospects are in the right direction. SentinelOne will eventually post profits, which will lift the stock price.
In the retail sector, Nordstrom (JWN) will trade back to its $22-$23 trading range. The firm posted Q2 non-GAAP EPS of $0.96. For the fiscal year, the firm expects an EPS of $1.40 to $1.70.
Nordstrom’s 3% increase in revenue is encouraging. Markets will recognize the undervaluation in JWN stock. This would lift the stock to the $24-$28 range, a price not seen since 2022-2023.
