Memory Constraints Cloud Fourth Quarter
Near-term embedded-semiconductor demand remains exposed to bill-of-material inflation and memory availability, despite little reported revenue impact in Q2 and Q3. The risk is not chip gross margin directly, but lower customer unit volumes and downstream component orders.
But the real question for us is how that memory cost can, because our customer needs to increase the price, whether that will reduce the total volume they can sell and therefore reduce the total ordering to us. That's something we need to continue to observe. In Q2 and Q3, we see little impact on our revenue because of memory situation. We continue to watch for the Q4.
Who it touches
- AMBAbearish
Management said higher memory costs could reduce customer end-product volumes and consequently orders in Q4.
About this signal
- Company
- Ambarella Inc
- Category
- guidance
- Call
- Q2 FY2027