Ambarella's (AMBA) CV3-AD685 AI SoC to Power Kodiak Vehicles
Ambarella’s AMBA CV3-AD685 AI domain control system-on-chip (SoC), introduced in January 2023, is set to power Kodiak Robotics’ autonomous vehicles. CV3-AD685 was first introduced for Level 2+ and Level 4 autonomous vehicles.
Level 2+ autonomous vehicles have capabilities like adaptive cruise control, lane centering and automatic braking, and Level 4 vehicles come with even higher levels of self-driving capability.
The new CV3-AD685 AI engine is a major leap forward from the previous version (CV2 SoCs). It is 20 times faster at processing neural networks. This upgraded engine has added capabilities for handling various tasks required for fully autonomous driving like computer vision, high-definition radar, deep fusion and planning.
Ambarella, Inc. Price and Consensus
Ambarella, Inc. price-consensus-chart | Ambarella, Inc. Quote
The CV3-AD685 uses an efficient AI neural vector processor for fast and low-power neural network processing. This processor has been improved to handle the latest types of neural networks, including transformer networks. Additionally, the CV3-AD685 has a general vector processor, specifically optimized for computer vision tasks, with enhancements tailored for high-definition radar processing
Kodiak selected this SoC for its capability to benefit from its reliability, reasonable costing and compactness, which will provide a comprehensive embedded solution while optimizing performance.
Growing Autonomous Vehicle Market Aids Ambarella
The company’s growth is supported by a significant need for camera-based SoCs and computer vision technology in the Automated Driver Assistance Systems (ADAS) segment. There is a continuous growth in the number of automakers who are taking part in the development of ADAS, consistently driving up the demand for the company’s offerings.
AMBA has collaborated with various companies in the autonomous driving domain, including Applied Intuition, Continental and Kodiak. Previously, Kodiak partnered with Ambarella to utilize the latter's CV2 technology, enabling Kodiak to surpass 300,000 miles and complete more than 875 loads. With the CV2, Kodiak sustains excellent image quality in adverse weather conditions, such as rain, fog and darkness, ensuring the safe and punctual delivery of freight to its customers.
Ambarella and Continental have been working together to create adaptable hardware and software solutions, driven by artificial intelligence for assisted and automated driving. Continental is utilizing Ambarella's CV3-AD SoC to achieve autonomous mobility. This collaboration resulted in the integration of AMBA's energy-efficient SoC family into its ADAS.
AMBA continues to make strides in developing and delivering computer video solutions centered around AI SoCs called CVFlow. The AI inference processors based on the CVFlow architecture, including CV3, CV2, CV5, CV25 and CV22 SoCs, are gaining positive feedback from customers.
However, the company is facing some near-term challenges that include customers reducing their inventory and weak demand in specific market segments. These factors have led to lower-than-expected revenues for the third quarter of fiscal 2024 and the company expects these challenges to persist in the near future, impacting its financial performance.
Zacks Rank & Stocks to Consider
Currently, Ambarella carries a Zacks Rank #3 (Hold). AMBA shares have declined 24.2% in the past year.
Some better-ranked stocks from the broader technology sector are Kanzhun BZ, Ceridian HCM CDAY and Everbridge EVBG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kanzhun's fourth-quarter 2023 earnings has been revised downward by 2 cents to 16 cents per share in the past 30 days. Shares of BZ have declined 33.6% in the past year.
The Zacks Consensus Estimate for Ceridian HCM’s fourth-quarter 2023 earnings has been revised by a penny northward to 32 cents per share in the past 90 days. Shares of CDAY have gained 4.7% in the past year.
The Zacks Consensus Estimate for Everbridge’s fourth-quarter 2023 earnings has declined by a penny in the past 60 days to 49 cents per share. Shares of EVBG have declined 20.1% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KANZHUN LIMITED Sponsored ADR (BZ) : Free Stock Analysis Report
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
Everbridge, Inc. (EVBG) : Free Stock Analysis Report
Ceridian HCM (CDAY) : Free Stock Analysis Report
