Ambarella engages Capgemini to help accelerate enterprise adoption of Edge and Physical AI. Capgemini to provide engineering, integration, and industry expertise to support Ambarella's next phase of growth. SANTA CLARA, Calif. and NEW YORK, Sept. 03, 2026 (GLOBE NEWSWIRE) - Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, and Capgemini (Euronext Paris: CAP), the global AI-driven business and technology transformation company, today announced their engagement to accelerate the development and deployment of Edge and Physical AI solutions across smart infrastructure, retail and logistics, industrial automation, healthcare, and automotive sectors. Under the agreement, Capgemini will provide engineering, systems integration, and industry expertise to help accelerate customer adoption of Ambarella's Edge and Physical AI technologies. The work will focus on developing solutions that enable AI processing closer to where data is generated, including in cameras, vehicles, industrial equipment, robotics systems, and other intelligent devices. Capgemini will provide services to help Ambarella ideate and establish a dedicated global Edge and Physical AI Center of Excellence designed to accelerate solution development, proof-of-concept initiatives, technology validation, and deployment readiness for enterprise customers. Capgemini's experts will also work with relevant technology providers and ecosystem participants to help deliver complete solutions suited to enterprise deployment requirements. "Edge and Physical AI represent an important opportunity to extend AI from the data center into cameras, robots, vehicles, machines and other systems that perceive and interact directly with the physical world," said Fermi Wang, President and Chief Executive Officer of Ambarella. "Customers increasingly need full stack solutions that combine AI compute, software, and applications on integrated systems. Our work with Capgemini will help create a scalable path from Ambarella technology to enterprise applications and ultimately, production deployments." With these initiatives Capgemini will help customers worldwide evaluate and deploy AI-enabled solutions tailored to their operational and business needs on Ambarella Platforms. Ray Nath, Head of Sogeti in the US, part of Capgemini, noted, "Organizations are looking for practical ways to deploy AI closer to where critical business decisions are made. We are pleased to engage with Ambarella as they expand adoption of their industry-leading Edge and Physical AI technologies to help clients accelerate innovation across multiple industries." By using Ambarella's Edge and Physical AI technology, delivered through Capgemini's world-class engineering and integration expertise, clients can bring AI capabilities closer to where data is generated, to accelerate the path from concept to production. About Ambarella With an installed base of more than 50 million AI SoC units, Ambarella's products are utilized in a wide variety of physical edge AI applications, spanning edge endpoint and edge infrastructure use cases including physical security, vehicle safety, telematics, autonomy, portable video, aerial drones, and other emerging robotic applications. Building on this footprint, Ambarella offers a full-stack edge AI platform, from highly optimized silicon and programmable software to AI agentic frameworks that coordinate perception, decision-making and control across devices. Ambarella's low-power systems-on-chip (SoCs) integrate proprietary and highly efficient perception and deep learning neural network AI accelerators, enabling electronic systems to become more productive with partial or complete levels of machine autonomy. Investor contact: Louis Gerhardy Tel: +1 408 636 2310 Email: [email protected] About Capgemini Capgemini is an AI-powered global business and technology transformation partner, delivering tangible business value. We imagine the future of organizations and make it real with AI, technology, and people. With our strong heritage of nearly 60 years, we are a responsible and diverse group of over 420,000 team members in more than 50 countries. We deliver end-to-end services and solutions with our deep industry expertise and strong partner ecosystem, leveraging our capabilities across strategy, technology, design, engineering and business operations. The Group reported 2025 global revenues of €22.5 billion. Press contact: Martina Cuccioli Tel.: + 1 630 689 8349 E-mail: [email protected] Legal Disclaimer: EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Ambarella Q2 earnings call highlights. September 3, 2026 Key points. * Ambarella's fiscal Q2 revenue rose 13.2% year over year to $108.1 million, driven by record AI revenue and strong automotive and IoT demand. Automotive revenue reached a new high, while non-GAAP EPS was $0.18. * The company forecast fiscal Q3 revenue of $115 million to $124 million and authorized a new $50 million stock-repurchase program. Ambarella also expects to maintain its 59%-62% long-term gross-margin target despite rising supply-chain costs. * Ambarella raised its fiscal 2032 serviceable market forecast to $22.9 billion, citing expansion into edge infrastructure and AI accelerators such as the sampling X7. Partnerships with Capgemini and Macnica are intended to broaden enterprise and midsize-customer reach, though meaningful revenue is expected in two to three years. * MarketBeat previews top five stocks to own in October. Ambarella NASDAQ: AMBA reported fiscal second-quarter revenue of $108.1 million, up 7.7% sequentially and 13.2% from a year earlier, as record AI revenue and continued demand from automotive and IoT customers supported results. The company posted non-GAAP diluted earnings per share of $0.18, or non-GAAP net income of $8.2 million. Revenue came in slightly above the midpoint of Ambarella's prior outlook of $105 million to $111 million. Chief Financial Officer John Young said automotive revenue reached a new record, supported by commercial-vehicle adoption of AI technology. Automotive revenue grew slightly faster than the company's IoT business, where enterprise-oriented operations outperformed consumer-led businesses. Margins, cash flow and third-quarter outlook. Non-GAAP gross margin was 59.3%, below the midpoint of the company's prior 59% to 60.5% forecast. Non-GAAP operating expenses were $57.4 million, slightly below the midpoint of its projected $56 million to $59 million range. Ambarella ended the quarter with $272.3 million in cash and marketable securities, down $5.5 million sequentially but up $11.1 million from a year earlier. The sequential decline primarily reflected higher payments for intellectual-property licenses. Operating cash flow was negative $260,000, while free cash flow was negative $7.1 million after $6.8 million in capital expenditures. The board authorized a new $50 million stock-repurchase program through June 30, 2027. Ambarella did not repurchase shares during the fiscal second quarter. For the fiscal third quarter ending Oct. 31, Ambarella forecast revenue of $115 million to $124 million, with a midpoint of $119.5 million. The company expects IoT physical-AI demand to lead growth at the midpoint. It forecast non-GAAP gross margin of 59% to 60% and non-GAAP operating expenses of $56.5 million to $59.5 million. Memory constraints remain an industry concern. President and CEO Fermi Wang said rising memory prices and limited supply are affecting the wider technology supply chain as memory vendors prioritize AI data-center demand. Ambarella said it is helping customers pursue workarounds and expects to pass through its own higher supply-chain costs to protect its long-term gross-margin target of 59% to 62%. Discover more Financial Markets News Derivatives Analyst Ratings Analysis Wang clarified during the question-and-answer session that memory costs do not directly affect Ambarella's gross margin because the company does not buy and resell memory. Instead, the concern is that higher memory prices could affect customers' product volumes and, in turn, their chip purchases. The company said it saw little effect from memory constraints on second- and third-quarter revenue, but it is monitoring potential impacts in the fourth quarter. Wang said that, absent a material memory-related effect, investors should expect normal fourth-quarter seasonality. Expanded market forecast and edge-infrastructure push. Ambarella raised its five-year serviceable available market forecast to $22.9 billion in fiscal 2032, from $8.5 billion in fiscal 2027, representing an estimated compound annual growth rate of about 20%. The company said IoT markets are expected to account for roughly 70% of the terminal-year opportunity. Wang said the largest driver of the revised forecast is the company's expansion into edge infrastructure, where enterprises use on-premise AI inference hardware to improve operational efficiency. He identified security, retail, lodging, logistics and healthcare among the potential markets. The company is developing additional AI systems-on-chip products and a standalone AI accelerator line for edge infrastructure. Wang previewed the X7 accelerator, which is sampling and is expected to secure initial design wins in edge-infrastructure applications. The accelerator can serve as a co-processor for Arm- and x86-based host systems and can also be paired with Ambarella's own chips. Wang said the X7 is designed to operate in a roughly 4- to 5-watt power envelope and requires a smaller memory footprint than GPU-based alternatives for certain workloads. He acknowledged that the market includes competitors such as NVIDIA and Qualcomm as well as numerous startups, but said Ambarella intends to compete on power efficiency, cost and its hardware-software platform. Partners and semi-custom opportunities. Ambarella announced two partnerships intended to establish an indirect sales channel: a strategic partnership with Capgemini and a seven-year agreement with technical distributor Macnica. The company said the relationships are designed to expand access to customers that have largely been unserved by Ambarella's historically direct-sales model. Capgemini is expected to focus on larger enterprise deployments, while Macnica is expected to aggregate smaller and midsize customers in fragmented markets. Both partners will use Ambarella's Cooper development platform, according to Wang. Management said meaningful revenue from the indirect-channel effort is expected in two to three years, though smaller design wins could generate revenue sooner. Wang said the company expects each partnership could produce about $500 million in revenue over seven years, while Customer Growth Officer Muneyb Minhazuddin said the estimates reflect different models: Macnica as a volume-oriented distribution opportunity and Capgemini as a higher-value, more complex enterprise opportunity. Ambarella also said its first semi-custom project, a 2-nanometer CVAS system-on-chip, remains expected to generate initial production revenue in fiscal 2028. Young said a separate customer-development project that resulted in a $9 million reduction in GAAP research-and-development expense was not among the semi-custom projects and involved an automotive autonomy customer. During the quarter, the company cited customer wins and engagements spanning quadruped robotics, enterprise video intercoms, trail cameras, AI monitoring, driver monitoring and camera-monitoring systems. Wang said Ambarella has added to the robotics design-win pipeline discussed in the prior quarter and raised its related revenue target, though the company did not provide updated figures. About Ambarella (NASDAQ:AMBA). Ambarella, Inc is a global semiconductor company headquartered in Santa Clara, California, specializing in video compression, image processing and computer vision technologies. The company designs low-power, high-definition system-on-chip (SoC) solutions that enable the capture, processing and streaming of video in a variety of embedded applications. Ambarella's platforms combine advanced video encoding, multi-core central processing units and hardware accelerators to deliver high-resolution imaging with low power consumption. Ambarella's product portfolio caters to multiple markets, including security and surveillance, automotive vision, wearable cameras, drones and robotics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Ambarella, you'll want to hear this. 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NXP in talks to buy chip developer Ambarella, FT reports. 01 Aug 2026 01:06AM (Updated: 01 Aug 2026 01:52AM) Add CNA as a trusted source to help Google better understand and surface our content in search results. July 31: NXP Semiconductors is in talks to buy chip designer Ambarella, the Financial Times reported on Friday, citing people familiar with the matter. Shares of Ambarella, which has a market capitalization of $3.25 billion, jumped about 19 per cent, while NXP shares fell more than 3 per cent, following the report. - A potential deal can bolster NXP's capabilities in software-defined vehicles, radar and electrification, as Ambarella develops low-power AI chips and software for edge devices such as cameras, vehicles and robotics. - Discussions are ongoing and might not lead to a transaction, FT said. - NXP declined a Reuters requests for comment, while Ambarella did not immediately respond. - The development comes after NXP forecast quarterly revenue above analysts' estimates on Tuesday, signaling strong demand for its chips in automotive, industrial and data-center markets.