The $3 Billion Camera Chip Manufacturer - Ambarella

Author: John Honovich, Published on Jun 23, 2015

A key supplier to Avigilon, Bosch, Dropcam, Hikvision and many other notable video surveillance manufacturers is in the news - first for its sky rocketing stock price and now becaue of the fierce debate on its valuation.

In this note, we examine Ambarella.

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Comments (8)

3 billion seems high. I can't even find them here in last year's "Yole". I'm guessing because their chips are so expensive.

How much are they are surveillance play? Do they say? Btw, here's the "Yole" by application. Security is the smallish Earth like planet, far left middle.

They are not a sensor manufacturer, ergo why you cannot find them on that chart. They produce system on a chips / encoders and partner with the Omnivisons of the world.

That would explain it. :)

Who are their competitors? Just SonySung?

From their 10K:

"Our primary competitors in the wearable sports and IP security camera markets include HiSilicon Technologies Co., Ltd., Geo Semiconductor, Inc., Grain Media, Inc., Movidius Ltd., Socionext Inc., a new entity created from the merger of system LSI businesses of Fujitsu Limited and Panasonic Corporation, and Texas Instruments Incorporated, as well as vertically integrated divisions of consumer device OEMs, including Canon Inc. and Sony Corporation"

With all the uproar about Huawei Networking equipment being controlled by the Chinese state, it's interesting there has been little or no opposition of Huawei owned HiSilicon's prominence in security cameras.

I wonder if the SOC gets to put the destination address on the packet....

The 'Chinese' own Omnivision too.

This is a better chart.

Many outside the industry still assume security is a hot growth market. They’re likely to hear that they’re a supplier to these big name security manufacturers and assume there’s growth there. From that respect I can understand (some) over-valuation.

We are all going to go to H265 eventually—even if the bandwidth savings are being over hyped. In that regard they’re ahead (for now) but will be under a lot of pressure if they can’t compete on price and when other major suppliers get on board.

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