Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD), video capture, analysis, sharing, and display worldwide. The company’s system-on-a-chip designs integrated HD video processing, image processing, computer vision functionality, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Ambarella Inc. fell as much as 14% on reports that a number of Chinese video surveillance companies are at risk of being placed on a U.S. blacklist.
Morgan Stanley analysts led by Joseph Moore wrote in a note that one of those surveillance companies, Hangzhou Hikvision Digital Technology Co., likely makes up a high-teens percentage of Ambarella’s total revenue. The analysts said that Ambarella likely has similar exposure to Zhejiang Dahua Technology Co., which is also a focus of U.S. lawmakers. Moore said that ON Semiconductor Corp. has low-single-digit revenue exposure to Hikvision as well.