AMBA Revenue Estimates for Next Fiscal Year data by YCharts
The AI computer vision market is poised for significant growth in the next three years, suggesting that Ambarella may deliver the strong growth anticipated by Wall Street. The company could maintain its positive momentum for an extended period, boasting an automotive revenue pipeline of $2.2 billion through fiscal year 2031. With the potential expansion of AI computer vision processors into consumer cameras and security applications, Ambarella has ample opportunity for substantial long-term business growth.
Lumentum Holdings
The increasing demand for high-speed data transmission in AI servers is propelling robust growth in the networking equipment market. Predictions indicate that spending on generative AI networking equipment could rise by 34% annually between 2023 and 2028, reaching $34 billion in annual revenue by the end of the forecast period.
Benefiting from this trend, Lumentum Holdings witnessed a positive turnaround in financial performance last quarter, with first-quarter fiscal 2025 revenue climbing 6% year over year to $337 million. Notably, this improvement contrasts with a 23% decline in fiscal 2024 revenue due to soft demand from cloud, networking, and industrial segments.
Cloud and networking revenue surged 23% year over year in fiscal Q1 2025, offsetting weakness in the industrial segment and positioning Lumentum for stronger growth. The company highlights a growing cloud customer base, including new hyperscale clients ordering lasers for high-speed data transmission in AI servers. Lumentum is also expanding manufacturing capacity to meet increased demand.
Analysts project revenue of $390 million for the current quarter, a 6% improvement over the prior year, with expectations of further growth as the fiscal year progresses. Consensus estimates anticipate a 17% revenue increase to $1.59 billion in fiscal 2025, followed by continued strong growth in the subsequent fiscal year.
Anticipated robust top-line growth is expected to translate to a 56% increase in Lumentum’s earnings in the current fiscal year to $1.58 per share, with healthy growth projected in the following years as well. As Lumentum’s earnings power improves, the market may reward the stock with upward momentum, offering investors an opportunity to capitalize on the promising future of its cloud and networking business driven by AI.
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*Stock Advisor returns as of January 13, 2025
Harsh Chauhan holds no positions in any of the mentioned stocks. The Motley Fool holds positions in and recommends Nvidia. The Motley Fool also endorses Lumentum. Our commitment to transparency is reflected in The Motley Fool’s disclosure policy.
