Wall Street wasn't thrilled with the latest earnings update from 's (NASDAQ: AMBA) management team. The stock dropped after the computer vision tech specialist reported lower first-quarter sales and earnings as a cyclical downturn continued to impact the semiconductor industry.

Yet selling conditions are sure to improve as supply and demand levels balance. In the meantime, Ambarella is busy developing its latest generation of AI-enabled computer vision tech to support fast-growing industries like autonomous driving. With that positive potential in mind, let's look at whether investors should try to take advantage of the stock's recent slump and buy shares today.

Ambarella's Q1 update showed no impending end to the poor selling conditions that have hurt sales in recent quarters. Inventory is too high across several semiconductor niches, and weaker demand is keeping many of its customers cautious on spending. Sales through late April fell 31%, a much worse result than the prior quarter's 8% drop.

Continue reading

Source Fool.com