Is Ambarella an Underappreciated Artificial Intelligence Chip Stock?

Ambarella (NASDAQ: AMBA), which produces image processing SoCs (system on chips) and computer vision chips, isn't usually mentioned in conversations about artificial intelligence (AI) chips, which often revolve around bigger chipmakers like NVIDIA (NASDAQ: NVDA).

Nonetheless, Ambarella's management mentioned "AI" over a dozen times during its latest conference call on Sept. 2. Let's take a closer look at Ambarella's AI efforts, whether or not they'll support its long-term growth, and if they make it an underappreciated play on a high-growth market.

Ambarella initially caught Wall Street's attention by supplying image processing SoCs to GoPro (NASDAQ: GPRO). GoPro's growth boosted Ambarella's stock price to nearly $120 by mid-2015, but those gains faded as GoPro's growth stalled out.

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Source Fool.com