Semiconductor products from (NASDAQ: AMBA) are used in Internet-of-Things (IoT) devices and cars, among other things. But right now, consumer demand is generally weak, and companies are trying to clean out old inventory, meaning they need fewer products from Ambarella to build new inventory.

On Aug. 29, Ambarella reported financial results for its fiscal second quarter of 2024, and that's the gist of how the quarter went. Revenue fell 23% year over year to $62.1 million as its customers reduced inventory. And lower demand resulted in steeper losses for the company. It reported a net loss of $31.2 million in Q2, down from a net loss of $23.7 million in the prior-year quarter.

Lackluster financial results and uninspiring commentary from management explain why Ambarella stock was down 19% as of noon ET.

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Source Fool.com