From Nasdaq: 2025-01-18 16:00:00

Nvidia stock has surged nearly 800% over the past two years due to high demand for data center graphics cards, but recent months have seen a 1% decline despite strong results and guidance. Meanwhile, smaller chipmakers Ambarella and Lumentum have seen gains of 25% and 23% respectively in the past three months, driven by AI applications in automotive and IoT sectors. Ambarella’s revenue grew 63% YoY in Q3 2025, with strong demand expected to continue. Lumentum’s revenue is up 6% YoY in Q1 2025, with cloud and networking segments driving growth and earnings expected to jump 56% this fiscal year.

Investors should consider the potential of AI-driven growth in Ambarella and Lumentum, as both companies are poised for significant expansion in their respective markets. Ambarella’s AI computer vision processor market is expected to grow to $45.7 billion by 2028, with strong demand for its CV5 processor driving revenue growth. Lumentum is benefiting from increased demand for high-speed data transmission in AI servers, with revenue growth expected to continue due to expanded manufacturing capacity and new customer acquisitions in the cloud segment.

For investors seeking opportunities in tech stocks, considering the growth potential in AI-driven sectors like automotive, IoT, and networking could lead to long-term gains. Ambarella and Lumentum’s positive financial performance and market outlook indicate a strong position for both companies in the AI market, making them attractive investment options for those looking to capitalize on the AI revolution.



Read more at Nasdaq: These 2 Artificial Intelligence (AI) Stocks Are Outpacing Nvidia’s, and They Can Still Soar Higher