VR Tech Stocks to Buy: Ambarella (AMBA)
Not only does it supply for the automotive industry, but it is embracing VR. At CES, AMBA introduced the industry’s first 8K camera SoC (system on a chip). Used in high-end drones, the video camera supports 360-degree capture and virtual reality cameras. Ambarella forecasts VR cameras will start ramping up this year.
Though it forecast flat revenue growth for 2017, VR is clearly a promising market that will offset the weak wearable sports camera sales made by GoPro. AMBA admits the VR market is very new. Sales will pick up, but it is still a small part of total revenue. Ambarella is optimistic but cautious about the market. Consumer demand and supplier adoption for VR technology will determine how sales do this year.