Ambarella has dropped another five or six points, and this round of correction doesn't quite match up with the fundamentals — last quarter's revenue was up 20% year-over-year, and EPS also exceeded expectations, but the stock price has been trending downward ever since the earnings report.

What's really weighing it down is the ITC reaffirming GoPro's patent claims against Insta360, and the Insta360 sports camera supply chain uses Ambarella's chips. The market is worried about downstream shipments being affected. The growth logic of edge AI vision hasn't been broken, but the valuation has already priced in high expectations, lacking an order that can reignite the imagination.