Ambarella's stock experienced a significant 12.45% decline in post-market trading on Thursday, following the release of its quarterly financial results and forward-looking guidance.

The semiconductor company reported fourth-quarter revenue of $100.9 million, a 20% year-over-year increase that slightly exceeded analyst expectations. However, the market reacted negatively to the company's outlook for the current fiscal year, which projects revenue growth to slow to a range of 10% to 15%. This guidance represents a notable deceleration from the 37% revenue growth Ambarella achieved in the previous fiscal year, which set a new annual record.

CEO Fermi Wang noted that edge artificial intelligence systems-on-chips represented a majority of the company's overall revenue, driven by various physical AI applications. Despite the strong performance in edge AI and improved quarterly results, investors focused on the anticipated slowdown in growth momentum for the coming year.