Ambarella's stock price plummeted 5.47% in after-hours trading on Thursday, following the release of its quarterly financial results and forward guidance.

The semiconductor company reported that it expects revenue growth to slow significantly this fiscal year, guiding for an increase of 10% to 15%. This outlook contrasts with the 37% revenue growth the company achieved in the previous fiscal year, which marked an annual record. While Ambarella's fourth-quarter results showed improvement—with revenue climbing 20% to $100.9 million, slightly beating analyst estimates, and a narrower net loss—the market reacted negatively to the projected deceleration in growth.

CEO Fermi Wang noted that edge artificial intelligence systems-on-chips represented a majority of overall revenue, driven by a range of physical AI applications. For the current quarter, Ambarella expects revenue between $97 million and $103 million, roughly in line with analyst forecasts.