Ambarella develops low-power, high-definition video and AI vision system-on-chip solutions used in security cameras, automotive ADAS, robotics, and consumer devices. In the quarter ending April 30, 2025, it posted revenue of $85.9 million and non-GAAP EPS of $0.07, both ahead of Street estimates, yet reported a GAAP loss of $0.58 per share and guided next-quarter revenue only modestly higher (-$86 M to $94 M).

Key reasons AMBA’s stock has been under pressure

• Modest near-term guidance
  Although Q1 beat on the top and bottom lines, Ambarella’s outlook implies only mid-single-digit sequential revenue growth—below investor hopes for a stronger ramp from its new CV5/CV7 AI SoCs.
• Broader semiconductor headwinds
  The PHLX Semiconductor Index is down about 5.3 % year-to-date, reflecting trade-tariff uncertainty, inventory corrections at end markets, and macroeconomic concerns.
• Rising bearish sentiment
  Short interest in AMBA shares climbed 19 % in March to 1.63 million shares (4.1 % of float), signaling growing skepticism among traders.
• Profit-taking after strong rally
  AMBA stock has surged roughly 27 % over the past year, making it vulnerable to position-squaring amid the cautious outlook and sector pullback.

Bottom line:
While Ambarella’s technology roadmap remains promising—especially its edge AI vision chips—near-term revenue guidance, a challenging semiconductor backdrop, and elevated short interest have combined to sap investor enthusiasm and pressure the stock.

SentinelOne (S) slumped after posting fiscal 1Q26 (Apr 30) results. Revenue rose 23 % Y/Y to $229 m, roughly matching the $228 m consensus, and adjusted EPS landed at $0.02. But management lowered full-year revenue guidance to $996-$1,001 m from $1.007-$1.012 b and reported annual-recurring revenue of $948 m, both below expectations, blaming elongated sales cycles and cautious enterprise budgets. The reset sent the shares down about 13 % to $17 in early trade, erasing much of their year-to-date gain.

By contrast, larger rival CrowdStrike (CRWD) continues to out-execute. Its January-ended 4Q25 delivered 33 % revenue growth to $1.04 b and EPS of $1.03 versus $0.86 consensus, and the stock sits near record highs ahead of its 1Q26 print on June 3 despite last year’s outage scare. Investors value CRWD at ~14× forward sales versus SentinelOne’s ~8× following today’s miss, underscoring the premium the market assigns to scale, profitability and consistency in the crowded endpoint-security field.

Microsoft (MSFT) delivered a stellar Q4 performance, exceeding analyst expectations on both revenue and earnings. Cloud giant Azure continued its dominance, growing 46% year-over-year, yet the company's stock experienced a surprising dip following the report. So, what fueled the rally, and why did the party seem to end early?

• Revenue surged 18% to $62 billion, while EPS jumped 33% to $2.93. All segments saw healthy growth, particularly Azure, showcasing Microsoft's diversified strength.
• Azure reaffirmed its position as the second-largest cloud platform, solidifying investor confidence in Microsoft's long-term growth potential.

Despite the positive results, a few factors might have dampened investor enthusiasm:

• While optimistic, Microsoft's future outlook fell slightly short of some analyst expectations, hinting at potential headwinds in a slowing economy.
• With the stock already trading at a high valuation, some investors might believe future growth is already priced in, leaving little room for upside surprises.
• Global economic uncertainties and rising interest rates continue to cast a shadow, with investors questioning the sustainability of current growth rates.

Despite the post-report dip, Microsoft's Q4 performance was undeniably strong. However, the modest selling pressure highlights the cautious optimism surrounding the company's ability to maintain its momentum in a more challenging economic climate. Investors will be closely watching how Microsoft navigates these headwinds and executes its ambitious growth plans in the coming quarters.