Shares of Ambarella, which makes chips that process video for a number of companies including GoPro, fell after Citi analysts cut their shipment forecasts for GoPro's action camera following results from consumer surveys.
The firm now expects GoPro to ship 9.3 million cameras by 2018, down from its previous forecast of 10.6 million units.
Santa Clara, Calif.-based Ambarella is a developer of semiconductor processing solutions for video that enable high-definition, video capture, sharing, and display.
The company's system-on-a-chip designs HD video processing, image processing, audio processing, and system functions onto a single chip, delivering video and image.
Insight from TheStreet's Research Team:
High-definition video capture semiconductor company Ambarella (AMBA) has been on fire since early May. We profiled the stock on May 18, and we thought it was a good time to follow up on this monster name. A month ago, we saw the stock starting to break out past $90, and earnings hit. They were spectacular, and the company guided higher. As we see from the chart, that was the catalyst to higher prices, but there was more.