Ambarella Drops as Analysts See Risks From Chinese Tech Blacklist
Ambarella Drops as Analysts See Risks From Chinese Tech Blacklist
(Bloomberg) -- Ambarella Inc. fell as much as 14% on reports that a number of Chinese video surveillance companies are at risk of being placed on a U.S. blacklist.
Morgan Stanley analysts led by Joseph Moore wrote in a note that one of those surveillance companies, Hangzhou Hikvision Digital Technology Co., likely makes up a high-teens percentage of Ambarella’s total revenue. The analysts said that Ambarella likely has similar exposure to Zhejiang Dahua Technology Co., which is also a focus of U.S. lawmakers. Moore said that ON Semiconductor Corp. has low-single-digit revenue exposure to Hikvision as well.
Shares of Ambarella are up 15% year-to-date after today’s move, short interest is 9% of float according to data tracked by Markit.
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To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm
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