Ambarella (AMBA) tumbles on disappointing outlook. Its adjusted EPS came in at -$0.15 versus an estimated -$0.21 and revenue came in at $62.12M versus an estimated $62.41M. AMBA’s CEO noted that the “near-term environment is very challenging” and customers are aggressively reducing inventory. The CEO expects a return to growth the next fiscal year. Kevin Green discusses this as TD Cowen downgrades AMBA to market perform from outperform and cut its price target to $65 from $90. Kevin also looks at Texas Instruments (TXN) which was downgraded to underperform from market perform by Bernstein. The analyst notes that TXN’s gross margin expectations are “far too high.” Tune in to find out more about the stock market today.