The company witnessed two back-to-back quarters of decline in this market. Moreover, Ambarella projects the softness in the drone market to persist throughout fiscal 2018. Thirdly, the company is facing a new challenge in the form of Qualcomm Incorporated ( QCOM - Free Report ). It should be noted that Qualcomm is also looking to expand its product portfolio in order to cope with its declining share in the mobile chipset market. It is set to acquire NXP Semiconductors ( NXPI - Free Report ), which is the world's biggest automotive chipmaker.