Benchmark ups Alpha & Omega price target to $42, says ‘buying the dip’

Benchmark raised the firm’s price target on Alpha & Omega (AOSL) to $42 from $40 and keeps a Buy rating on the shares. Fiscal Q2 results were ahead of expectations, though the June quarter revenue outlook is about 2% below the consensus with gross margin pressure driving a sizeable miss on the bottom line, the analyst tells investors. Despite the negative share reaction following the print, the firm has increased confidence in the opportunity to participate across the full Nvidia (NVDA) Blackwell product family and recommends “buying the dip” in Alpha & Omega shares.