Alpha and Omega (AOSL) AI Stock Analysis

• Market Cap: $611.45M
• Dividend Yield: N/A
• Average Volume (3M): 393.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 5.81%
• EPS Growth: -376.55%
• Country: US
• Employees: 2,332
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.13
• Shares Outstanding: 30,061,450
• 10 Day Avg. Volume: 299,879
• 30 Day Avg. Volume: 393,566
• PEG Ratio: -0.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -100.44
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.07
• Enterprise Value/Ebitda: 17.62
• 1Y Price Target: $24.33
• Price Target Upside: 19.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): $713.70M

• Rating: 48 Neutral
• Price Target: $19.50 ▼(-4.13% Downside)

Alpha and Omega Semiconductor faces significant challenges, primarily due to declining profitability and bearish technical indicators. While there are strategic investments and growth in certain segments, the overall financial and valuation metrics remain weak, impacting the stock's attractiveness.

Positive Factors

Power IC Revenue Growth

The significant growth in Power IC revenue highlights strong demand and positions AOSL as a key player in power management solutions, supporting long-term revenue expansion.

Strategic Investments

The capital from the joint venture sale enhances AOSL's ability to invest in strategic initiatives, potentially driving future growth and innovation in the semiconductor industry.

800-Volt AI Power Architecture

Supporting 800-volt architecture positions AOSL to capitalize on emerging opportunities in AI data centers, potentially expanding its market reach and technological leadership.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, with negative net income and EBIT margins, may hinder AOSL's ability to sustain long-term growth and financial stability.

Gross Margin Pressure

Decreasing gross margins indicate rising operational costs, which could impact AOSL's ability to maintain competitive pricing and profitability over time.

Consumer Segment Revenue Decline

A significant decline in consumer segment revenue suggests potential challenges in maintaining demand, which could affect AOSL's overall revenue stability.

Alpha and Omega Business Overview & Revenue Model

Company Description

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, Notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers aMOS5 MOSFET for quick charger, adapter, PC power, server, industrial power, telecom, and datacenter applications; and Transient Voltage Suppressors for laptops, televisions, and other electronic devices. Further, it provides EZBuck regulators; SOA MOSFET for hot swap applications; RigidCSP for battery management; and Type-C power delivery protection switches. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.

How the Company Makes Money

Alpha and Omega generates revenue through the sale of its semiconductor products, which include power MOSFETs, IGBTs, and diodes. The company primarily earns income by selling these components to original equipment manufacturers (OEMs) and distributors across multiple sectors. Key revenue streams include direct sales to large manufacturers in the computing and automotive fields, as well as partnerships with distributors that help expand its market reach. Additionally, AOSL benefits from long-term relationships with customers that require reliable and efficient power solutions, contributing to stable recurring revenue. The company's focus on innovation and product development also allows it to maintain a competitive edge and meet the evolving needs of its clients, further enhancing its earning potential.

Alpha and Omega Financial Statement Overview

Summary

Alpha and Omega's financial performance is challenged by declining profitability and inconsistent revenue growth. Despite a stable balance sheet, the company faces issues with negative net profit margins and free cash flow, indicating operational inefficiencies and liquidity concerns.

Income Statement

Alpha and Omega's income statement shows a declining trend in profitability. The company has experienced negative net profit margins and EBIT margins in recent periods, indicating operational challenges. The gross profit margin has decreased over time, and revenue growth has been inconsistent, with recent periods showing negative growth. These factors suggest a need for strategic improvements to enhance profitability.

Balance Sheet

The balance sheet of Alpha and Omega reflects a relatively stable financial position with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity has been negative recently, highlighting challenges in generating returns for shareholders. The equity ratio remains healthy, suggesting a solid capital structure, but the company needs to address profitability issues to improve overall financial health.

Cash Flow

Cash flow analysis reveals mixed results for Alpha and Omega. While operating cash flow has been positive, free cash flow has been negative in recent periods, indicating potential liquidity concerns. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The company needs to focus on improving cash flow generation to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	696.78M	696.16M	657.27M	691.32M	777.55M	656.90M
Gross Profit	159.32M	161.00M	171.92M	199.54M	268.56M	204.54M
EBITDA	36.82M	37.24M	55.10M	67.78M	144.89M	119.22M
Net Income	-96.60M	-96.98M	-11.08M	12.36M	453.16M	58.12M
Balance Sheet
Total Assets	1.04B	1.03B	1.15B	1.20B	1.30B	918.57M
Cash, Cash Equivalents and Short-Term Investments	223.51M	153.08M	175.13M	195.19M	314.35M	202.41M
Total Debt	32.77M	50.91M	67.21M	78.80M	97.51M	201.56M
Total Liabilities	203.44M	211.97M	253.41M	315.82M	444.54M	402.25M
Stockholders Equity	834.10M	822.33M	891.61M	883.92M	854.09M	373.20M
Cash Flow
Free Cash Flow	-11.57M	-7.51M	-11.38M	-89.95M	80.85M	56.04M
Operating Cash Flow	28.78M	29.67M	25.71M	20.47M	218.87M	128.74M
Investing Cash Flow	52.31M	-36.44M	-35.74M	-109.63M	-130.82M	-72.54M
Financing Cash Flow	-33.39M	-15.50M	-9.90M	-29.61M	21.85M	-18.99M

Alpha and Omega Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOSL, the sentiment is Negative. The current price of 20.34 is below the 20-day moving average (MA) of 20.65, below the 50-day MA of 23.53, and below the 200-day MA of 24.73, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AOSL.

Alpha and Omega Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMOS	64 Neutral	$986.86M	131.88	0.98%	2.29%	0.96%	-85.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COHU	59 Neutral	$1.10B	-15.01	-8.53%	―	-4.50%	-45.79%
AEHR	55 Neutral	$654.44M	―	-5.43%	―	-3.23%	-122.16%
INDI	49 Neutral	$832.41M	-5.07	-34.90%	―	-4.99%	-12.11%
AOSL	48 Neutral	$611.45M	―	-11.17%	―	5.81%	-376.55%
SQNS	43 Neutral	$77.96M	―	-18.19%	―	2.80%	―

Alpha and Omega Corporate Events

Alpha and Omega Holds Annual Shareholders Meeting

On November 11, 2025, Alpha and Omega Semiconductor Limited held its Annual General Meeting of Shareholders, where five proposals were voted on. The meeting resulted in the election of nine directors to the Board, approval of executive compensation, amendment of the 2018 Omnibus Incentive Plan, ratification of Deloitte & Touche LLP as the independent auditor, and the potential adjournment of the meeting for further proxy solicitation if needed. These decisions are expected to influence the company’s governance and operational strategies moving forward.