Alpha and Omega (AOSL) AI Stock Analysis

• Market Cap: $785.52M
• Dividend Yield: N/A
• Average Volume (3M): 227.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 5.92%
• EPS Growth: -746.07%
• Country: US
• Employees: 2,332
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 0.02
• Shares Outstanding: 29,759,995
• 10 Day Avg. Volume: 256,371
• 30 Day Avg. Volume: 227,372
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 14.56
• 1Y Price Target: $30.67
• Price Target Upside: 14.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $27.00 ▲(1.05% Upside)

Alpha and Omega Semiconductor's overall stock score reflects mixed financial performance with strong revenue growth but profitability challenges. Technical indicators suggest a neutral trend, while valuation is impacted by negative earnings. The earnings call provided positive guidance in key segments, but highlighted ongoing challenges. The strategic sale of a stake in CQJV is a positive move, though its impact is already considered in the earnings analysis.

Positive Factors

Financial Performance

AOSL delivered solid upside performance to June quarter results and issued a better-than-expected outlook driven by tariff-related pull-ins and sequential growth in AI and graphics demand from the Computing segment.

Strategic Opportunities

The company is capitalizing on key opportunities and executing well in the areas within its control with many new opportunities to drive content and share gains across the AI ecosystem.

Negative Factors

Revenue Trajectory

The price target is being lowered to $32 from $42 to reflect a modestly more cautious revenue trajectory near-term.

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 Semiconductor generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and distributors across multiple industries. Key revenue streams include the sale of power MOSFETs, diodes, and power ICs, which are essential components in power management solutions. The company benefits from long-term partnerships with major technology firms, enhancing its market reach and enabling it to secure significant orders. Additionally, AOSL invests in research and development to innovate and expand its product lines, thereby driving sales growth and maintaining competitive advantage in the dynamic semiconductor market.

Alpha and Omega Financial Statement Overview

Summary

Alpha and Omega's financial performance is mixed. Despite strong revenue growth, the company faces profitability challenges with negative net income and EBIT margins. The balance sheet is stable with low leverage, but negative ROE is concerning. Cash flow generation is strong, but not consistently translating into profitability.

Income Statement

Alpha and Omega's income statement shows significant volatility. The company experienced a dramatic increase in revenue in the latest year, but this was accompanied by negative net income and EBIT margins, indicating profitability challenges. The gross profit margin has decreased over the years, reflecting potential cost management issues. Despite the revenue growth, the negative net profit margin and EBIT margin highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity has been negative recently, indicating poor profitability relative to shareholder equity. The equity ratio is stable, but the declining ROE and negative net income are concerning for long-term financial health.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio, indicating good cash generation relative to reported earnings. The free cash flow has improved significantly, but the free cash flow to net income ratio suggests that cash flow is not consistently translating into profitability. The company has shown substantial free cash flow growth, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	680.97M	696.16B	657.27M	691.32M	777.55M	656.90M
Gross Profit	161.15M	161.00B	171.92M	199.54M	268.56M	204.54M
EBITDA	45.70M	33.96M	50.00M	65.74M	144.89M	116.76M
Net Income	-22.65M	-96.98M	-11.08M	12.36M	453.16M	58.12M
Balance Sheet
Total Assets	1.12B	1.03B	1.15B	1.20B	1.30B	918.57M
Cash, Cash Equivalents and Short-Term Investments	169.36M	153.50M	175.13M	195.19M	314.35M	202.41M
Total Debt	54.78M	50.91M	67.21M	78.80M	98.77M	201.56M
Total Liabilities	230.08M	210.36M	253.41M	315.82M	444.54M	402.25M
Stockholders Equity	886.29M	822.33M	891.61M	883.92M	854.09M	373.20M
Cash Flow
Free Cash Flow	9.44M	29.67B	-11.38M	-89.95M	80.85M	56.04M
Operating Cash Flow	39.62M	29.67B	25.71M	20.47M	218.87M	128.74M
Investing Cash Flow	-29.32M	-36.44B	-35.74M	-109.63M	-130.82M	-72.54M
Financing Cash Flow	-15.25M	-15.50B	-9.90M	-29.61M	21.85M	-18.99M

Alpha and Omega Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 26.72 is above the 20-day moving average (MA) of 26.47, above the 50-day MA of 26.38, and below the 200-day MA of 29.56, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 is Neutral, 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
Sector *	68 Neutral	¥243.52B	15.34	6.64%	2.42%	9.16%	-0.15%
IMOS	58 Neutral	$548.63M	113.03	0.66%	5.42%	0.15%	-92.08%
AOSL	54 Neutral	$785.52M	―	-11.32%	―	5.92%	-746.07%
COHU	54 Neutral	$927.10M	―	-10.09%	―	-21.27%	-207.30%
CEVA	50 Neutral	$541.17M	―	-3.81%	―	7.71%	-44.25%
AAOI	48 Neutral	$1.42B	―	-50.93%	―	77.94%	-75.13%
ICHR	46 Neutral	$633.00M	―	-2.98%	―	15.45%	49.82%

Alpha and Omega Corporate Events

Alpha and Omega Sells Stake in CQJV for $150M

On July 14, 2025, Alpha and Omega Semiconductor Limited announced an agreement to sell approximately 20.3% of its equity interest in its joint venture CQJV, located in Chongqing, China, to a strategic investor for $150 million. This transaction, expected to close by the end of 2025, will provide AOS with capital to invest in technology and R&D, while maintaining its business relationship with CQJV. The sale aligns with AOS’s strategy to monetize its investments and reinvest in expanding its product portfolio, ensuring continued access to CQJV’s manufacturing capabilities.