Alpha And Omega Semiconductor (AOSL)
NASDAQ:AOSL
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Alpha and Omega
(NASDAQ:AOSL)
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Rating:48Neutral
Price Target:
$23.00
▼(-5.66% Downside)
Action:ReiteratedDate:03/10/26
The score is held down primarily by weakened financial performance (losses, compressed margins, and negative free cash flow) and bearish technicals (below key moving averages with negative momentum). Offsetting factors include a strong, low-debt balance sheet and a cautiously constructive earnings call that points to a near-term trough with strategic initiatives (R&D investment, JV monetization, buybacks, and higher-value design traction) aimed at restoring growth and margins.
Positive Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.04) and sizable equity provide durable financial flexibility, lowering refinancing risk and enabling the company to fund strategic initiatives (R&D, CapEx) or sustain operations through cycles without immediate external financing pressure.
Negative Factors
Margin compression and losses
Material margin deterioration and a shift to operating and net losses undermine return generation and shareholder capital efficiency. Sustained low gross margins and thin EBITDA reduce internal funding capacity and require meaningful product mix improvement to restore durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low debt-to-equity (~0.04) and sizable equity provide durable financial flexibility, lowering refinancing risk and enabling the company to fund strategic initiatives (R&D, CapEx) or sustain operations through cycles without immediate external financing pressure.
Read all positive factors
Alpha and Omega (AOSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$725.57M
Dividend YieldN/A
Average Volume (3M)373.13K
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth5.81%
EPS Growth-376.55%
CountryUS
Employees2,332
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.16
Shares Outstanding29,760,824
10 Day Avg. Volume276,837
30 Day Avg. Volume373,127
Financial Highlights & Ratios
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 Cap0.77
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda20.02
Forecast
1Y Price Target
$22.00Price Target Upside-9.76% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$659.97M
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 internation...
How the Company Makes Money
null...
Alpha and Omega Key Performance Indicators (KPIs)
Alpha and Omega Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Negative
The call presents meaningful strategic positives — targeted R&D acceleration, JV monetization providing cash, share repurchases, and early traction in higher-value AI, medium-voltage, and smartphone applications — but near-term financial metrics remain weak. Revenue fell 11.1% sequentially (6.3% YoY), gross margins and EPS deteriorated (non-GAAP EPS loss of $0.16), operating cash flow turned negative, and several end markets (consumer/gaming and quick chargers) showed sharp declines. Management expects March to be a near-term low and anticipates recovery beginning in June, with more substantial benefits in 2027. Given the notable near-term financial deterioration balanced against encouraging strategic execution, the overall tone is cautious with downside in the short term but constructive on the strategic long-term outlook.Positive Updates
Strategic Transformation and Targeted R&D
Company is executing a multi-year shift from component supplier to application-specific total solutions focused on higher-performance markets; management is increasing targeted R&D spend funded in part by JV monetization and expects ~25% higher R&D spend year-over-year in calendar 2026, with material benefits expected in 2027 and beyond.
Negative Updates
Revenue Decline — QoQ and YoY
Total December revenue was $162.3M, down 11.1% sequentially and down 6.3% year-over-year, with broad-based softness across multiple segments and seasonality impacts.
Read all updates
Q2-2026 Updates
Positive
Negative
Strategic Transformation and Targeted R&D
Company is executing a multi-year shift from component supplier to application-specific total solutions focused on higher-performance markets; management is increasing targeted R&D spend funded in part by JV monetization and expects ~25% higher R&D spend year-over-year in calendar 2026, with material benefits expected in 2027 and beyond.
Read all positive updates
Company Guidance
For March the company guided revenue of approximately $160.0M ± $10.0M, GAAP gross margin of 20.2% ± 1% (non‑GAAP gross margin 21% ± 1%), GAAP operating expenses of $52.0M ± $1.0M (non‑GAAP op ex $45.0M ± $1.0M), net interest income of about $1.0M, and income tax expense of $1.1M–$1.3M, with CapEx expected to be $15–$18M; by segment they expect computing to decline low single digits sequentially, consumer to grow mid single digits, communication to decline mid single digits, and power supply to rise mid single digits. Management said March should be a near‑term revenue and margin low point with a return to growth beginning in June into peak season, noted incremental R&D (about $20M of JV proceeds planned for 2026 and an ~25% year‑over‑year increase in R&D spend) is the primary driver of the higher operating expense guide.Alpha and Omega Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 685.88M | 696.16M | 657.27M | 691.32M | 777.55M | 656.90M |
| Gross Profit | 154.14M | 161.00M | 171.92M | 199.54M | 268.56M | 204.54M |
| EBITDA | 28.00M | 37.24M | 55.10M | 67.78M | 144.89M | 119.22M |
| Net Income | -103.28M | -96.98M | -11.08M | 12.36M | 453.16M | 58.12M |
Balance Sheet | ||||||
| Total Assets | 1.00B | 1.03B | 1.15B | 1.20B | 1.30B | 918.57M |
| Cash, Cash Equivalents and Short-Term Investments | 196.34M | 153.08M | 175.13M | 195.19M | 314.35M | 202.41M |
| Total Debt | 31.26M | 50.91M | 67.21M | 78.80M | 97.51M | 201.56M |
| Total Liabilities | 183.53M | 211.97M | 253.41M | 315.82M | 444.54M | 402.25M |
| Stockholders Equity | 818.77M | 822.33M | 891.61M | 883.92M | 854.09M | 373.20M |
Cash Flow | ||||||
| Free Cash Flow | -41.35M | -7.51M | -11.38M | -89.95M | 80.85M | 56.04M |
| Operating Cash Flow | 6.60M | 29.67M | 25.71M | 20.47M | 218.87M | 128.74M |
| Investing Cash Flow | 52.17M | -36.44M | -35.74M | -109.63M | -130.82M | -72.54M |
| Financing Cash Flow | -44.98M | -15.50M | -9.90M | -29.61M | 21.85M | -18.99M |
Alpha and Omega Technical Analysis
Positive
24.38
Price Trends
21.79
Positive
21.25
Positive
24.42
Negative
Market Momentum
0.52
Negative
63.97
Neutral
82.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOSL, the sentiment is Positive. The current price of 24.38 is above the 20-day moving average (MA) of 22.11, above the 50-day MA of 21.79, and below the 200-day MA of 24.42, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 82.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOSL.
Alpha and Omega Risk Analysis
Alpha and Omega disclosed 52 risk factors in its most recent earnings report. Alpha and Omega reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alpha and Omega Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.35B | 16.34 | 2.07% | 2.25% | 0.96% | -85.27% | |
55 Neutral | $1.61B | -14.78 | -9.07% | ― | -4.50% | -45.79% | |
54 Neutral | $1.93B | -89.67 | -8.87% | ― | -3.23% | -122.16% | |
48 Neutral | $725.57M | -11.11 | -12.29% | ― | 5.81% | -376.55% | |
47 Neutral | $628.49M | -4.89 | -37.84% | ― | -4.99% | -12.11% | |
44 Neutral | $39.83M | -0.61 | -99.13% | ― | 2.80% | ― |
* Technology Sector Average
AOSL
Alpha and Omega
24.38
1.54
6.74%
AEHR
Aehr Test Systems
63.16
54.40
621.00%
IMOS
ChipMOS Technologies
38.98
25.00
178.77%
COHU
Cohu
34.40
19.19
126.17%
SQNS
Sequans Communications S A
2.49
-17.01
-87.23%
INDI
indie Semiconductor
2.81
0.82
40.85%
Alpha and Omega Corporate Events
Business Operations and StrategyExecutive/Board Changes
Alpha and Omega Links Executive Bonuses to 2026 Performance
Positive
Mar 9, 2026
On March 5, 2026, Alpha and Omega Semiconductor’s Compensation Committee approved a 2026 incentive cash bonus plan that ties executive payouts to company performance. Under the plan, executive officers’ bonuses will depend on the compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.