Alpha And Omega Semiconductor (AOSL)
NASDAQ:AOSL
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Alpha and Omega
(NASDAQ:AOSL)
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Rating:59Neutral
Price Target:
$43.00
▲(26.92% Upside)
Action:Reiterated
Date:05/14/26
AOSL scores in the middle primarily due to weak current profitability and cash burn despite a strong, low-leverage balance sheet. Technicals are a clear positive with price above key moving averages and supportive momentum. The earnings call adds modest support via sequential growth and margin-expansion guidance, but uncertainty, widening losses, and negative operating cash flow keep the overall score constrained; valuation is also limited by negative earnings and no dividend yield provided.
Positive Factors
Strong balance sheet and cash
Low leverage and a large equity base, plus ~$190M cash, provide durable financial flexibility. This supports R&D, targeted capacity buildouts, and ongoing buybacks while insulating operations during cyclical semiconductor downturns and reducing immediate refinancing risk.
Negative Factors
Negative operating and free cash flow
Consistent cash burn reduces runway for investment and forces capital allocation tradeoffs despite a strong balance sheet. Negative operating and free cash flow constrain sustained R&D and capacity spending without drawing on cash reserves or external financing, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and cash
Low leverage and a large equity base, plus ~$190M cash, provide durable financial flexibility. This supports R&D, targeted capacity buildouts, and ongoing buybacks while insulating operations during cyclical semiconductor downturns and reducing immediate refinancing risk.
Read all positive factors
Alpha and Omega Key Performance Indicators (KPIs)
Alpha and Omega (AOSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)373.13K
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue Growth0.60%
EPS Growth-359.56%
CountryUS
Employees2,332
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-3.56
Shares Outstanding29,929,579
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 Cap0.87
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit7.09
Enterprise Value/Ebitda56.46
Forecast
1Y Price Target
$40.25Price Target Upside18.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.63
Revenue Forecast (FY)$675.97M
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 Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: clear strategic and product‑mix progress with meaningful traction in advanced computing and DMOS growth, plus encouraging communications performance and constructive June guidance. However, these positives are offset by worsening EPS losses, margin compression, negative operating cash flow, a steep decline in Power IC revenue, and macro/ component headwinds (memory pricing, China softness) that create uncertainty for H2 2026. Management’s investments and capacity expansion signal confidence in a stronger exit to 2026/2027, but near‑term financial metrics remain pressured.Positive Updates
Revenue Near Guidance Midpoint with Sequential Growth
Total March quarter revenue was $163.8M, down 0.5% year‑over‑year but up 0.9% sequentially, coming in slightly above the midpoint of guidance and management calling the December and March quarters a bottom for revenue and gross margin.
Negative Updates
Widening Non‑GAAP EPS Loss
Non‑GAAP EPS was a loss of $0.28 per share, worsening from a loss of $0.16 last quarter and a loss of $0.10 a year ago, reflecting margin pressure and higher operating expenses.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Near Guidance Midpoint with Sequential Growth
Total March quarter revenue was $163.8M, down 0.5% year‑over‑year but up 0.9% sequentially, coming in slightly above the midpoint of guidance and management calling the December and March quarters a bottom for revenue and gross margin.
Read all positive updates
Company Guidance
Management guided June-quarter revenue of approximately $168 million ± $10 million, GAAP gross margin of 22.3% ± 1% and non‑GAAP gross margin of 23% ± 1%, GAAP operating expenses of ~$52 million ± $1 million and non‑GAAP operating expenses of ~$45.5 million ± $1 million, with interest income expected to exceed interest expense by ~$1 million and income tax expense of $1.0–$1.2 million; they forecast CapEx of $15–$17 million for the June quarter. By segment they expect Computing to rise low– to mid‑single digits sequentially (driven by AI/server/advanced computing), Consumer to be roughly flat sequentially, Communications to decline slightly sequentially while sustaining strong year‑over‑year growth, and Power Supply & Industrial to increase mid‑single digits sequentially. Management expects a return to sequential growth and ~130 basis points of gross‑margin expansion versus March (about half from utilization improvement and half from mix); cash was $190.3 million at quarter end.Alpha and Omega Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 685.04M | 696.16M | 657.27M | 691.32M | 777.55M | 656.90M |
| Gross Profit | 153.49M | 161.00M | 171.92M | 199.54M | 268.56M | 204.54M |
| EBITDA | 19.26M | 37.24M | 55.10M | 67.78M | 144.89M | 119.22M |
| Net Income | -106.26M | -96.98M | -11.08M | 12.36M | 453.16M | 58.12M |
Balance Sheet | ||||||
| Total Assets | 976.41M | 1.03B | 1.15B | 1.20B | 1.30B | 918.57M |
| Cash, Cash Equivalents and Short-Term Investments | 190.25M | 153.08M | 175.13M | 195.19M | 314.35M | 202.41M |
| Total Debt | 29.14M | 50.91M | 67.21M | 78.80M | 97.51M | 201.56M |
| Total Liabilities | 176.23M | 211.97M | 253.41M | 315.82M | 444.54M | 402.25M |
| Stockholders Equity | 800.18M | 822.33M | 891.61M | 883.92M | 854.09M | 373.20M |
Cash Flow | ||||||
| Free Cash Flow | -60.64M | -7.51M | -11.38M | -89.95M | 80.85M | 56.04M |
| Operating Cash Flow | -9.10M | 29.67M | 25.71M | 20.47M | 218.87M | 128.74M |
| Investing Cash Flow | 73.60M | -36.44M | -35.74M | -109.63M | -130.82M | -72.54M |
| Financing Cash Flow | -43.67M | -15.50M | -9.90M | -29.61M | 21.85M | -18.99M |
Alpha and Omega Technical Analysis
Positive
33.88
Price Trends
32.49
Positive
27.08
Positive
26.23
Positive
Market Momentum
1.74
Positive
57.28
Neutral
63.68
Neutral
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 33.88 is below the 20-day moving average (MA) of 40.78, above the 50-day MA of 32.49, and above the 200-day MA of 26.23, indicating a bullish trend. The MACD of 1.74 indicates Positive momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.68 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.15B | ― | -6.91% | ― | 23.10% | 35.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.25B | -12.01 | -12.98% | ― | 0.60% | -359.56% | |
59 Neutral | $1.70B | 626.49 | 3.46% | 2.25% | 16.77% | -23.42% | |
56 Neutral | $2.87B | ― | -8.87% | ― | -26.39% | -147.85% | |
52 Neutral | $63.96M | -0.16 | -134.56% | ― | -34.03% | ― | |
52 Neutral | $948.46M | ― | -42.36% | ― | 0.17% | -1.78% |
* Technology Sector Average
AOSL
Alpha and Omega
41.72
20.99
101.25%
AEHR
Aehr Test Systems
95.02
86.17
973.67%
IMOS
ChipMOS Technologies
51.02
32.71
178.66%
COHU
Cohu
46.53
29.57
174.35%
SQNS
Sequans Communications S A
4.20
-14.10
-77.05%
INDI
indie Semiconductor
4.81
2.39
98.76%
Alpha and Omega Corporate Events
Business Operations and StrategyM&A Transactions
Alpha and Omega Finalizes Sale of Joint Venture Stake
Positive
May 12, 2026
On July 14, 2025, Alpha Omega Semiconductor Limited and its Shanghai subsidiary agreed to sell approximately 20.3% of the outstanding equity interest in their Chongqing-based joint venture for power semiconductor packaging, testing, and 12-inch w...
Executive/Board Changes
Alpha and Omega announces director retirement and board transition
Neutral
Apr 17, 2026
On April 13, 2026, Alpha Omega Semiconductor Limited announced that Dr. Lucas S. Chang had notified the company of his decision to retire from its Board of Directors. His retirement from the board was scheduled to take effect on April 17, 2026, m...
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.