Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Down on Disappointing Earnings

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $22.51, but opened at $18.01. Alpha and Omega Semiconductor shares last traded at $19.6230, with a volume of 158,343 shares changing hands.

The semiconductor company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.08). The company had revenue of $162.26 million for the quarter, compared to the consensus estimate of $160.67 million. Alpha and Omega Semiconductor had a negative return on equity of 3.75% and a negative net margin of 15.06%.The business’s revenue for the quarter was down 6.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.09 EPS.

More Alpha and Omega Semiconductor News

Here are the key news stories impacting Alpha and Omega Semiconductor this week:

• Positive Sentiment: Launched a 600V super-junction MOSFET platform—product expansion into higher-voltage power segments could support future sales growth in industrial and EV-related applications. Alpha and Omega Semiconductor launch 600V super junction MOSFET platform
• Neutral Sentiment: Company plans a ~25% increase in R&D for 2026 to push into AI and medium-voltage solutions—this signals long-term strategic investment but will raise near-term operating expenses. Alpha and Omega Semiconductor plans 25% R&D increase for 2026 amid push into AI and medium-voltage solutions
• Neutral Sentiment: Q2 revenue ($162.26M) modestly beat consensus estimates, showing resilience as top line was down only ~6% year-over-year; revenue beat partially offsets investor concern over profitability. Alpha and Omega Semiconductor (AOSL) Reports Q2 Loss, Beats Revenue Estimates
• Negative Sentiment: Q2 EPS missed expectations—reported a loss of $0.16 vs. the consensus loss of $0.08—highlighting near-term margin pressure and driving negative investor sentiment. Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026 Ended December 31, 2025
• Negative Sentiment: Q3 revenue guidance given as a wide $150M–$170M range (vs. consensus ~$153.4M), adding uncertainty on near-term growth visibility. View Press Release (Guidance)
• Negative Sentiment: Stifel lowered its price target from $24 to $22 and set a “hold” rating—analyst action reflects tempered near-term expectations and may weigh on sentiment. Benzinga

Wall Street Analyst Weigh In

Several research firms recently issued reports on AOSL. Stifel Nicolaus dropped their price target on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a “hold” rating on the stock in a research report on Friday. Wall Street Zen lowered shares of Alpha and Omega Semiconductor from a “hold” rating to a “strong sell” rating in a research note on Saturday. B. Riley Financial restated a “neutral” rating and issued a $24.00 price target (down from $40.00) on shares of Alpha and Omega Semiconductor in a research report on Thursday, November 6th. Benchmark decreased their price target on shares of Alpha and Omega Semiconductor from $32.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $23.67.

Insider Transactions at Alpha and Omega Semiconductor

In other Alpha and Omega Semiconductor news, EVP Bing Xue sold 1,845 shares of the company’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $20.56, for a total value of $37,933.20. Following the completion of the transaction, the executive vice president owned 127,863 shares in the company, valued at approximately $2,628,863.28. This represents a 1.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 16.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AOSL. Weber Capital Management LLC ADV bought a new stake in Alpha and Omega Semiconductor during the 4th quarter valued at $10,842,000. UBS Group AG raised its stake in shares of Alpha and Omega Semiconductor by 224.7% during the fourth quarter. UBS Group AG now owns 217,121 shares of the semiconductor company’s stock valued at $4,301,000 after purchasing an additional 150,254 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Alpha and Omega Semiconductor by 79.9% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,926 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 3,519 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in Alpha and Omega Semiconductor in the fourth quarter worth about $563,000. Finally, JPMorgan Chase & Co. grew its position in Alpha and Omega Semiconductor by 72.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 158,844 shares of the semiconductor company’s stock valued at $4,441,000 after buying an additional 66,723 shares in the last quarter. 78.97% of the stock is owned by institutional investors.

Alpha and Omega Semiconductor Stock Performance

The company’s 50 day simple moving average is $21.42 and its 200 day simple moving average is $24.74. The stock has a market cap of $642.08 million, a price-to-earnings ratio of -6.16 and a beta of 2.01.

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.