Start here if you're new
what it is
Alpha & Omega sells the power chips that help electronics manage electricity without frying themselves.
how it gets paid
Last year Alpha & Omega made $696M in revenue. Power MOSFETs was the main engine at $278.4M, or 40% of sales.
why it's growing
Revenue grew 5.9% last year. The quarter showed real demand improvement versus last year.
what just happened
Quarterly revenue hit $345M, up 112%, but AOSL still lost money and margins stayed thin.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
1.4% return on capital — nothing to write home about
-$3.30 fy2025 eps est
$2B fy2026 rev est
xvary composite: 39/100 — weak
What they do
Alpha & Omega sells the power chips that help electronics manage electricity without frying themselves.
This company wins by showing up in a lot of boring places. It has about 2,800 power semiconductor products across PCs, servers, phones, appliances, and industrial gear. That breadth matters when your customer wants one vendor across several designs, and AOS added more than 100 new products in fiscal 2025.
How they make money
$696M
annual revenue · their business grew +5.9% last year
Power MOSFETs
$278.4M
Power management ICs
$139.2M
Wide band gap SiC
$111.4M
Modules and IPM
$97.4M
IGBT, TVS, and gate drivers
$69.6M
The products that matter
power chips for computing devices
Computing & Consumer
~$348M in the latest disclosed split
this appears to be about half of the roughly $696M segment snapshot shown here, and it declined 4.9% from last year. that's still the core business, just not a thriving one.
about half the mix
power semiconductors for industrial uses
Industrial & Other
~$348M in the latest disclosed split
this bucket is also about half of the disclosed segment view and also fell 4.9% from last year. diversification helps only if at least one side is growing.
also declining
AI and industrial power demos
APEC 2026 showcase
new market pitch · no revenue disclosed
management is using APEC 2026 to show AI Core Power and industrial solutions. that's directionally interesting, but there is no disclosed revenue attached yet. right now it's a story, not proof.
watch for traction
Key numbers
$3.30
fy2025 eps
EPS → profit per share → so what: the business is still expected to lose $3.30 a share this year even after sales snapped back.
1.4%
return on capital
Return on capital → profit earned on money used in the business → so what: every $1 tied up in operations is producing just 1.4 cents of profit.
$21M
long-term debt
Long-term debt → money owed beyond a year → so what: debt is only 3% of capital, so the balance sheet is not the thing breaking this story.
22.5%
gross margin
Gross margin → money left after making the product → so what: more than three quarters of each sales dollar still disappears before operating costs.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $21M (3% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for AOSL right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarterly revenue hit $345M, up 112%, but AOSL still lost money and margins stayed thin.
The quarter showed real demand improvement versus last year. The problem is that EPS was still -$0.52 and gross margin was only 22.5%, so the rebound has not reached the bottom line.
$345M
revenue
$0.52
eps
22.5%
gross margin
the number that mattered
The 22.5% gross margin mattered most because doubling sales does not help much when too little of each dollar survives production.
source: company earnings report, 2026
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What could go wrong
the #1 risk is continued revenue shrinkage in core power semiconductors.
med
the core business keeps going backward
Latest revenue fell 4.9% from last year even as the industry backdrop looked far better. That is a company-specific problem until proven otherwise.
If the decline continues, the $2B revenue estimate starts looking aspirational instead of conservative.
med
margins leave very little room for errors
Gross margin is 22.5%. That means small pricing pressure, weak mix, or underutilization can hit earnings fast.
With analysts already expecting a -$3.30 loss for fy2025, there is not much cushion if execution slips again.
med
the new growth story stays a conference slide
APEC 2026 demos are interesting, but there is no disclosed revenue tied to them yet. Investors have heard many "next market" stories from chip companies before.
If AI and industrial power efforts do not turn into bookings, you are left owning the same low-return business with better marketing.
AOSL does not need a balance-sheet rescue. It needs the business to stop shrinking, lift margins above today's 22.5%, and prove the newer product push is real revenue.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth turning positive
After a 4.9% decline, the first job is simple: stop shrinking. One clean quarter of positive growth would matter more than a glossy presentation.
risk
gross margin above 22.5%
That is the current margin line. If it does not move up, earnings leverage stays weak and the turnaround case stays thin.
calendar
next earnings report
This is where management has to prove the miss was a stumble, not the normal state of the business. Watch revenue trend first, guidance second.
trend
APEC 2026 follow-through
The showcase matters only if it leads to customer traction. If mentions of AI Core Power stay stuck at the demo stage, the market will notice.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust the quarterly rhythm here.
balance sheet
B
Adequate finances. You are not paying for fortress quality, but debt is not the immediate problem either.
risk rank
4
Safer than only about 20% of stocks. The share price can move around a lot when confidence is already thin.
source: institutional data
Institutional activity
institutional ownership data for AOSL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$20
current price
n/a
target midpoint · n/a from current
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