Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Down After Earnings Miss

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.08). Alpha and Omega Semiconductor had a negative return on equity of 3.75% and a negative net margin of 15.06%.The business had revenue of $162.26 million for the quarter, compared to analyst estimates of $160.67 million. During the same quarter in the previous year, the business posted $0.09 earnings per share. The business’s revenue was down 6.3% on a year-over-year basis.

Alpha and Omega Semiconductor News Summary

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

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Benchmark reduced their price objective on shares of Alpha and Omega Semiconductor from $32.00 to $25.00 and set a “buy” rating for the company in a research report on Thursday, November 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a research note on Wednesday, January 21st. Wall Street Zen raised shares of Alpha and Omega Semiconductor from a “sell” rating to a “hold” rating in a research note on Saturday, December 6th. B. Riley Financial reiterated a “neutral” rating and set a $24.00 price objective (down previously from $40.00) on shares of Alpha and Omega Semiconductor in a report on Thursday, November 6th. Finally, 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 note on Friday. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Alpha and Omega Semiconductor currently has an average rating of “Hold” and an average price target of $23.67.

Insider Activity at Alpha and Omega Semiconductor

In other news, EVP Bing Xue sold 1,845 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $20.56, for a total value of $37,933.20. Following the transaction, the executive vice president owned 127,863 shares in the company, valued at $2,628,863.28. This trade represents a 1.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 16.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

Large investors have recently bought and sold shares of the stock. Nisa Investment Advisors LLC grew its stake in shares of Alpha and Omega Semiconductor by 137.6% in the 2nd quarter. Nisa Investment Advisors LLC now owns 1,012 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 586 shares in the last quarter. Hantz Financial Services Inc. lifted its position in shares of Alpha and Omega Semiconductor by 634.8% during the third quarter. Hantz Financial Services Inc. now owns 1,036 shares of the semiconductor company’s stock valued at $29,000 after purchasing an additional 895 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in Alpha and Omega Semiconductor by 49.0% during the second quarter. PNC Financial Services Group Inc. now owns 1,533 shares of the semiconductor company’s stock worth $39,000 after purchasing an additional 504 shares during the last quarter. CWM LLC grew its position in Alpha and Omega Semiconductor by 403.4% in the 2nd quarter. CWM LLC now owns 1,928 shares of the semiconductor company’s stock worth $49,000 after purchasing an additional 1,545 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in Alpha and Omega Semiconductor in the 3rd quarter worth about $62,000. 78.97% of the stock is currently owned by institutional investors.

Alpha and Omega Semiconductor Stock Performance

The stock has a market cap of $642.08 million, a PE ratio of -6.16 and a beta of 2.01. The company’s 50 day simple moving average is $21.42 and its 200 day simple moving average is $24.77.

About Alpha and Omega Semiconductor

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.