5 Best Small Cap Data Center Stocks to Buy

2. Alpha & Omega Semiconductor Limited (NASDAQ:AOSL)

Market Capitalization: $1.16 billion

Number of Hedge Fund Holders: 19

Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is one of the best small cap data center stocks to buy. On May 12, the Alpha & Omega announced the completion of its equity transfer agreement for the sale of its interest in its Chongqing, China-based joint venture, the company announced in a filing to the Securities and Exchange Commission (SEC).

Under the transaction, Alpha & Omega Semiconductor Limited and its subsidiary, Alpha & Omega Semiconductor (Shanghai) Ltd., entered into an equity transfer agreement with SIMIC Holdings Co., Ltd. for the sale of the company’s approximately 20.3% of outstanding equity interest in its joint venture of power semiconductor packaging, testing, and 12-inch wafer fabrication facility located in Chongqing, China. Prior to the transaction, the company had a 39.2% of the joint venture.

Alpha & Omega Semiconductor said the sale had a purchase price of $150 million paid in four installments. It announced the completion of the transaction after receiving the final installment on May 11.

In July last year, Alpha & Omega said the transaction would provide it with additional and significant capital for the company to continue investment in technology and R&D projects. Additionally, it will also support efforts for the acquisition of assets complementary to our business operations, which will facilitate and accelerate its initiative in developing innovative and diverse power semiconductor products. It added:

“Importantly, the sale does not impact our ongoing business relationship with CQJV, and we will continue to enjoy access to CQJV’s wafer manufacturing and assembly and test capacity provided under existing agreements, as well as protection for our proprietary technology and intellectual property.”

Alpha & Omega Semiconductor Limited (NASDAQ:AOSL) is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules.