Analysts Stay Cautious on on Alpha and Omega Semiconductor Limited (AOSL)

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) is among the 7 Small-Cap Semiconductor Stocks to Buy According to Analysts.

Analysts Stay Cautious on on Alpha and Omega Semiconductor Limited (AOSL)

As of March 6, Alpha and Omega Semiconductor Limited has a Neutral or equivalent rating from 67% of the analysts covering the stock, with the remaining 33% bullish on the stock. Among those holding a cautious view on the stock is Tore Svanberg from Stifel, who trimmed the price target on the company to $22 from $24 and maintained a Hold rating on February 6.

On the same day, Craig Ellis, an analyst at B. Riley, also reduced the price target on Alpha and Omega Semiconductor Limited from $24 to $19 and maintained a Neutral rating. While Q1 results showed upside in sales, both gross margin and EPS lagged.

In a research note, Ellis noted potential growth in PC and smartphone content this year, adding that EPS pressure in the short term could be due to a 25% YoY surge in R&D to accelerate advanced compute and AI socket projects. The returns are anticipated as revenue growth picks up in CY27, B. Riley concluded.

Alpha and Omega Semiconductor Limited, incorporated in 2000, is a California-based company specializing in power semiconductor products for applications in computing, consumer electronics, communications, and industrials.

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