Alpha and Omega Semiconductor Limited (AOSL) reported QQ4 2024 revenue of $161.3 million, with non-GAAP gross margin of 26.4% and non-GAAP EPS of $0.09. The quarter marked a turning point after an industry-wide inventory correction, with management signaling the correction largely behind them and demand broadening across Computing, Consumer, Communications, and Power Supply & Industrial end markets. Management stressed an ongoing transition from a component supplier to a total solutions provider, leveraging core strengths in high-performance silicon, advanced packaging, and intelligent ICs to capture higher BOM content, particularly in AI/datacenter and smartphone applications. Near-term guidance points to continued sequential growth into Q1 FY25 (September quarter) with modest gross-margin stability as the company works to absorb inventory reductions and drive utilization.
The AI/datacenter narrative is central to AOSL’s medium-term upside. Management highlighted multi-application opportunities—from graphics cards to AI accelerators—where per-GPU power-stage content can be substantial (up to 50 DMOS power stages per AI card versus 9-16 on traditional GPUs), suggesting sizable incremental TAM if design wins convert to material revenue. While the company remains exposed to cyclical end markets (PCs, tablets, wearables), the operating plan emphasizes a broader product portfolio, stronger customer relationships, and a move toward higher BOM content that could support gross-margin accretion as utilization improves.