Stifel cuts Alpha & Omega Semiconductor price target on PC weakness

Stifel has reduced its price target for Alpha & Omega Semiconductor stock (NASDAQ: AOSL) to $34 from $38 while keeping a Hold rating. The company is still focusing on growth areas like AI and server applications, with advanced computing subsegment revenue up more than 40% quarter-over-quarter and nearing 20% of total company revenue.

AI and server products are projected to become the majority of Advanced Computing revenue. Management expects these products to contribute more meaningfully during the second half of 2026 and into 2027. The gross profit margin stands at 22.3%. Overall Computing revenue is guided flat due to PC market softness. Alpha & Omega Semiconductor recently reported better-than-expected fiscal fourth-quarter results, with a non-GAAP loss of $0.13 per share and revenue of $170.4 million.

However, analysts at Stifel and Needham lowered their price targets due to PC market weakness and disruptions in China.