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# Alpha And Omega Says AI Is About 20% Of Revenue Versus 5.5% A Year Ago, And Weighs Reporting It Separately
- URL: https://www.bullished.co/alpha-and-omega-says-ai-is-about-20-of-revenue-versus-5-5-a-year-ago-and-weighs-reporting-1f1f6305/
- Published: 2026-11-06T08:11:36.000Z
- Updated: 2026-11-06T08:11:36.000Z
- Description: CEO Stephen Chang said the AI mix is a key reason margins are improving, even as traditional PC revenue fell about 30% from the prior quarter.
- Author: Matteo Parrino
- Tags: Earnings, AOSL, Industry: Technology

Alpha and Omega Semiconductor, which designs power chips used in PCs, servers, smartphones and appliances, said AI and server products now make up [approximately 20% of revenue](https://finance.yahoo.com/markets/stocks/articles/alpha-omega-semiconductor-aosl-said-001432177.html?ref=bullished.co), up from 5.5% a year ago. CEO Stephen Chang told analysts on the company's earnings call Thursday that management is discussing when to report that business separately.

## A fast-growing slice of the business

Chang said AI and server applications accounted for nearly 90% of advanced computing revenue, which itself reached nearly 23% of the total, ahead of the company's expectations. Within advanced computing, AI and server revenue grew more than 65% from the prior quarter and [more than 250%](https://www.benzinga.com/news/26/11/62959033/alpha-omega-q1-2027-earnings-call-transcript?ref=bullished.co) from a year earlier.

Asked by a Lake Street analyst whether investors could get a clearer view of AI, Chang said the company is discussing "what the [timing or what](https://www.benzinga.com/news/26/11/62959033/alpha-omega-q1-2027-earnings-call-transcript?ref=bullished.co) is appropriate" for that, and "will try to be more explicit in describing our business." He called AI "a very important part."

A Needham analyst asked how much of the growth came from new designs. Chang said "Most of these [sockets actually didn't](https://www.benzinga.com/news/26/11/62959033/alpha-omega-q1-2027-earnings-call-transcript?ref=bullished.co) exist in terms of revenue this time last year." He added that the company is getting longer-term commitments or forecasts in some areas, while others are still new.

## Margins rise while PCs slump

September-quarter revenue was $177.8 million, up 4.3% from the June quarter and down 2.6% from a year earlier, slightly above the midpoint of guidance. CFO Yifan Liang said adjusted gross margin rose to 25.2% from 23.7% in the June quarter, mainly on better product mix, with pricing playing a smaller role. The adjusted loss narrowed to 7 cents a share from 13 cents.

Chang said the AI mix is "a key reason why the margin is improving."

Traditional PC revenue fell about 30% from the prior quarter. Chang blamed elevated memory costs and component shortages, said the bulk of the drop came in the September quarter, and said he does not expect a near-term recovery. Computing revenue was $83.2 million, down 2% from the prior quarter.

## December guidance and the next stage

The company guided December revenue to about $180 million, plus or minus $10 million, with computing down mid to high single digits from the prior quarter. Management expects communications to grow in the mid-teens and power supply and industrial revenue to rise high single digits.

Liang said about $10 million to $12 million remains under the company's existing buyback program, adding that the board reviews capital allocation from time to time. Cash ended the quarter at $175.2 million.

Management is scheduled to appear at the UBS Global Technology and AI Conference in Scottsdale, Arizona, on December 2.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [What Alpha and Omega Semiconductor (AOSL) Said on Its Q1 Earnings Call](https://finance.yahoo.com/markets/stocks/articles/alpha-omega-semiconductor-aosl-said-001432177.html?ref=bullished.co) — Yahoo Finance
- [Alpha & Omega Q1 2027 Earnings Call Transcript](https://www.benzinga.com/news/26/11/62959033/alpha-omega-q1-2027-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Alpha and Omega Semiconductor Non-GAAP EPS of -$0.07 beats by $0.07, revenue of $177.8M beats by $1.6M (NASDAQ:AOSL) | Seeking Alpha](https://seekingalpha.com/news/4667451-alpha-and-omega-semiconductor-non-gaap-eps-of-0%5F07-beats-by-0%5F07-revenue-of-177%5F8m-beats-by?ref=bullished.co) — seekingalpha.com
- [Alpha and Omega: Fiscal Q1 Earnings Snapshot | king5.com](https://www.king5.com/article/syndication/associatedpress/alpha-and-omega-fiscal-q1-earnings-snapshot/616-6b7dc4dc-16bf-44ed-bf9c-b158a2a9256b?ref=bullished.co) — Associated Press
- [Alpha and Omega Semiconductor (AOSL) Reports Q1 Loss, Beats Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/alpha-omega-semiconductor-aosl-reports-212002987.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance