Shares of Alpha & Omega Semiconductor (AOSL) plummeted 29.89% in early trading on Thursday, following the company's disappointing fiscal first-quarter 2026 results and weak forward guidance. The semiconductor manufacturer's stock faced significant pressure after management projected second-quarter revenue well below market expectations, prompting concerns about the company's growth trajectory.

Alpha & Omega reported Q1 adjusted earnings per share of $0.13, beating analyst estimates of $0.09. However, the company's revenue of $182.5 million slightly missed the projected $183.20 million. The primary catalyst for the stock's dramatic decline was the weak Q2 guidance, with projected revenue of approximately $160 million, significantly below market expectations and indicating a potential slowdown in key markets including computing, consumer electronics, and power supply segments.

Adding to the negative sentiment, several analysts downgraded their outlook on AOSL. Stifel cut its price target from $29 to $24, while Benchmark lowered its target from $32 to $25. These revisions reflect growing concerns about Alpha & Omega's near-term prospects and the broader challenges facing the semiconductor industry. As the sector often serves as a bellwether for technology trends, this outlook may raise questions about potential headwinds in the wider tech market.