Alpha & Omega Semiconductor's stock experienced a significant intraday plummet of 27.77% on Thursday, extending losses from earlier trading sessions.
The sharp decline follows the company's release of its fiscal third-quarter 2026 financial results, which showed an adjusted loss per share of 28 cents. While revenue of $163.8 million slightly exceeded expectations, gross margins weakened and the company reported a widening net loss compared to the previous year.
Management cited ongoing weakness in consumer applications and seasonal softness in the PC market, which overshadowed strength in advanced computing segments including AI and servers. The company's guidance for the fourth quarter of $158–$178 million in revenue also contributed to investor concerns, particularly given uncertainty in memory pricing and supply for the second half of 2026.