Shares of Alpha & Omega Semiconductor (AOSL) surged 5.35% in pre-market trading on Friday, as investors responded positively to Benchmark's reaffirmed "Buy" rating on the stock. The semiconductor company's shares rallied despite Benchmark simultaneously lowering its price target from $42 to $32.

The maintained "Buy" rating appears to have overshadowed concerns about the reduced price target, suggesting that analysts at Benchmark remain confident in Alpha & Omega Semiconductor's long-term prospects. Investors often view analyst ratings as important indicators of a company's potential, and the reaffirmed positive stance seems to have sparked renewed interest in AOSL shares.

Alpha & Omega Semiconductor, known for its power semiconductor solutions, has been navigating a challenging market environment. While the lowered price target may reflect near-term headwinds in the semiconductor industry, the sustained "Buy" rating indicates that Benchmark analysts see value in the company's fundamentals and growth strategy. As the market digests this mixed signal from analysts, traders will be watching closely to see if AOSL can maintain its momentum throughout the trading session.