Is AOSL's Q3 2025 EPS forecast a sign of growth?

**Alpha and Omega Semiconductor's (AOSL) Q3 2025 EPS forecast does not indicate growth**, and here are the reasons why: 1. **Q3 2025 EPS Projection**: The estimated EPS for AOSL in Q3 2025 is -$0.4, which indicates a loss rather than growth. 2. **Historical Performance Context**: Comparing the current Q3 2025 EPS projection with the previous quarter's EPS of $0.09, there is a significant decline, suggesting that the company is facing challenges in maintaining profitability. 3. **Revenue Outlook**: While the revenue for Q3 2025 is projected at approximately $158 million, with a potential for +/- $10 million variance, this figure is lower than the revenue achieved in the preceding quarter. Additionally, the non-GAAP gross margin is expected to be lower at 22.5%, which implies that the company may be facing margin pressure. 4. **Market and Sector Trends**: The company's strategic focus on AI and smartphone growth is positive, but the impact of this on Q3 2025 earnings is not sufficient to indicate growth based on the EPS projection. 5. **Financial Health Concerns**: The decrease in non-GAAP gross margin to 24.2%, down from 25.5% in the prior quarter, and the anticipated increase in manufacturing costs during the Lunar New Year period suggest that the company is facing cost challenges that could negatively affect profitability. In conclusion, the EPS forecast for Q3 2025 is not a sign of growth for Alpha and Omega Semiconductor, considering the projected loss, decline in EPS from the previous quarter, lower revenue projections, and anticipated margin pressure.