Contradictions Unveiled: AOS's Q4 2025 Earnings Call Highlights Tariffs, AI Growth, and Market Dynamics

Strong Revenue Growth and Power IC Performance:
- Alpha and Omega Semiconductor reported $176.5 million in total revenue for the June quarter, up 9.4% year-over-year and 7.2% sequentially.
- The revenue growth was driven by better-than-expected demand in computing, particularly in AI and graphics chips, as well as strong sequential growth in the Consumer segment.

Power IC Revenue Surge:
- Power IC revenue increased to $68.7 million, up 25.8% sequentially and 30.2% year-over-year, representing nearly 40% of total product revenue.
- This surge was attributed to a richer mix of power ICs in graphics, AI, gaming, and PC markets.

Computing Segment Success:
- The Computing segment revenue was $92.9 million, up 29.7% year-over-year and 17.9% sequentially, accounting for 52.6% of total revenue.
- The growth was fueled by tariff-related PC pull-ins and robust demand for AI and graphics applications.

Geopolitical and Macroeconomic Uncertainties:
- The company acknowledged ongoing uncertainties regarding macroeconomic conditions and geopolitics.
- Despite these uncertainties, Alpha and Omega Semiconductor is focused on executing its transformation from a component supplier to a total solutions provider.

JV Sale and Financial Impact:
- Alpha and Omega sold 20.3% of its joint venture in Chongqing, China, for an aggregate cash consideration of $150 million.
- This transaction resulted in a $76.8 million impairment charge on a U.S. GAAP basis, partially reversing a previous net gain.