Navigating Contradictions: Analyzing Tariff Impacts and AI Growth in the Latest Earnings Call

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Revenue Growth and Segment Performance:
- Alpha and Omega Semiconductor reported $164.6 million in revenue for Q3, up 9.7% year-over-year but down 4.9% sequentially.
- Growth was driven by better-than-expected demand in the Computing segment, particularly in tablets and notebooks, despite seasonal declines in other segments.

Computing Segment Strength:
- The Computing segment revenue was $78.3 million, representing 47.9% of total revenue and up 14.8% year-over-year.
- Upside was driven by stronger-than-expected tablet demand and some notebook demand pull-ins due to tariff uncertainties, with graphics and AI accelerated card demand also robust.

Power Supply and Industrial Segment Results:
- The Power Supply and Industrial segment was up 32.4% year-over-year to $33.1 million but down 6.2% sequentially.
- Results were driven by a seasonal decline in quick chargers but offset by growth in e-mobility and AC-DC power supplies.

Tariff Impact and Market Dynamics:
- Alpha and Omega Semiconductor faces a dynamic macroeconomic, geopolitical, and trade-related landscape, with limited direct tariff exposure due to minimal U.S. shipments.
- The company is closely supporting customers navigating supply chain complexities to ensure compliance and minimize disruptions.