Supplychain
AOSL Q2: Potential B300 Supplier; Margins Disappoint
Alpha and Omega is openly being considered as a supplier for Nvidia’s B300 systems, expected to ship mid-year. Given its tiny revenue of $173.2 million, and our ability to combine technicals with fundamentals, we feel it’s a shot worth taking. Should AOSL be confirmed as the supplier over Monolithic Power Systems, then the company would theoretically surge. Should they not be confirmed, the stock would theoretically plummet. It’s not for the faint of heart, yet we continue to like the risk/reward the stock offers. With that introduction, the earnings report this quarter matters very little --- what matters is if AOSL becomes a confirmed supplier. That announcement, or any supply chain whispers, will likely happen outside of an earnings report as we approach CY Q1-Q2.
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