Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alpha & Omega Semiconductor had a gross margin of 21.08% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alpha & Omega Semiconductor Gross Margin % Related Terms
Alpha & Omega Semiconductor Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:AOSLN vs CEVA, AIP, INDI: Gross Margin % Comparison
For the Semiconductors subindustry, Alpha & Omega Semiconductor's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alpha & Omega Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Alpha & Omega Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alpha & Omega Semiconductor's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alpha & Omega Semiconductor (MEX:AOSLN) has a Gross Margin % of 21.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alpha & Omega Semiconductor and its competitors. This is 19% below median its historical median of 25.88. Over the past decade, Alpha & Omega Semiconductor's Gross Margin % has ranged from 19.61 to 34.54. According to the industry distribution chart, Alpha & Omega Semiconductor ranks #649 out of 1011 companies in the Semiconductors industry, placing it in the top 64.2%.
Is Alpha & Omega Semiconductor's Gross Margin % too high?
Alpha & Omega Semiconductor's current Gross Margin % of 21.08% is 19% below median its 10-year median of 25.88. Over the past 10 years, this metric has ranged from a low of 19.61 to a high of 34.54. The Semiconductors industry median Gross Margin % is 29.61. Alpha & Omega Semiconductor's value of 21.08% is 28.8% below this industry median. Based on the distribution chart, Alpha & Omega Semiconductor ranks #649 out of 1011 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Alpha & Omega Semiconductor has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alpha & Omega Semiconductor's Gross Margin % compare to CEVA and AIP?
According to the Semiconductors industry distribution chart, Alpha & Omega Semiconductor ranks #649 out of 1011 companies for Gross Margin %. This places Alpha & Omega Semiconductor in the lower half of its industry. The industry median Gross Margin % is 29.61. Alpha & Omega Semiconductor's value of 21.08% is 28.8% below this benchmark. Historically, Alpha & Omega Semiconductor's own Gross Margin % has ranged from 19.61 to 34.54 over the past decade. While the company's 10-year median is 25.88 vs. the industry median of 29.61, Alpha & Omega Semiconductor has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alpha & Omega Semiconductor's current Gross Margin % of 21.08% is 28.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alpha & Omega Semiconductor and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alpha & Omega Semiconductor's current Gross Margin % is 21.08%, which is 19% below median its own 10-year median of 25.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alpha & Omega Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Alpha & Omega Semiconductor (MEX:AOSLN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN474.66, compared to a current price of MXN810.00 — trading 70.6% above its estimated fair value. The current Gross Margin % is 21.08%, which is 19% below median its 10-year median of 25.88 and 28.8% below the Semiconductors industry median of 29.61. Alpha & Omega Semiconductor's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alpha & Omega Semiconductor (MEX:AOSLN), the current Gross Margin % is 21.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alpha & Omega Semiconductor (MEX:AOSLN) Overvalued in 2026?
Based on GuruFocus' analysis, Alpha & Omega Semiconductor stock appears to be overvalued.
The current stock price of MXN810.00 is trading 70.6% above its estimated GF Value™ of MXN474.66.
GuruFocus considers Alpha & Omega Semiconductor to be Significantly Overvalued.
Key valuation signals for MEX:AOSLN:
Gross Margin %: 21.08% (19% below median its 10-year median of 25.88)
GF Value™: MXN474.66 vs. price of MXN810.00 (70.6% above fair value)
Industry Position: 28.8% below the Semiconductors median (#649 of 1011)
No single metric tells the full story. See the MEX:AOSLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alpha & Omega Semiconductor Ltd designs, develops and supplies a portfolio of power semiconductors targeting various applications, including personal computers, flat-panel TVs, LED lighting, smartphones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. It generates revenue mainly from the sale of power semiconductors, consisting of power discretes and power ICs with a presence in Hong Kong, China, South Korea, the United States and other countries. It operates in one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications.
62GF Score
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