Is ALPHA & OMEGA SEMICONDUCTOR Ltd (AOSL) Halal?

NASDAQ Technology United States $656M
✓ HALAL
Confidence: 95/100
ALPHA & OMEGA SEMICONDUCTOR Ltd (AOSL) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 8.6% against the AAOIFI threshold of 30%, ALPHA & OMEGA SEMICONDUCTOR Ltd comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.6%
/ 30%
25.9%
/ 30%
6.3%
/ 30%
0.62%
/ 5%
✓ HALAL
DJIM 8.6%
/ 33%
25.9%
/ 33%
6.3%
/ 33%
0.62%
/ 5%
✓ HALAL
MSCI 4.9%
/ 33%
14.8%
/ 33%
3.6%
/ 33%
0.62%
/ 5%
✓ HALAL
S&P 8.6%
/ 33%
25.9%
/ 33%
6.3%
/ 33%
0.62%
/ 5%
✓ HALAL
FTSE 4.9%
/ 33%
14.8%
/ 33%
3.6%
/ 50%
0.62%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-3.51
P/B Ratio
0.8
EV/EBITDA
37.6
EV: $798M
Revenue
$696M
Growth: 44.9%
Beta
2.0
High volatility
Current Ratio
3.4

Profitability

Gross Margin 22.5%
Operating Margin 12.6%
Net Margin -15.1%
Return on Equity (ROE) -12.0%
Return on Assets (ROA) -2.4%

Cash Flow & Balance Sheet

Operating Cash Flow$30M
Free Cash Flow-$8M
Total Debt$51M
Debt-to-Equity39.0
Current Ratio3.4
Total Assets$1.0B

Price & Trading

Last Close$22.57
50-Day MA$21.74
200-Day MA$24.46
Avg Volume339K
Beta2.0
52-Week Range
$15.90
$33.01

About ALPHA & OMEGA SEMICONDUCTOR Ltd (AOSL)

CEO
Mr. Stephen Chunping Chang
Employees
2,428
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NASDAQ
Market Cap
$656M
Currency
USD

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. The company offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), Shielded-Gate low voltage and mid-voltage MOSFETs, SuperJunction high voltage MOSFETs, and trench-stop insulated gate bipolar transistors (IGBTs), as well as application specific MOSFETs for use in smartphone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. It also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. The company's power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, AI datacenters, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage protection products, analog switches, and electromagnetic interference filters for notebooks, desktop PCs, tablets, flat panel displays, TVs, smartphones, and portable electronic devices. Further, it provides silicon carbide, IPM, TVS, and HV gate drivers; and power modules, multiphase controllers, EZBuck regulators, and diode protection switches. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

Purification Calculator

As a halal stock with 0.62% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ALPHA & OMEGA SEMICONDUCTOR Ltd (AOSL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ALPHA & OMEGA SEMICONDUCTOR Ltd is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is ALPHA & OMEGA SEMICONDUCTOR Ltd's debt ratio?

ALPHA & OMEGA SEMICONDUCTOR Ltd's debt ratio is 8.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 4.9%.

Does ALPHA & OMEGA SEMICONDUCTOR Ltd require dividend purification?

Yes, ALPHA & OMEGA SEMICONDUCTOR Ltd has an impermissible income ratio of 0.62%, which means 0.62% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are ALPHA & OMEGA SEMICONDUCTOR Ltd's key financial metrics?

ALPHA & OMEGA SEMICONDUCTOR Ltd has a market capitalization of $656M, and revenue of $696M. The company maintains a gross margin of 22.5% and a net margin of -15.1%. Return on equity stands at -12.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.