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AOSL's products in critically short supply

|Includes:Alpha and Omega Semiconductor Limited (AOSL), IRF, ON, VSH

According to iSuppli (via Barron's TechTrader blog), several key PC semiconductor products are in critically short supply, including the low voltage MOSFET's that are AOSL's specialty. Lead times are extremely long with suppliers gaining greater pricing power. While the market seems to be pricing in significant estimate cuts, the reality on the ground seems to be that they may even have room to come up.

It's a bit hard to square these kind of industry dynamics with AOSL's rock-bottom 3.5x EV/FY 2011E EBITDA valuation. Or the valuation of FCS, VSH and IRF for that matter.


Disclosure: Long AOSL

Stocks: AOSL, ON, VSH, IRF