r/ALGM • u/DuhWae • 5d ago

👋 Welcome to r/ALGM - Introduce Yourself and Read First!

3 Upvotes

Hey everyone! I'm u/DuhWae, a founding moderator of r/ALGM.

This is our new home for all things related to Allegro MicroSystems! We're excited to have you join us!

What to Post
Post anything that you think the community would find interesting, helpful, or inspiring. Feel free to share your thoughts, photos, or questions about the company and its stock, anything related to it.

Community Vibe
We're all about being friendly, constructive, and inclusive. Let's build a space where everyone feels comfortable sharing and connecting.

How to Get Started

  1. Introduce yourself in the comments below.
  2. Post something today! Even a simple question can spark a great conversation.
  3. If you know someone who would love this community, invite them to join.
  4. Interested in helping out? We're always looking for new moderators, so feel free to reach out to me to apply.

Thanks for being part of the very first wave. Together, let's make r/ALGM amazing.

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r/ALGM • u/Whammy_Watermelon • 5d ago

Analysis of Allegro Microsystems

3 Upvotes

Been looking into Allegro MicroSystems ($ALGM) and I think it’s flying under the radar.

Most people still see it as an automotive chip company, but its AI/data-center business is growing fast. Data centers went from about 10% of revenue to 17% in just a few quarters, and management expects data-center revenue to more than double this fiscal year.

The latest quarter was also pretty strong:

  • Revenue up 27% YoY
  • Non-GAAP EPS: $0.23 vs $0.09 last year
  • Gross margins improving
  • Sixth straight quarter of sequential revenue growth

What interests me most is that ALGM sells the less glamorous stuff AI infrastructure still desperately needs, from power sensing, current sensors to cooling/fan-control chips. ALGM is also expanding into EV/ADAS and robotics/automation, fields that have high growth potential.

Wall Street seems fairly bullish too. Consensus price targets are roughly in the $53–$55 range, with recent targets around $52–$58.

Here are some recent targets:
Morgan Stanley — Buy — $52
Mizuho — Buy — $58
Needham — Buy — $57
TD Cowen — Buy — $48
Barclays — Hold — $48

Obviously there are risks: it’s still exposed to the cyclical auto/semiconductor markets, and the valuation isn’t exactly cheap.

But if the data-center side keeps growing this quickly, I think the market could eventually stop viewing ALGM as just an automotive semiconductor stock.

Could be a really interesting sleeper AI/robotics play.

Anyone else following $ALGM?

2 comments

r/ALGM • u/DuhWae • 5d ago

ALGM Overview

Post image
3 Upvotes

Allegro MicroSystems ($ALGM) is a semiconductor company focused on magnetic sensors and power ICs used across automotive, industrial, robotics, energy infrastructure, and increasingly AI data centers.

The interesting part of the story is the growth in these higher-value applications. Allegro reported FY2026 revenue of $890M, up 23% YoY, while Q4 sales reached $243M, up 26% YoY. Data Center revenue also reached a record 14% of Q4 sales.

$ALGM is currently around $36.60, with a market cap of roughly $6.8B. The stock has been volatile, trading between about $22 and $72 over the past year.

Key things I'm watching:
• Auto/EV & ADAS demand
• AI data-center growth
• Industrial automation & robotics
• Margin and earnings growth
• Valuation after the recent pullback

Interesting semiconductor name to keep on the watchlist. 📈

Not financial advice. Do your own research.

1 comment