Allegro MicroSystems is a semiconductor company with 29% YoY revenue growth, steady small earnings beats and 36.1% analyst upside after a 58% drawdown, but 70.6% of revenue comes from automotive customers and momentum and options signals are negative.
Thesis pillars
- Strong Revenue Growth↑Improving
- Automotive Customer Concentration↓Deteriorating
- Steady Earnings Beats↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Nov 1, 2026, based on the 10-K filed May 21, 2026
Allegro MicroSystems, Inc. (ALGM) Stock Analysis
Technology · Semiconductors
Sell if holding. Momentum 3.4/10 is below the 5.0 floor at $31.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: automotive OEM supply chain customers (70.6%); Sector modifier (Technology): -0.8.
Allegro MicroSystems designs and markets sensor ICs and power ICs for automotive and industrial markets, shipping roughly 2.1 billion units annually to more than 15,000 customers. Automotive customers—primarily suppliers to OEMs—accounted for 70.6% of FY2026 net sales. The... Read more
Sell if holding. Momentum 3.4/10 is below the 5.0 floor at $31.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: automotive OEM supply chain customers (70.6%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.2/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 84d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.
About Allegro MicroSystems, Inc.
About Allegro MicroSystems, Inc.
Allegro MicroSystems designs magnetic sensor ICs and power ICs primarily for automotive and industrial end-markets, with customers supplying automotive OEMs accounting for 70.6% of fiscal year 2026 net sales — down from 73.8% in fiscal year 2025. The company ships roughly 2.1 billion units annually across a portfolio exceeding 1,500 products to more than 15,000 customers worldwide, operating a fabless manufacturing model that sources wafer fabrication from external foundries including TSMC, UMC, Tower Semiconductor, and Polar.
Allegro MicroSystems generates revenue from two product families: magnetic sensor ICs — including Hall-effect, GMR, and TMR current, position, angle, and speed sensors — and power ICs including motor drivers, voltage regulators, isolated gate drivers, and power management ICs. The automotive segment covers xEV powertrains and ADAS steering and braking systems, where the transition to electro-mechanical braking and steer-by-wire architectures is expected to increase semiconductor content per vehicle over time. Industrial revenue is growing in AI data center cooling and power supply applications, factory automation, and robotics. Products are sold through a direct salesforce, distributors, and independent sales representatives globally. Competitors include larger semiconductor companies with internal wafer fabrication capabilities and greater resources for AI-accelerated product development. ASPs face structural price erosion characteristic of the analog semiconductor market. Allegro plans to continue aligning R&D investment toward xEV, ADAS, data center, and robotics applications through disciplined return-on-investment evaluation.
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Allegro MicroSystems sources wafer fabrication primarily from four foundry partners — UMC, Polar, Tower Semiconductor, and TSMC — with two of these facilities in Taiwan, a region exposed to earthquake risk and China-Taiwan geopolitical tensions that could disrupt supply. Internal assembly and testing is concentrated at AMPI in the Philippines, where disruption could materially impair the company's ability to test and deliver products. Chinese export restrictions on rare-earth elements including samarium, used in magnetic sensing applications, may restrict sourcing of materials critical to certain product lines if alternative suppliers cannot be qualified.
See also: Technology · Semiconductors
From Allegro MicroSystems, Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated Nov 2, 2026Recent Developments — Allegro MicroSystems, Inc.
Latest news
- NEWS 5 Stock Picks Last Month From Wall Street's Most Accurate Analysts — benzinga Nov 2, 2026 neutral
- NEWS Allegro Microsystems Inc (ALGM) Stock Up 4.1% but GF Value Says Overvalued -- GF Score: 87/100 - GuruFocus — GuruFocus Oct 28, 2026 positive
- NEWS Allegro MicroSystems Gains as AI Data Center Push and Earnings Setup Lift Sentiment - Quiver Quantitative — Quiver Quantitative Oct 28, 2026 positive
- NEWS Earnings to watch: Allegro MicroSystems (ALGM) reports Q3 results tomorrow - Yahoo Finance — Yahoo Finance Oct 28, 2026 neutral
- NEWS Allegro MicroSystems, Inc. (NASDAQ:ALGM) Stock Has Average Price Target of $51.58 - MarketBeat — MarketBeat Oct 28, 2026 neutral
Latest item Nov 2, 2026 · Generated 2026-11-05T11:34:06Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerautomotive OEM supply chain customers71%10-K Item 1A: 'Our customers that supply various systems and components to automotive OEMs accounted for 70.6%...of our total net sales in fiscal years 2026, 2025, and 2024, respectively.'
- MEDIUMSupplierthird-party wafer fabrication facilities10-K Item 1A: 'We currently rely on a limited number of third-party wafer fabrication facilities for the fabrication of semiconductor wafers'
- MEDIUMSupplierAMPI assembly and test facility10-K Item 1A: 'We rely heavily on the manufacturing operations at AMPI, which operates as our primary internal assembly and testing facility.'
Material Events(8-K, last 90d)
- 2026-05-13Item 5.02LOWDirectors Susan D. Lynch and Richard R. Lury notified the Board on May 11 and 13, 2026, respectively, of decisions not to stand for reelection at the 2026 Annual Meeting on August 5, 2026. Robert J. Willett elected to the Board as Class III Director, appointed to Audit and Compensation Committees. No disagreement cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 3.4/10 is below the 5.0 floor at $31.25 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: automotive OEM supply chain customers (70.6%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $29.10. Score 6.2/10, moderate confidence.
Analyst target: $42.50 (+36.0% upside). Prior stop was $29.10. Stop-loss: $29.10.
Concentration risk — Customer: automotive OEM supply chain customers (70.6%); Sector modifier (Technology): -0.8; Negative momentum.
Allegro MicroSystems, Inc. trades at a P/E of 195.3 (forward 20.2). TrendMatrix value score: 5.9/10. Verdict: Sell.
19 analysts rate ALGM, with a consensus score of 4.2/5. 13 analysts publish price targets averaging $49.
What does Allegro MicroSystems, Inc. do?Allegro MicroSystems designs and markets sensor ICs and power ICs for automotive and industrial markets, shipping...
Allegro MicroSystems designs and markets sensor ICs and power ICs for automotive and industrial markets, shipping roughly 2.1 billion units annually to more than 15,000 customers. Automotive customers—primarily suppliers to OEMs—accounted for 70.6% of FY2026 net sales. The company operates under a fabless model, sourcing wafer fabrication from UMC, Polar, Tower, and TSMC.