olivLaw · US equity research
Allegro MicroSystems, Inc. ALGM
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Allegro MicroSystems designs sensor and power integrated circuits used in automotive, AI data center, robotics and energy infrastructure applications. The company reported net sales of $890.1 million in fiscal 2026, and sales rose to $259.2 million in the first quarter of fiscal 2027. Growing demand from electrification and automation puts the company in focus for investors and observers.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Allegro MicroSystems, Inc. (ALGM) stock was 31.25 USD (−7.16% on the day), with market capitalisation 5.8 bn USD, P/E 209.1 on diluted EPS of 0.15 USD over the last 12 months, beta 2.29, 52-week range 22.80–69.62 USD. Latest reported quarter (Q2 2027): revenue of 276.9 m USD (+29.2% YoY), net income of 23.3 m USD (+256.8% YoY), diluted EPS 0.12 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 42.6
- weak (30–45)
- Bollinger (20, 2)
- 30.11 – 36.14
- in the lower half of the band · %B 0.19 · band width 18.2%
- SMA 50 / 200
- 34.83 / 40.83
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.96 / -0.96
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −18.7% | −1.1% | −17.6 pp | — |
| 3 months | −25.2% | −0.5% | −24.8 pp | — |
| 6 months | −39.2% | +4.4% | −43.6 pp | — |
| Year to date | +18.5% | +12.3% | +6.1 pp | — |
| 1 year | +13.9% | +13.5% | +0.3 pp | +40.6% |
| 3 years | +19.8% | +76.4% | −56.6 pp | +30.5% |
| 5 years | −3.0% | +63.7% | −66.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 25 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 177.9 m | 192.8 m | 203.4 m | 214.3 m | 229.2 m | 243.2 m | 259.2 m | 276.9 m |
| Cost of revenue | 96.7 m | 112.9 m | 112.1 m | 115.0 m | 122.1 m | 128.9 m | 133.6 m | 140.7 m |
| Gross profit | 81.2 m | 79.9 m | 91.3 m | 99.3 m | 107.1 m | 114.3 m | 125.6 m | 136.2 m |
| Research & development | 43.3 m | 47.6 m | 46.5 m | 50.9 m | 52.9 m | 55.5 m | 55.2 m | 55.8 m |
| SG&A | 37.9 m | 45.5 m | 47.5 m | 42.2 m | 44.6 m | 46.7 m | 45.0 m | 45.0 m |
| Operating income | -41.0 k | -13.2 m | -2.7 m | 6.2 m | 9.6 m | 5.4 m | 25.5 m | 35.4 m |
| Depreciation & amortisation | 16.1 m ≈ | 15.9 m | 16.2 m | 16.6 m ≈ | 17.0 m ≈ | 17.8 m | 16.9 m | 17.2 m ≈ |
| Interest expense | 7.8 m | 6.9 m | 6.4 m | 5.7 m | 4.9 m | 5.1 m | 4.4 m | 4.5 m |
| Pre-tax income | -7.6 m | -18.4 m | -10.0 m | -2.7 m | 494.0 k | -2.7 m | 17.4 m | 27.8 m |
| Income tax | -803.0 k | -3.7 m | 3.2 m | -9.3 m | -7.9 m | 13.7 m | 1.5 m | 4.5 m |
| Net income | -6.9 m | -14.8 m | -13.2 m | 6.5 m | 8.3 m | -16.5 m | 15.9 m | 23.3 m |
| Diluted EPS | -0.04 | -0.08 ≈ | -0.07 | 0.03 | 0.04 | -0.09 ≈ | 0.08 | 0.12 |
| Operating cash flow | -8.2 m ≈ | 20.4 m | 61.6 m | 20.4 m ≈ | 45.4 m ≈ | 35.7 m | 22.0 m | 36.8 m ≈ |
| Capex | 13.6 m ≈ | 5.4 m | 10.6 m | 6.4 m ≈ | 4.1 m ≈ | 17.0 m | 8.0 m | 6.3 m ≈ |
| Share repurchases | 116.0 k ≈ | 0 | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 88 percentile of its own 17-quarter history (min 9.1, median 39.1, max 973.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | unavailable | 650.1 m | 591.2 m | 768.7 m | 973.7 m | 1.0 bn | 725.0 m | 890.1 m |
| Revenue YoY | unavailable | unavailable | −9.1% | +30.0% | +26.7% | +7.8% | −30.9% | +22.8% |
| Net income | unavailable | 37.0 m | 18.0 m | 119.4 m | 187.4 m | 152.7 m | -73.0 m | -14.9 m |
| Net income YoY | unavailable | unavailable | −51.4% | +565.1% | +56.9% | −18.5% | −147.8% | unavailable |
| Diluted EPS | unavailable | 3.70 | 0.10 | 0.62 | 0.97 | 0.78 | -0.39 | -0.08 |
| Diluted EPS YoY | unavailable | unavailable | −97.3% | +520.0% | +56.5% | −19.6% | −150.0% | unavailable |
| net % | unavailable | 5.7% | 3.0% | 15.5% | 19.2% | 14.6% | -10.1% | -1.7% |
| Free cash flow | unavailable | 35.8 m | 79.9 m | 86.2 m | 113.4 m | 56.9 m | 22.0 m | 124.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 27 Mar 2026
- Cash
- 168.8 m USD
- Financial debt
- 287.3 m USD
- Net debt
- 118.5 m USD
- Equity
- 956.4 m USD
- Total assets
- 1.4 bn USD
- Debt / equity
- 0.30x
- Current ratio
- 3.45x
- ROE
- -1.6%
- ROA
- -1.1%
- FCF margin
- 14.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 591.2 m | 768.7 m | 973.7 m | 1.0 bn | 725.0 m | 890.1 m | SEC (XBRL)· 21 May 2026verified |
| Cost of revenue | 254.3 m | 286.9 m | 348.4 m | 471.9 m | 403.5 m | 478.1 m | SEC (XBRL)· 21 May 2026verified |
| Gross profit | 278.9 m | 407.5 m | 546.1 m | 574.5 m | 321.5 m | 412.0 m | SEC (XBRL)· 21 May 2026verified |
| Research & development | 108.6 m | 121.9 m | 150.9 m | 176.6 m | 179.6 m | 205.8 m | SEC (XBRL)· 21 May 2026verified |
| SG&A | 153.5 m | 148.9 m | 191.9 m | 188.4 m | 161.7 m | 181.1 m | SEC (XBRL)· 21 May 2026verified |
| Operating income | 12.2 m | 136.7 m | 203.3 m | 196.2 m | -19.8 m | 18.5 m | SEC (XBRL)· 21 May 2026verified |
| Depreciation & amortisation | 48.3 m | 48.5 m | 50.8 m | 71.4 m | 64.5 m | 67.6 m | SEC (XBRL)· 21 May 2026verified |
| EBITDA | 60.5 m ≈ | 185.2 m ≈ | 254.1 m ≈ | 267.6 m ≈ | 44.7 m ≈ | 86.1 m ≈ | SEC (XBRL)· 21 May 2026derived |
| Interest expense | 3.8 m | 2.5 m | 2.3 m | 10.8 m | 30.4 m | 22.1 m | SEC (XBRL)· 21 May 2026verified |
| Pre-tax income | -1.5 m | 140.7 m | 211.3 m | 194.8 m | -85.7 m | -14.9 m | SEC (XBRL)· 21 May 2026verified |
| Income tax | -19.6 m | 21.2 m | 23.9 m | 41.9 m | -12.9 m | -248.0 k | SEC (XBRL)· 21 May 2026verified |
| Net income | 18.0 m | 119.4 m | 187.4 m | 152.7 m | -73.0 m | -14.9 m | SEC (XBRL)· 21 May 2026verified |
| Diluted EPS | 0.10 | 0.62 | 0.97 | 0.78 | -0.39 | -0.08 | SEC (XBRL)· 21 May 2026verified |
| Weighted average diluted shares | 176.4 m | 191.8 m | 193.7 m | 194.7 m | 187.7 m | 185.0 m | SEC (XBRL)· 21 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 197.2 m | 282.4 m | 351.6 m | 212.1 m | 121.3 m | 168.8 m | SEC (XBRL)· 21 May 2026verified |
| Receivables | 69.5 m | 87.4 m | 111.3 m | 118.5 m | 84.6 m | 93.2 m | SEC (XBRL)· 21 May 2026verified |
| Inventories | 87.5 m | 86.2 m | 151.3 m | 162.3 m | 183.9 m | 181.8 m | SEC (XBRL)· 21 May 2026verified |
| Current assets | 430.6 m | 511.7 m | 665.8 m | 572.2 m | 483.0 m | 503.6 m | SEC (XBRL)· 21 May 2026verified |
| Property, plant & equipment, net | 192.4 m | 210.0 m | 263.1 m | 321.2 m | 302.9 m | 308.3 m | SEC (XBRL)· 21 May 2026verified |
| Goodwill | 20.1 m | 20.0 m | 27.7 m | 202.4 m | 202.5 m | 203.3 m | SEC (XBRL)· 31 Jul 2026verified |
| Intangibles (excl. goodwill) | 36.4 m | 36.0 m | 52.4 m | 276.9 m | 262.1 m | 238.7 m | SEC (XBRL)· 21 May 2026verified |
| Total assets | 747.7 m | 892.6 m | 1.2 bn | 1.5 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 21 May 2026verified |
| Short-term debt | 0 | 0 | — | 3.9 m | 1.4 m | 1.5 m | SEC (XBRL)· 21 May 2026verified |
| Long-term debt | 25.0 m | 25.0 m | 25.0 m | 249.6 m | 344.7 m | 285.7 m | SEC (XBRL)· 21 May 2026verified |
| Current liabilities | 116.7 m | 104.2 m | 165.3 m | 117.9 m | 112.3 m | 145.9 m | SEC (XBRL)· 21 May 2026verified |
| Total liabilities | 160.8 m | 157.3 m | 214.3 m | 398.9 m | 489.9 m | 459.7 m | SEC (XBRL)· 21 May 2026verified |
| Equity | 586.9 m | 735.4 m | 966.8 m | 1.1 bn | 931.1 m | 956.4 m | SEC (XBRL)· 21 May 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 120.6 m | 156.1 m | 193.2 m | 181.7 m | 61.9 m | 163.1 m | SEC (XBRL)· 21 May 2026verified |
| Capex | 40.7 m | 69.9 m | 79.8 m | 124.8 m | 40.0 m | 38.2 m | SEC (XBRL)· 21 May 2026verified |
| Free cash flow | 79.9 m ≈ | 86.2 m ≈ | 113.4 m ≈ | 56.9 m ≈ | 22.0 m ≈ | 124.9 m ≈ | SEC (XBRL)· 21 May 2026derived |
| Investing cash flow | -68.2 m | -66.3 m | -99.7 m | -516.7 m | -40.8 m | -41.7 m | SEC (XBRL)· 21 May 2026verified |
| Financing cash flow | -72.2 m | -5.3 m | -20.0 m | 198.9 m | -112.1 m | -77.4 m | SEC (XBRL)· 21 May 2026verified |
| Dividends paid | 400.0 m | 0 | 0 | — | — | — | SEC (XBRL)· 25 May 2023verified |
| Share repurchases | — | — | 0 | 0 | 853.9 m | 0 | SEC (XBRL)· 21 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 37 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet64
- Growth21
- Quality34
- Returns33
- Valuation42
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.64 – 57.13 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)6.71 – 10.56 (Mid 8.20)WACC 9.1% · starting FCFF 118.1 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales17.58 – 57.13 (Mid 27.27)28 companies used · median multiple 5.1x · quartiles 3.3x – 10.7xAAOI, ADI, AMAT, AMD, AMKR, AVGO, DIOD, FSLR, FTCI, ICHR, INTC, MCHP, MRAM, MRVL, MTSI, MU, MXL, NVDA, NXPI, ON, PLAB, Q, QUIK, SPCB, STM, SYNA, TXN, WOLF
- Peers: EV/EBITDA5.64 – 17.63 (Mid 12.93)12 companies used · median multiple 17.3x · quartiles 7.9x – 23.4xAMAT, AMKR, FSLR, ICHR, MCHP, MU, NVDA, NXPI, ON, PLAB, SPCB, STM
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 37/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 47.9% | 20 (on a fixed band) | 11% |
| EBIT margin · Quality | 7.5% | 43 (vs peers) | 9% |
| FCF margin · Quality | 10.4% | 41 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -2.9% | 0 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 22.8% | 62 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.7x | 29 (vs peers) | 6% |
| Current ratio · Balance sheet | 4.1x | 100 (on a fixed band) | 6% |
| EV/Sales · Valuation | 5.9x | 46 (vs peers) | 17% |
| FCF yield · Valuation | 1.8% | 36 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 4% |
Score groups
- Balance sheet64/100 · 2/2 factors with a value
- Growth21/100 · 2/2 factors with a value
- Quality34/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation42/100 · 2/2 factors with a value
Memo
ALLEGRO MICROSYSTEMS, INC. (ALGM). Latest full fiscal year: 2026; data up to 2026-09-25.
Figures computed from the financial statements: revenue 890.1 m USD in 2026; YoY growth 22.8%; net margin 3.1%; ROE 3.2%; net debt/EBITDA 0.7x.
The estimated value range is 6.71–17.63 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 12.93 USD, the price of 31.25 USD leaves a potential of -58.6% (value / price − 1) and a margin of safety of -141.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 37/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 4.1x
What contradicts it
- Gross margin: 47.9%
- Revenue CAGR 3Y: -2.9%
- Net debt / EBITDA: 0.7x
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ARMArm Holdings PLC | 204.1 bn | 225.6 | 12.0% | 18.4% | +22.8% | +41% / +212% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| STMSTMicroelectronics N.V. | 40.5 bn | 253.3 | 0.9% | 1.4% | −11.1% | +98% / −4% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| AMKRAmkor Technology, Inc. | 8.8 bn | 14.4 | 13.6% | 8.3% | +6.2% | −2% / +27% |
| ALGMAllegro Microsystems, Inc. | 5.8 bn | 209.1 | 3.2% | 3.1% | +22.8% | +14% / +20% |
| CRUSCirrus Logic, Inc. | 5.8 bn | 14.6 | 19.5% | 20.2% | +5.3% | −4% / +53% |
| MXLMaxLinear, Inc. | 5.2 bn | — | -5.9% | -4.4% | +29.7% | +265% / +204% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
1- and 3-year price returns: for ALGM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 18.97 Total return -39% · Per year -39% | 33.66 Total return 8% · Per year 8% | 50.88 Total return 63% · Per year 63% |
| 3 years | 15.76 Total return -50% · Per year -20% | 31.71 Total return 1% · Per year 0% | 52.99 Total return 70% · Per year 19% |
| 5 years | 13.09 Total return -58% · Per year -16% | 29.87 Total return -4% · Per year -1% | 55.19 Total return 77% · Per year 12% |
- Exit P/E± 7.93
- Net margin± 5.55
- Annual revenue growth± 4.90
- Annual dilution± 0.47
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).
In brief
Allegro MicroSystems designs sensor and power integrated circuits used in automotive, AI data center, robotics and energy infrastructure applications. The company reported net sales of $890.1 million in fiscal 2026, and sales rose to $259.2 million in the first quarter of fiscal 2027. Growing demand from electrification and automation puts the company in focus for investors and observers.
SWOT
Strengths
- The company presents itself as a global leader in magnetic sensors, with a broad portfolio and long-standing relationships with automakers 1.
- Its proprietary 120V BCD technology and TMR range give it a technical edge in applications with high safety and reliability requirements 1.
- Recent margin and sales improvement suggests better operating efficiency 3.
Weaknesses
- The fabless model depends on a limited number of external wafer fabs and single sources for certain materials 1.
- The company reported net losses in the past, and fixed purchase commitments and debt may limit financial flexibility 12.
- Average selling prices tend to decline over time, and the company depends on new design wins to offset these declines 2.
Opportunities
- Expansion into AI data centers, robotics and energy infrastructure could increase content per system 1.
- Development of isolated gate drivers for silicon carbide and gallium nitride could open new electrification design wins 1.
- Guidance for the second quarter of fiscal 2027 implies strong year-over-year growth, and rising bookings could support expansion 3.
Threats
- Semiconductor cyclicality and possible demand declines could reduce sales and lead to inventory write-downs 12.
- Trade restrictions, tariffs and export controls could affect access to materials and markets 1.
- Larger competitors and policies supporting local producers could increase price and market share pressure 1.
Risks
- Reliance on external wafer fabshigh
The company depends on a few external wafer fabs, and disruptions there could affect deliveries and customer relationships 1.
- Industry cyclicalityhigh
Semiconductor demand can fall sharply, and customer inventory digestion can reduce orders 12.
- Trade restrictions and materialsmedium
Chinese export restrictions and tariffs could disrupt supply of critical materials and affect costs 1.
- Purchase commitmentsmedium
Non-cancellable purchase commitments and take-or-pay agreements could generate costs if demand falls short of expectations 1.
- Inflation and marginsmedium
High inflation and rising energy and materials costs could limit the company's ability to maintain gross margins 2.
Investment thesis
What would need to be true (bull case)
- The company could benefit if expansion in AI data centers and robotics continues and if its order backlog keeps growing, as the second-quarter fiscal 2027 guidance suggests 3.
- Its leading position in magnetic sensors and TMR technology could support market share in demanding automotive and industrial applications 1.
- Non-GAAP margin and earnings per share improvement over recent quarters could point to rising operating efficiency 3.
What would break the thesis
- If semiconductor demand falls after the current growth period, sales could return to earlier levels and inventory could generate write-downs 2.
- Dependence on external fabs and single-source suppliers could limit the company's ability to respond quickly to unexpected demand or disruption 1.
- Competitive pressure and falling average selling prices could erode margins if the company fails to launch higher-value products 12.
What to watch
- Delivery of guided net sales of $265 million to $275 millionQ2 2027
- Non-GAAP gross margin trend against second-quarter guidanceQ2 2027
- Data center share of total sales and growth in new bookings2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (29 Oct 2026 · results).
The business
The company says its solutions integrate system-level intelligence directly into products, reducing the number of components a customer needs and improving performance, energy efficiency and safety 1. Its technology base is the 120V-capable BCD wafer process, which combines bipolar, CMOS and DMOS transistors on one chip and supports both sensing and power products 1.
Market context
The company defines its target market as automotive and industrial, including advanced industrial applications such as AI data centers, robotics and energy infrastructure 1. Rising semiconductor content per system is presented as the main driver of demand, not only unit volume 1.
Cyclicality in the semiconductor industry remains important. The company notes that demand has risen in recent quarters, but that growth periods have historically been followed by softening demand and inventory digestion 2. Higher energy and commodity prices could reduce end-market demand in some markets 2.
Trends
- Vehicle electrificationtailwind
The shift to electrified vehicles and 48V architectures increases semiconductor content per vehicle, which favors the company's powertrain and motor control products 1.
- AI data centerstailwind
Expansion of AI data centers raises demand for motor drivers in cooling and current sensors in power conversion, and the company says sales to this segment grew in fiscal 2026 13.
- Inflation and costsheadwind
Elevated inflation, rising energy and materials costs and tariff policies could raise the company's costs and limit its ability to pass increases on to customers, which could affect margins 2.
- Materials and trade restrictionsmixed
Chinese export restrictions on certain rare-earth elements and magnets, including samarium, have disrupted sourcing, and trade tensions may affect costs and market access 1.
Competitive position
The company says it faces larger competitors with greater financial, technical and wafer fabrication resources 1. Competitive pressure shows up as declining average selling prices and possible loss of market share 1.
Competition also comes from national policies that encourage domestic semiconductor supply chains, which could lead customers to seek local alternatives 1. The company's advantages rest on its proprietary technology, long customer relationships and broad magnetic sensor range 1.
- Larger, unnamed semiconductor companies
The company describes competitors with superior financial and manufacturing resources that can influence industry direction 1.
- Local producers in states with industrial policies
Governments supporting domestic semiconductor chains may favor local suppliers over the company 1.
- Alternative magnetic technology suppliers
Competition in different magnetic technologies may emerge as customers look for alternative solutions 1.
- Power circuit manufacturers
Competitors in power circuits may offer comparable integration for automotive and industrial applications 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Banca Europeană de Investiții acordă un miliard de zloți platformei poloneze Allegro pentru inteligență artificială și comerț digitalMoney.ro · 02 Jun 2026 · RO
The latest news item in our archive is from 02 Jun 2026; the newest SEC filing is from 30 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report30 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report07 Aug 2026Shareholder vote · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Jun 2026
- Current report18 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Annual report21 May 2026
- Current report13 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report07 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-27 · SEC / Allegro MicroSystems, Inc. · 21 May 2026
- [2] Form 10-Q, quarter ended 2026-06-26 · SEC / Allegro MicroSystems, Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Allegro MicroSystems, Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.