ALGM
Allegro MicroSystems, Inc.

Allegro MicroSystems, Inc.ALGM

Technology · Semiconductors
28.17USD
+5.11%
Nov 08, 2026
ALGM overview ready
Semiconductor supplier for AI data-center power and thermal systems
Allegro is a semiconductor component supplier to AI-data-center power conversion and thermal-management equipment rather than a supplier of complete infrastructure systems.
Primary theme is lagging
Analog Semiconductors is lagging (-10.8pp vs SPY over 21 sessions; 3 of 10 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably….
Fundamentals under pressure
Ev / ebitda is weak.
Primary risk
Cyclicality in end markets affecting demand.
Market Nov 6Filing Sep 25Price action Nov 7Research Sep 28

Conviction Level

PriceAction3.4BusinessPerformance7.0BusinessQuality6.4Valuation5.7ThemeMomentum1.0Improving — Revenue is growing at a steady pace (+29% year over year). Diluted EPS moved to $0.12 from $0.03; the prior-year base is too small for a meaningful percentage. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−10.8pp
Theme return
−15.8%
Beating SPY
3 of 10
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$5.3B
Avg Volume (60D)
3.1M
60 sessions
Revenue Growth YoY
+22.8%
FY2026 vs FY2025
Gross Margin
+47.9%
Trailing twelve months
Operating Margin
+7.5%
Trailing twelve months
Free Cash Flow Yield
+2.0%
Distance from 200DMA
-30.9%
Next Earnings
2027-01-28
P/E
169.8x
EV / EBITDA
36.9x
EV / Sales
5.3x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 25, 2026
Filed balance-sheet data as of Sep 25, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+29% year over year). Diluted EPS moved to $0.12 from $0.03; the prior-year base is too small for a meaningful percentage.

Latest reported: Q2 FY2027, ended Sep 25
Revenue growthGrowing
+29%
$277M in Q2 FY2027 · YoY
YoY growth, last 4 quarters
  1. +29%
  2. +26%
  3. +28%
  4. +29%
Earnings growthGrowing
$0.12
Diluted EPS $0.12 vs $0.03 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
12.8%
+9.9 pp YoY · gross margin 49.2% (+2.9 pp)

Business Quality

6.4 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say fair; own history is the dissenting view.
Allegro MicroSystems, Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Allegro is a semiconductor component supplier to AI-data-center power conversion and thermal-management equipment rather than a supplier of complete infrastructure systems.
Opportunity
Moderate opportunity
Hyperscaler and colocation capital spending on high-density AI data-center electrical and liquid-cooling infrastructure.
Key risk
Cyclicality in end markets affecting demand.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Semiconductors
What they do

Allegro MicroSystems designs, develops, manufactures, and markets sensor and power integrated circuits used in electromechanical and power conversion systems. It operates by supplying semiconductor components primarily to original equipment manufacturers and distributors.

How it earns

The company generates revenue through transactional sales of semiconductor components to OEMs and distributors.

Products & services
Magnetic sensor ICs (position, speed, electric current sensors)
Power ICs (motor driver ICs, power management ICs, LED driver ICs, isolated gate drivers)
Customers & end markets
Original equipment manufacturers (OEMs)
Distributors
Market position

Niche semiconductor supplier specializing in sensor and power ICs for electromechanical and power conversion systems.

Demand drivers
Medium cyclicality

Demand is influenced by capital spending cycles in end markets like automotive, industrial, and data centers.

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