ALGM
Allegro MicroSystems, Inc.

Allegro MicroSystems, Inc.ALGM

Technology · Semiconductors
35.51USD
+0.03%
Sep 23, 2026
ALGM overview ready
Supplier of Motor-Driver ICs and Magnetic Sensors for AI Data Center Cooling
Allegro is a component supplier to data-center power and thermal subsystems, providing motor-driver ICs for cooling fans and magnetic current sensors used in server power supplies and backup-power systems.
Strong narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Data Center Power and Thermal Systems — component supplier.
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / ebitda is weak.
Primary risk
Cyclical semiconductor demand fluctuations.
Market Sep 22Filing Jun 26Price action Sep 22Research Aug 28

Conviction Level

NarrativeHeat9.5ThemeHeat9.3PriceAction5.4Valuation3.0CompanyPosition7.3
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$6.6B
Avg Volume (60D)
2.3M
60 sessions
Revenue Growth YoY
+22.8%
FY2026 vs FY2025
Gross Margin
+47.2%
Trailing twelve months
Operating Margin
+4.9%
Trailing twelve months
Free Cash Flow Yield
+1.3%
Distance from 200DMA
-11.1%
Next Earnings
2026-10-29
P/E
466.1x
EV / EBITDA
58.7x
EV / Sales
7.1x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 26, 2026
Filed balance-sheet data as of Jun 26, 2026

Fundamentals & Valuation

One of the two valuation perspectives says expensive; peers is the dissenting view.
Allegro MicroSystems, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command.

Company Research

Thesis
Allegro is a component supplier to data-center power and thermal subsystems, providing motor-driver ICs for cooling fans and magnetic current sensors used in server power supplies and backup-power systems.
Opportunity
High opportunity
Hyperscaler and colocation capital spending on high-density AI data-center electrical and liquid-cooling infrastructure.
Key risk
Cyclical semiconductor demand fluctuations.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Data Center Power and Thermal Systems, with moderate fit.
The company has a genuine, direct-revenue adjacency to the same AI data-center power-and-thermal demand driver: its fiscal 2026 data-center sales rose to 10% of annual revenue and 14% of fourth-quarter revenue, driven by cooling-fan motor drivers and high-speed current sensors for server power and backup systems.
Narrative HeatHot9.5 / 10
Theme HeatHot9.3 / 10
This reading is no longer current (last measured 2026-07-22). It is kept until the next scheduled measurement replaces it.

Business & Markets

Technology · Semiconductors
What they do

Allegro MicroSystems designs, develops, manufactures, and markets sensor integrated circuits and application-specific power ICs used in sensing, motion control, and power management for electromechanical and power conversion systems.

How it earns

The company generates revenue primarily through transactional sales of semiconductor products to original equipment manufacturers 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

Allegro MicroSystems is a specialized player focused on sensor and power ICs within the semiconductor industry.

Demand drivers
Medium cyclicality

Semiconductor demand is influenced by broader technology and industrial cycles but also benefits from structural trends in electrification and automation.