Allegro Microsystems Inc

Allegro MicroSystems issued second-quarter fiscal 2027 revenue guidance of $265 million to $275 million and non-GAAP earnings per share of $0.23 to $0.26, while projecting that full-year data center sales will more than double over fiscal 2026. CEO Michael Doogue said data center led first-quarter growth, rising 32% sequentially to a record 17% of total sales, with current sensors reaching 22% of data center sales. CFO Derek D'Antilio reported first-quarter sales of $259 million and non-GAAP EPS of $0.23, with gross margin of 51.1%, and said the company expects both automotive and industrial end markets to deliver mid-single-digit sequential growth in the second quarter. Management also expects robotics and automation to contribute 3% to 4% of fiscal 2027 sales and reiterated a path toward a target gross margin of 55% and beyond.

Allegro MicroSystems saw a sharp increase in demand and share price performance driven by its specialist semiconductor chips for the datacentre market, according to the WS Amati Global Innovation Fund's second quarter 2026 investor letter. The fund noted that while Allegro is better known as a sensor company for robotics, its datacentre chip business benefited from the broader AI investment surge. Allegro shares closed at $46.03 on July 24, 2026, with a market capitalization of $8.58 billion, gaining 31.09% over the past 52 weeks despite a one-month decline of 32.12%. The number of hedge funds holding the stock rose to 34 in the first quarter from 28 in the prior quarter.

Allegro MicroSystems shares benefited from a recovery in industrial and automotive end markets and increasing content in newer AI server architectures, according to ClearBridge Investments' Small Cap Growth Strategy second-quarter 2026 commentary. The strategy saw material gains in semiconductor holdings including Allegro MicroSystems and Lattice Semiconductors. Allegro MicroSystems closed at $50.07 per share on July 23, 2026, with a market capitalization of $9.33 billion, posting a one-month return of negative 16.81% and a 52-week gain of 42.91%. The Russell 2000 Growth Index rose 25.6% in the quarter, its third-best quarterly performance in two decades, driven by AI enthusiasm, biotech strength, and high-beta stocks. The ClearBridge strategy returned over 21% gross but lagged its benchmark due to weakness in certain healthcare and financial stocks and limited exposure to high-momentum AI names.

Allegro MicroSystems has introduced the A81415, the industry's first ASIL-D-certified PMIC that integrates a wheel-speed sensor interface. Designed for electromechanical braking systems, this single-chip solution eliminates up to nine external components and unlocks over 50% more board space, helping automotive designers streamline brake-by-wire architectures while reducing bill-of-materials costs. By consolidating power management and sensor decoding, the A81415 reduces latency in safety-critical loops and frees up MCU bandwidth for faster braking responses. The device is built to handle the rigorous demands of corner module electronics, offering a fail-operational foundation that is thermally robust and vibration-resistant, specifically tuned to support high-resolution sensing and clamping-force signals. The A81415 provides a clear migration path for moving from 12V to 48V braking systems without requiring bulky external protection, enabling Tier 1 suppliers to develop simpler, more scalable foundations for next-generation software-defined vehicles.

Analog chipmakers are emerging as beneficiaries of the artificial intelligence infrastructure boom, according to Bank of America. The firm expects most AI-related sales across the analog chip group to grow 50% to more than 100% this year, driven by massive power management needs in AI data centers. Analyst Vivek Arya noted that after a prolonged inventory correction, customers are beginning to restock analog hardware as industrial demand improves, creating a positive backdrop for the second half of 2026. Bank of America highlighted Analog Devices, ON Semiconductor, Texas Instruments, and Allegro MicroSystems as key names poised for further gains.

Allegro MicroSystems and Penguin Solutions shares surged 11% and 13.5% respectively as the semiconductor sector rebounded from a sharp selloff, fueled by bullish Wall Street updates. Broadcom gained about 4.2% after disclosing multi-year agreements with Apple through 2031 to supply custom ASIC silicon. UBS raised its third-quarter DDR contract-pricing forecast to a 32% quarter-on-quarter increase from 17% and reiterated DRAM undersupply until at least the second quarter of 2028, while Citi added an upside catalyst watch on Micron and BofA reiterated a Buy rating with a $1,550 price target, arguing memory stocks trade at a sub-par 10 times forward price-to-earnings ratio. Goldman's trading desk flagged an oversold buy-the-dip setup after momentum factors fell 24% from their peak, the largest drawdown since the first quarter of 2023. The recovery was also supported by cheaper oil after OPEC+ lifted output and ongoing attention on the memory super-cycle story ahead of Samsung's earnings later in the week.

Allegro MicroSystems introduced the A81415, the industry's first ASIL-D-certified Power Management IC to integrate a wheel-speed sensor interface, targeting electromechanical braking systems. The single-chip device decodes standard 2-level, PWM, and AK protocols, eliminating the need for a separate decoder IC and up to nine external components, which can save up to $4 in semiconductor bill-of-materials per vehicle and free over 50% of board space. Built on an automotive grade-0 process, the A81415 includes a buck-boost pre-regulator, five LDO regulators, and a single-inductor architecture, and when paired with the APM81815 pre-regulator and 48V gate drivers, it forms a fail-operational chipset scalable from 12V to 48V corner modules. The PMIC shares decoded wheel-speed data over SPI to reduce latency and free MCU bandwidth, while its low-noise rails are tuned for Allegro's XtremeSense TMR angle sensors. The product is on display at electronica Shanghai and is available for sampling and evaluation.

Component makers tied to the humanoid robotics supply chain rallied sharply on Tuesday as investors sought out specialist suppliers. Sensor makers Ouster, Cognex, and Allegro Microsystems closed up 15.6%, 5.9%, and 4.9% respectively, while edge AI vision processor maker Ambarella surged 28%. Motor makers like Nidec, RBC Bearings, Regal Beloit, and Ametek closed between 1% and 8% higher, with Regal Beloit gaining 8.3% after Kerrisdale Capital disclosed a long position citing the physical AI angle. AI brain maker NVIDIA gained 2.6%, battery maker Enersys rose 4.3%, and power electronics names such as Wolfspeed surged 9%. The moves highlight that component suppliers sell into multiple robot OEMs simultaneously, meaning any broad acceleration in humanoid build rates lifts the entire component tier. However, Reuters reported on June 29 that doubts are creeping into the broader AI trade, with a Bank for International Settlements warning that AI and automation asset valuations may be overextended, a caution directly relevant to high-multiple humanoid component names.

Shares of Allegro MicroSystems rose 5.7% after analysts at Mizuho and TD Cowen raised their price targets on the chip designer. Mizuho increased its target to $67 from $54, while TD Cowen lifted its target to $70 from $55. Both firms cited stronger demand for power semiconductors from AI data centers and the automotive sector, along with the resolution of customer de-stocking issues. The new targets reflect a more positive outlook on Allegro's future performance driven by long-term demand trends in its key markets.

Allegro MicroSystems was added to multiple Russell growth benchmarks and removed from several Russell value indices in late June 2026, while also appointing veteran semiconductor executive Brian C. White as an independent director and audit committee financial expert. The index reclassification reflects how the market already prices the stock at a premium sales multiple, aligning with its positioning as a growth-oriented semiconductor company tied to automotive electrification and AI infrastructure. The board appointment adds financial expertise but does not alter near-term fundamentals, which remain dependent on sustained AI and auto demand and execution on new product ramps. The company's narrative projects $1.4 billion in revenue and $223.5 million in earnings by 2029, requiring 16.8% annual revenue growth from a current net loss of $14.9 million.

A bullish thesis on Allegro MicroSystems, Inc. argues the market underappreciates its accelerating growth in AI infrastructure and automotive electrification. The fabless semiconductor company reported quarterly revenue of $229 million, up 29% year over year, with GAAP EBITDA of $27 million and net income of $8 million. Management expects industrial growth to lead upcoming quarters, driven by data center demand where long-term content per rack could rise from approximately $150 to $425. The thesis also points to emerging humanoid robotics as a future catalyst, with each robot potentially incorporating roughly 150 sensing ICs and 50 power ICs. Allegro carries a $285 million term loan against $163 million of cash, but improving profitability is expected to reduce leverage.

The nine processors and graphics chips stocks tracked by this publication reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 2.9% and next-quarter revenue guidance coming in 4.2% above expectations. Allegro MicroSystems posted revenue of $243.2 million, up 26.1% year-on-year and 3.2% above estimates, though it missed EPS forecasts. Lattice Semiconductor delivered the best performance with revenue of $170.9 million, a 42.2% increase that beat estimates by 3.6%, while Qualcomm was the slowest, reporting $10.6 billion in revenue, down 2.2% and in line with expectations but issuing weak guidance. Intel stood out with revenue of $13.58 billion, up 7.2% and beating estimates by 9.6%, and its stock has surged 93% since reporting. Qorvo reported $808.3 million in revenue, down 7% but beating estimates by 1%. Share prices across the group have risen 43.7% on average since the latest earnings results.

Allegro MicroSystems has surged more than 124% over the past six months, hitting a new 52-week high, driven by robust fiscal Q4 2026 earnings and record data center demand. On June 22, TD Cowen analyst Joshua Buchalter raised the price target on the stock from $55 to $70 and maintained a Buy rating, citing growing confidence in the company's long-term growth story and its exposure to two powerful secular trends. The firm sees Allegro well-positioned to deliver profitable mid-teens percentage growth over the long term. Earlier, on June 18, the company appointed Brian C. White as an independent director, bringing over 30 years of semiconductor and high-tech industry experience, including CFO roles at Ambarella, Maxim Integrated Products, and Integrated Device Technology.

Shares of Allegro MicroSystems, Lam Research, and Applied Materials surged in afternoon trading after President Trump announced that Apple had agreed to design and manufacture chips with Intel in the United States, a foundry validation the market had been awaiting for over a year. Allegro MicroSystems jumped 7.2%, Lam Research gained 6.2%, and Applied Materials rose 5.8%, as the deal lifted sentiment across the semiconductor industry. The rally was further supported by a 7-8% gain in Micron following analyst price target hikes from Stifel, Wedbush, Deutsche Bank, and TD Cowen, and by a broader macro tailwind from a 60-day ceasefire extension between the US and Iran that eased inflation concerns and lowered oil prices.

Allegro MicroSystems has appointed Brian C. White to its Board of Directors as an independent director, effective June 17, 2026. Mr. White brings over 30 years of semiconductor and high-technology leadership experience, having served as CFO at Ambarella, Maxim Integrated Products, and Integrated Device Technology. Chairman Joseph Martin highlighted his public-company CFO perspective, semiconductor industry experience, and governance background as valuable for Allegro's innovation roadmap and shareholder value creation. Mr. White currently also serves on the board of FormFactor as Audit Committee Chair and holds an MBA from the University of Notre Dame.