Evercore Remains Bullish on Allegro MicroSystems (ALGM), Cites Robust Automotive and Data Center Cycles

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is 1 of the overlooked tech stocks to put in.

On October 31, 2025, Evercore ISI accrued its terms people connected Allegro MicroSystems, Inc. (NASDAQ:ALGM) from $37 to $49, portion maintaining an “Outperform” rating. The bullish stance of the steadfast reflects robust automotive and information halfway cycles, with Evercore highlighting the banal arsenic a apical SMID analog pick. The expert optimism stemmed from a robust maturation outlook, driven by a restocking rhythm and expanding information halfway opportunities.

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On the erstwhile day, Allegro MicroSystems, Inc. (NASDAQ:ALGM) announced its second-quarter results. The 4th marked a 14% YoY maturation successful sales, taking them to $214 million, acknowledgment to 21% and 23% maturation successful e-Mobility and Industrial & Other segments. Furthermore, non-GAAP EPS came successful astatine $0.13, beating expectations. The robust show successful the 4th was driven by grounds automotive sensor demand, information halfway instrumentality operator IC sales, and accelerated adoption of high-speed existent sensors.

The short-term maturation momentum remains connected way with plan wins successful ADAS, xEV powertrains, and information halfway powerfulness supplies. Meanwhile, the semipermanent maturation outlook remains robust, acknowledgment to the caller high-voltage gross drivers for silicon carbide. As a result, Allegro MicroSystems, Inc. (NASDAQ:ALGM) expects Q3 income to prevarication determination betwixt $215 cardinal and $225 million, gross margins to beryllium wrong the 49%-51% range, and non-GAAP EPS to travel retired betwixt $0.12 and $0.16.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) advances automotive, cleanable energy, and concern automation by delivering efficient, high-performance, and sustainable exertion solutions.

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