Allegro Microsystems Inc

Allegro MicroSystems designs chips that help machines sense motion and manage power. Its sensor integrated circuits (ICs, tiny chips combining many electronic parts) measure position, speed and electrical current, often by detecting magnetic fields. Its power ICs drive motors and regulate electricity. Allegro says it is the world's leading supplier of magnetic sensor ICs by market share, shipping about 2.1 billion units a year to more than 15,000 customers.

Its main markets are automotive and industrial. Customers include virtually all major carmakers and the leading tier-one suppliers that build systems for them. Its chips go into electric and hybrid powertrains, driver-assistance steering and braking, combustion engines and lighting. In AI data centers, its motor drivers run cooling fans and pumps, and its current sensors make power supplies more efficient. Data centers were a rising share of fiscal 2026 revenue. Robotics and energy infrastructure are other targets. A significant portion of sales goes through distributors.

Allegro is fabless: it designs its own chip processes but relies on outside factories to make the wafers. Partners include Polar Semiconductor in North America, and it has its own manufacturing operations in the Philippines. Of $890.1 million in sales in the fiscal year ended March 27, 2026, China accounted for 28%, other Asia 17.8%, Japan 17%, Europe 13.5%, the US 10.3% and South Korea 8.8%.

• In Q2 FY2027 (ended Sep 25, 2026), revenue was $276.9M, up 29.2% from a year earlier, and net income was $23.3M (+256.8%).
• For fiscal 2026, revenue was $890.1M (+22.8% year over year; +8.5% a year from FY2021 to FY2026) with a -1.7% net margin.

• Over FY2022–FY2026: $853.9M in buybacks and $0.00 in dividends.
• The company pays no regular dividend.
• Shares outstanding changed -1.8% from Jan 19, 2022 to Oct 26, 2026.

Rank among 1514 US companies

Market value at each year end

Allegro Microsystems’s market value went from $6.86B at the end of 2021 to $6.60B on Oct 28, 2026, down 4%; since the end of 2025 it is up 35%.

Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 6 sales ($960K), 2 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in ALGM

1. Heavy dependence on the auto industry. Substantial portions of Allegro's sales go to automotive suppliers. The company says past downturns and disruptions in the auto industry have hurt its results, and future ones could significantly harm them.
2. Reliance on a few outside chip factories. Allegro does not own wafer factories and relies on a limited number of outside ones and other suppliers. Late deliveries or yield problems (too many defective chips) could cost sales and customer relationships.
3. Key manufacturing operations in the Philippines. Allegro depends on its manufacturing operations in the Philippines. Any disruption there could delay shipments to customers and hurt its results.
4. Trade restrictions and heavy China exposure. Tariffs, export restrictions or retaliatory measures could limit Allegro's ability to sell to certain customers. That matters because China accounted for 28% of sales in fiscal 2026, its largest region.
5. Chip cycles and customer inventory swings. Chip demand runs in cycles, and customers cut orders while using up excess stock. Allegro may take charges on unsold inventory. Sales fell from $1.05 billion in fiscal 2024 to $725 million in fiscal 2025.
6. Larger rivals and falling selling prices. Allegro often competes with bigger companies that have more money and their own wafer factories. Average selling prices keep declining across the industry, and some countries give incentives to local competitors.

• Oct 29, 2026 Quarterly results released
• Aug 7, 2026 Shareholder vote results
• Jul 30, 2026 Quarterly results released
• Jun 18, 2026 Executive or board change; Investor presentation or announcement
• May 13, 2026 Executive or board change; Investor presentation or announcement
• May 7, 2026 Quarterly results released
• Jan 29, 2026 Quarterly results released
• Jan 21, 2026 Major agreement signed; New debt or financial obligation
• Jan 16, 2026 Investor presentation or announcement

Allegro does not pay a regular dividend, so the stock provides no income stream. Its last payout was $400 million, about $2.27 per share, in fiscal 2021. It paid nothing from fiscal 2022 through fiscal 2026. An investor who needs cash from this holding would have to sell shares. Allegro spent $853.9 million on buybacks in fiscal 2025 and none in fiscal 2023, 2024 or 2026. Even so, shares outstanding fell just 1.7% between October 2021 and July 2026.

The share price has swung hard. In the 2022 bear market, the stock fell 46.1% from January 3 to July 5, 2022. It got back to that peak by January 31, 2023, about seven months after the low. It has no price record for the 2008 crisis or the 2020 COVID crash. In the year to October 28, 2026, it fell as much as 54.8% from a high. A single stock carries more risk than a diversified fund.