10 Must-Buy Semiconductor Stocks to Invest In Now 

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6. Allegro MicroSystems, Inc. (NASDAQ:ALGM)

Number of Hedge Fund Holders: 28

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the top must-buy semiconductor stocks to invest in now. Allegro MicroSystems, Inc. (NASDAQ:ALGM) received several rating updates following the release of its fiscal Q4 and full-year 2026 results. Mizuho lifted the price target on Allegro MicroSystems, Inc. (NASDAQ:ALGM) to $54 from $44 on May 8, maintaining an Outperform rating on the shares. The same day, Evercore ISI also lifted the price target on the stock to $53 from $49 and reiterated an Outperform rating on the shares.

The company finished fiscal year 2026 with solid momentum, delivering a fifth consecutive quarter of sales growth at $243 million. Management reported that on-GAAP EPS nearly tripled year-over-year to $0.17, while sales for the full year grew 23% to $890 million and non-GAAP EPS more than doubled to $0.54.

Mike Doogue, President and CEO of Allegro MicroSystems, Inc. (NASDAQ:ALGM) stated that the results show strength in Focus Auto sales, including xEV and ADAS, and Data Center, which reached a record 14% of total Q4 sales, adding that the company is seeing demand trends supporting continued growth as it enters fiscal 2027.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) develops and manufactures sensor integrated circuits and application-specific analog power ICs.

While we acknowledge the potential of ALGM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ALGM and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Must-Buy Semiconductor Stocks to Invest In Now.

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