Allegro MicroSystems, Inc. (ALGM): A Bull Case Theory 

We came across a bullish thesis on Allegro MicroSystems, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on ALGM. Allegro MicroSystems, Inc.’s share was trading at $28.41 as of October 2nd. ALGM’s trailing and forward P/E were 62.61 and 52.63 respectively according to Yahoo Finance.

Allegro MicroSystems (ALGM) operates in a critical yet often overlooked segment of the semiconductor ecosystem, focusing on motion control and power management ICs. The company is a leading player in the automotive sector, where its magnetic sensors and high-voltage power semiconductors are integrated into electric drivetrains, advanced driver-assistance systems, and battery management platforms. These design wins are highly sticky, as automakers and suppliers are reluctant to switch vendors mid-cycle, providing ALGM with strong multi-year revenue visibility once a platform ramps.

Beyond automotive, ALGM’s products support energy-efficient power conversion in data centers, industrial automation, and renewable energy, positioning the company at the intersection of electrification and energy efficiency—two powerful secular growth trends. While peers such as Texas Instruments and Infineon are larger, ALGM’s sharper focus gives it outsized exposure to the fastest-growing end markets in semiconductors. On valuation, the company trades at a modest EBITDA premium compared to TXN and ADI, though at a discount on revenue multiples.

Given its growth prospects, this premium appears warranted, particularly as EBITDA is expected to grow 59% in FY26 and 62% in FY27, making today’s 27x EBITDA multiple attractive. Technically, the stock sits just above a multi-year support level and is trading around its 100- and 200-day moving averages and the VWAP, with the 0.618 Fibonacci level providing additional downside support. Taken together, ALGM offers a compelling mix of durable automotive visibility, secular growth exposure, robust financial momentum, and a favorable technical setup, presenting an appealing opportunity for investors.

Previously we covered a bullish thesis on Texas Instruments Incorporated (TXN) by The Wolf of Harcourt Street in January 2025, which highlighted the company’s manufacturing investments, dividend growth, and early signs of stabilization in analog revenue. The company’s stock price has depreciated approximately by 1.59% since our coverage. The thesis still stands as TXN’s scalable capacity supports long-term competitiveness. Oliver | MMMT Wealth shares a similar view but emphasizes ALGM’s niche exposure to automotive and electrification markets.

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Disclosure: None.