Is this Why Allegro MicroSystems, Inc. (ALGM) is a Buzzing AI Semiconductor Stock to Buy?

Allegro Microsystems Inc. (NASDAQ:ALGM) is one of the most buzzing AI semiconductor stocks to buy in 2026. On May 7, Jefferies analyst Blayne Curtis reiterated Allegro Microsystems Inc. (NASDAQ:ALGM) as Buy and raised the price target to $62 from $45. The price target hike comes amid growing confidence that the data center business is becoming a meaningful part of the company’s long-term outlook.

Is this Why Allegro MicroSystems, Inc. (ALGM) is a Buzzing AI Semiconductor Stock to Buy?

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The sentiments come on the heels of the leader in power and sensing semiconductor solutions delivering impressive fourth-quarter and full-year 2026 results. The company finished its fiscal 2026 on a strong sales and earnings momentum.

For the fifth consecutive quarter, sales grew to $243.19 million in the fourth quarter, compared with $192.82 million in the same quarter last year. Full-year net sales totaled $890.1 million compared to $725 million in 2025.

Diluted earnings per share more than tripled to $0.17 compared to $0.06 a share delivered the same quarter last year. Full-year earnings per share more than doubled to $0.54 per share, compared with $0.24 per share in fiscal 2025.

Allegro Microsystems expects sales in the first quarter of fiscal 2027 to range between $245 million and $255 million, representing 23% year-over-year growth at the midpoint of the range. Diluted earnings per share are expected to range between $0.19 and $0.23.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is a global semiconductor designer and manufacturer, specializing in sensor-integrated circuits (ICs) and application-specific analog power ICs. Their technology is primarily used to manage power and sense motion in the automotive, industrial, and consumer electronics markets.

While we acknowledge the risk and potential of ALGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALGM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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