Core Insights - Allegro MicroSystems has launched the AHV85003/AHV85043 chipset, expanding its Power-Thru™ isolated gate driver portfolio, which now includes a complete ecosystem for high-voltage silicon carbide (SiC) designs in AI data centers, electric vehicles, and clean energy systems [1][3] Group 1: Product Features - The new chipset simplifies power conversion design by eliminating the need for external isolated bias supplies, resulting in the industry's smallest solution footprint and reduced bill of materials (BOM) for achieving maximum power density in 800V systems [1] - Allegro's Power-Thru™ isolated gate drivers integrate signal and power across a single isolation barrier, reducing common-mode capacitance by up to 15 times and improving electromagnetic interference (EMI) performance by up to 20dB [2][7] - The expanded portfolio supports a multi-source SiC strategy, allowing designers to easily swap between SiC FETs from different vendors without redesigning their boards, with selectable gate-to-source voltages of 15V, 18V, and 20V [3] Group 2: Implementation Options - The AHV85311 integrated solution includes an isolation transformer for an all-in-one route to accelerate time-to-market, while the new AHV85003/AHV85043 chipset allows designers to optimize for cost and layout by selecting their own external transformer [4] - This dual offering provides customers with flexibility, whether they prefer the plug-and-play speed of an integrated solution or the granular control of a chipset, while maintaining high efficiency [5] Group 3: Company Overview - Allegro MicroSystems leverages over three decades of expertise in magnetic sensing and power ICs to enhance efficiency, performance, and sustainability across automotive, clean energy, and industrial automation sectors [6]

Core Insights - Allegro MicroSystems has introduced the ACS37200, a galvanically isolated current sensor that significantly enhances efficiency and power density in high-current applications, particularly in HEV/EVs, industrial automation, AI data centers, and solar inverters [1][4] Group 1: Efficiency and Power Loss Reduction - The ACS37200 features an ultra-low conductor resistance of 50 µΩ, which reduces power loss by 90% compared to traditional 0.5mΩ shunt resistors, decreasing wasted energy from 5 watts to just 0.5 watts [2][10] - This reduction in power loss directly contributes to improved HEV/EV range and lowers operational costs for data centers [2] Group 2: Size and Power Density - The ACS37200 is nearly 70% smaller than its predecessor, the ACS772, and offers a total footprint that is 20 times smaller than traditional shunt solutions, achieving a 95% reduction in board space [3][10] - The minimal heat generation allows for the elimination of bulky heatsinks, further enhancing compactness and power density [3] Group 3: Design Simplification and Safety - The fully integrated design of the ACS37200 simplifies the design process by replacing multiple discrete components with a single factory-calibrated IC, which reduces the bill of materials and supply chain complexity [5][10] - The sensor is certified to UL 62368-1, enhancing system safety and reliability by removing the need for complex high-voltage isolation designs [5][10]

Overview - Allegro has experienced a significant operational shift following a CEO change and has reported a strong performance in 2025, marking five years since going public [1] Automotive Industry - The automotive sector has shown robust growth over the past several years, continuing to recover from the impacts of COVID-19 [2] - An unusual inventory correction occurred in the automotive industry, where automakers and Tier 1 suppliers typically maintain low inventory levels, but increased inventory was observed starting in 2022 due to incentives from OEMs and historically low interest rates [2]

Allegro MicroSystems FY Conference Summary Company Overview - **Company**: Allegro MicroSystems (NasdaqGS:ALGM) - **Date**: December 10, 2025 - **Key Speakers**: Derek D'Antilio (CFO), Mark Gill (VP of Corporate Strategy) Industry Context - **Industry**: Automotive and Industrial Semiconductor Market - **Recent Changes**: CEO change in February 2025, with a focus on innovation and leadership restructuring Key Points Performance and Market Dynamics - Allegro celebrated its fifth anniversary as a public company, having experienced strong growth during the automotive upcycle post-COVID [3][4] - A significant inventory correction occurred in the automotive sector starting in December 2023, leading to a 30% sequential revenue decline in June 2024, particularly in China [4][5] - The company is optimistic about the end of the inventory correction, with improved internal models for inventory management and customer behavior [5][6] Revenue Guidance and Market Drivers - For the December quarter, Allegro guided a 5% sequential revenue increase, which is better than the typical seasonal decline of 5% [7][8] - Key drivers for this growth include: - Strength in the automotive sector, with an expected increase in auto production by 3 million units in 2025 [9] - A resurgence in the data center business, which accounted for 8% of revenue last quarter [9] Inventory and Consumption Insights - Allegro has observed lean inventories in the U.S., China, and Korea, while European inventories remain higher [13][14] - Distributors are back to a target inventory model of 10-12 weeks, indicating a more stable supply chain [13] Automotive Market Trends - The content opportunity per vehicle is approximately $9, with potential increases to $40 for internal combustion engine (ICE) vehicles and up to $100 for electric vehicles (EVs) [18][19] - Allegro is well-positioned to benefit from the shift towards electrification and advanced driver assistance systems (ADAS), which significantly increase content per vehicle [20][21] Regional Performance - In the September quarter, all regions grew except Europe, which faced challenges [24] - China represents about 27% of Allegro's business, primarily in automotive, with strong growth expected in exports [25] Industrial Market Insights - The industrial market is seeing growth in medical applications and electrification of the grid, with a focus on robotics as a significant future opportunity [26][28] - Allegro is actively engaging with various robotics companies globally, indicating a robust pipeline for future growth [31] Data Center and Power Management - Allegro's data center business has rebounded, now accounting for 8% of revenue, with a broader portfolio including power management solutions [33][35] - The company is well-positioned for the transition to higher voltage systems (48V to 800V), leveraging technology developed for the automotive sector [35][36] Sensor Technology and Competitive Position - Allegro claims a 23% market share in the magnetic sensing market, positioning itself as a leader over competitors like Infineon and Melexis [55] - The acquisition of TMR technology enhances Allegro's sensor portfolio, offering better precision and lower power consumption compared to traditional Hall Effect sensors [56][57] Future Outlook - The company anticipates significant growth in humanoid robotics, with content opportunities estimated at $100-$110 per robot [52] - Allegro is focused on design wins today to ensure meaningful revenue contributions from robotics and automation in the coming years [52] Conclusion Allegro MicroSystems is navigating a complex market landscape with a focus on innovation, inventory management, and strategic growth in both automotive and industrial sectors. The company is well-positioned to capitalize on emerging trends in electrification, robotics, and data center technologies, with a strong emphasis on enhancing its sensor capabilities.

Core Insights - The Macquarie Small Cap Value Fund Institutional class shares underperformed compared to its benchmark, the Russell 2000 Value, in Q3 2025 [3] Group 1 - The fund's performance lagged behind the benchmark, indicating potential challenges in the small-cap value sector [3]

Core Insights - Allegro MicroSystems, Inc. will present at the 53rd Annual Nasdaq Investor Conference on December 10, 2025, in London, UK [1] - The company's EVP and CFO, Derek D'Antilio, and VP of Corporate Strategy, Mark Gill, will participate in a fireside chat at 3:00 PM GMT [1] Company Overview - Allegro MicroSystems is a leader in power and sensing semiconductor solutions, focusing on motion control and energy-efficient systems [1] - The company has over three decades of expertise in magnetic sensing and power integrated circuits (ICs), driving advancements in automotive, clean energy, and industrial automation [3] - Allegro is recognized for its commitment to quality and innovation, particularly in "automotive grade" technology, enhancing efficiency, performance, and sustainability across various industries [3]

Core Insights - Allegro MicroSystems, Inc. (NASDAQ:ALGM) is identified as an overlooked tech stock with strong growth potential [1] - Evercore ISI raised its price target for Allegro from $37 to $49, maintaining an "Outperform" rating, driven by robust automotive and data center cycles [2] - The company reported a 14% year-over-year sales growth in Q2, reaching $214 million, with significant contributions from e-Mobility and Industrial segments [3] Financial Performance - Q2 sales reached $214 million, reflecting a 14% YoY growth, with e-Mobility and Industrial segments growing by 21% and 23% respectively [3] - Non-GAAP EPS for the quarter was $0.13, exceeding expectations [3] - Q3 sales are projected to be between $215 million and $225 million, with gross margins expected in the 49%-51% range and non-GAAP EPS between $0.12 and $0.16 [4] Growth Drivers - Short-term growth is supported by design wins in Advanced Driver-Assistance Systems (ADAS), electric vehicle (xEV) powertrains, and data center power supplies [4] - Long-term growth is bolstered by new high-voltage gate drivers for silicon carbide technology [4] - The company is advancing in automotive, clean energy, and industrial automation sectors by providing efficient and sustainable technology solutions [5]

Core Insights - The article highlights the significant gains of major chip companies, specifically Nvidia and Broadcom, which have seen stock price increases of 278% and 224% respectively since early 2024 [1]. Group 1: Company Performance - Nvidia has experienced a stock price increase of 278% since early 2024, indicating strong investor interest and confidence in its performance in the AI sector [1]. - Broadcom's stock has risen by 224% in the same period, reflecting its robust position in the semiconductor market [1]. Group 2: Market Trends - The focus on prominent chip manufacturers is driven by the growing demand for AI technologies, which has led to increased investment in these companies [1].

Core Insights - The article discusses the current state of the tech market, particularly focusing on AI-related stocks and the emergence of overlooked tech stocks that may present investment opportunities amidst market volatility and valuation concerns [2][5]. Market Overview - U.S. AI-related stocks experienced a decline, with SoftBank Group losing nearly $50 billion in market capitalization [2]. - Goldman Sachs CEO anticipates a 10-20% market drawdown within the next two years, while the IMF and Bank of England foresee an AI bubble emerging soon [2]. - AI-linked ETFs have shown significant volatility, with performance spreads of 60% among nearly 400 thematic ETFs in 2025 [3]. Company Performance - Bitdeer Technologies Group (NASDAQ:BTDR) reported a 173.6% year-over-year revenue increase to $169.7 million in Q3 2025, driven by self-mining operations [12]. - Alkami Technology, Inc. (NASDAQ:ALKT) achieved a 31.5% year-over-year revenue growth to $113 million in Q3 2025, with annual recurring revenue surging 31% to $449 million [16][17]. - Allegro MicroSystems, Inc. (NASDAQ:ALGM) reported a 14% year-over-year sales growth to $214 million, driven by demand in automotive and data center sectors [22]. Investment Opportunities - The article emphasizes the potential of overlooked tech stocks that combine innovation with operational prudence, suggesting they may offer sustainable growth avenues [5]. - Bitdeer Technologies Group has a projected upside potential of 127.16% and is focusing on AI cloud infrastructure and Bitcoin mining solutions [10][14]. - Alkami Technology has an upside potential of 60.32% and is expanding its client base significantly [15][19]. - Allegro MicroSystems has an upside potential of 44.98% and is benefiting from robust automotive and data center cycles [20][21]. Methodology for Stock Selection - The selection of overlooked tech stocks involved scanning financial media and online screeners for companies with a market capitalization over $2 billion and an upside potential of at least 10% as of November 12, 2025 [7]. - The analysis also considered hedge fund ownership, focusing on stocks with relatively lower hedge fund holdings compared to industry peers [7][8].

Group 1 - eBay Inc reported a significant increase in revenue, driven by strong demand in the e-commerce sector, with a year-over-year growth of 12% [1] - Impinj Inc has shown promising growth in its RFID technology segment, with a 15% increase in sales compared to the previous quarter, indicating a robust market demand [1] - Allegro Microsystems Inc has expanded its market share in the semiconductor industry, achieving a 10% rise in revenue, attributed to increased adoption of electric vehicles [1] Group 2 - The overall market analysis indicates a positive trend in the technology and e-commerce sectors, with companies leveraging innovative solutions to capture consumer interest [1] - The semiconductor industry is experiencing a surge in demand, particularly from the automotive sector, which is driving growth for companies like Allegro Microsystems [1] - The report highlights the importance of adapting to market changes and consumer preferences, as companies that innovate are likely to outperform their competitors [1]