Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the Overlooked Tech Stocks to Invest In.
On October 31, 2025, Evercore ISI increased its price target on Allegro MicroSystems, Inc. (NASDAQ:ALGM) from $37 to $49, while maintaining an “Outperform” rating. The company’s bullish stance reflects strong automotive and data center cycles, and Evercore highlights the stock as a top SMID analog pick. Analysts’ optimism stemmed from a strong growth outlook, driven by a replenishment cycle and expanding data center opportunities.
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The day before, Allegro MicroSystems, Inc. (NASDAQ:ALGM) announced its second quarter results. The quarter marked 14% year-over-year growth in sales, bringing them to $214 million, thanks to 21% and 23% growth in the electric mobility, industrial and other segments. Additionally, non-GAAP EPS was $0.13, beating expectations. The strong performance in the quarter was driven by record demand for automotive sensors, sales of data center fan controller ICs, and rapid adoption of high-speed current sensors.
Near-term growth momentum continues with advances in the design of ADAS, xEV propulsion systems and data center power supplies. Meanwhile, long-term growth prospects remain strong, thanks to new high-voltage gate drivers for silicon carbide. As a result, Allegro MicroSystems, Inc. (NASDAQ:ALGM) expects third-quarter sales to be between $215 million and $225 million, gross margins to be in the range of 49%-51%, and non-GAAP EPS to be between $0.12 and $0.16.
Allegro MicroSystems, Inc. (NASDAQ:ALGM) advances automotive, clean energy and industrial automation by delivering efficient, high-performance and sustainable technology solutions.
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