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    Can Allegro MicroSystems’ (ALGM) New SiC Drivers Redefine Its High-Voltage Power Leadership Story?

    Simply Wall St·01/08/2026 17:29:34
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    • In early January 2026, Allegro MicroSystems expanded its Power-Thru isolated SiC gate driver lineup and introduced the ACS37200 ultra-low-loss, galvanically isolated current sensor, both aimed at boosting efficiency and power density in high-voltage EV, AI data center, industrial, and clean energy systems.
    • By combining integrated isolation, reduced component count, and multi-vendor SiC flexibility, these launches strengthen Allegro’s role in helping customers cut power loss, shrink board space, and simplify complex high-voltage designs across several electrification end markets.
    • We’ll now examine how Allegro’s new SiC gate drivers, which remove external isolated bias supplies, may influence its existing investment narrative.

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    Allegro MicroSystems Investment Narrative Recap

    To own Allegro MicroSystems, you need to believe in its ability to turn specialized power and sensing IP into profitable growth across electrification end markets, despite current unprofitability and auto exposure. The new SiC gate drivers and ACS37200 sensor support that story, but do not materially change the near term focus on improving earnings quality and managing pricing pressure, particularly as Allegro continues to spend heavily on R&D and CapEx while competing against aggressive automotive and industrial suppliers.

    Among recent developments, Wells Fargo adding Allegro to its Q1 2026 Tactical Ideas List stands out, as it ties directly to near term sentiment around margins, inventory normalization, and potential content gains. Against that backdrop, Allegro’s new gate drivers and ultra low loss sensors may help support the longer term case that its design wins in EVs, AI data centers, and clean energy can eventually justify its premium sales multiple and recent share price performance.

    Yet while the product story is appealing, investors should also weigh how persistent customer price negotiations could...

    Read the full narrative on Allegro MicroSystems (it's free!)

    Allegro MicroSystems' narrative projects $1.2 billion revenue and $249.0 million earnings by 2028. This requires 17.3% yearly revenue growth and a $317.6 million earnings increase from -$68.6 million today.

    Uncover how Allegro MicroSystems' forecasts yield a $38.42 fair value, a 25% upside to its current price.

    Exploring Other Perspectives

    ALGM 1-Year Stock Price Chart
    ALGM 1-Year Stock Price Chart

    Three Simply Wall St Community fair value estimates for Allegro span about US$29.01 to US$38.42, showing how far apart views on upside can be. When you set those against concerns about ongoing pricing pressure and high investment spend, it underlines why you may want to compare several independent perspectives before deciding how Allegro might fit into your portfolio.

    Explore 3 other fair value estimates on Allegro MicroSystems - why the stock might be worth as much as 25% more than the current price!

    Build Your Own Allegro MicroSystems Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Allegro MicroSystems research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free Allegro MicroSystems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allegro MicroSystems' overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.