Track market-moving stories before they get noisy

Key Takeaways Allegro's thesis ties EVs, ADAS, AI data centers and robotics to broader semiconductor demand.Automotive generated $628.6 million, or 70.6% of fiscal 2026 revenue, keeping vehicle demand central.Fiscal 2026 revenue rose 22.8% to $890.1 million as non-GAAP EPS more than doubled to 54 cents. Allegro MicroSystems, Inc. (ALGM - Free Report) has moved beyond a narrow automotive chip story. Its investment case now rests on whether rising semiconductor content in electric vehicles, advanced driver assistance systems, artificial intelligence data centers and robotics can translate into steadier growth.

That shift matters because the stock no longer depends only on vehicle production. Investors are also watching margins, operating leverage and whether newer markets can reduce auto cyclicality over time.

How Allegro Taps Four Growth MarketsAllegro’s growth thesis centers on systems that need more sensing, motor control and power management. Its magnetic sensors provide current, position, angle and speed feedback, while motor drivers, isolated gate drivers and power integrated circuits support motion control and power conversion.

Those products map directly to electric vehicles, advanced driver assistance systems, AI infrastructure and robotics. Texas Instruments (TXN - Free Report) is relevant in the same broader analog and power-management landscape, while Infineon Technologies AG (IFNNY - Free Report) also targets automotive systems such as electric drivetrains, braking and steer-by-wire.

ALGM Still Runs Through AutomotiveAutomotive remains Allegro’s base business. In fiscal 2026, automotive revenues were $628.6 million, or about 70.6% of total revenues, showing that the company’s broader story still runs through vehicle demand.

That is a strength because Allegro has deep automotive relationships and products aligned with electric powertrains and advanced safety systems. It is also a concentration risk, since downturns or disruptions in the auto market remain an explicit business risk.

Allegro Finds New Fuel in Data CentersThe newer upside is coming from industrial and other markets, especially AI data centers. In the fourth quarter of fiscal 2026, data centers reached a record 14% of sales, rising 41% sequentially, while industrial and other sales increased 49% year over year.

These applications matter because Allegro’s motor drivers support data center cooling, while current sensors and isolated gate drivers address power efficiency and density. If adoption continues, non-automotive markets could diversify revenue and support a higher growth profile.

ALGM Profit Recovery Is Gaining TractionFiscal 2026 showed a clear financial recovery. Revenues rose 22.8% year over year to $890.1 million, and non-GAAP earnings per share more than doubled to 54 cents from 24 cents.

Free cash flow also reached a record $124.9 million. That combination explains why investors are paying closer attention to margin recovery, execution consistency and the company’s ability to turn sales growth into stronger earnings power.

What Allegro Signals Say NowThe bottom line is balanced. Allegro has strong long-term drivers in electrification, AI infrastructure and robotics, but valuation, cyclicality and execution risk still matter.

The stock currently carries a Zacks Rank #2 (Buy), with a VGM Score of B, Growth Score of A and Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Rank points to favorable near-term estimate support, while the Style Scores help investors evaluate the stock across growth, momentum and blended characteristics over a similar one- to three-month framework.

MANCHESTER, N.H., July 02, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro”) (Nasdaq: ALGM), a global leader in power and sensing solutions for motion control and energy-efficient systems, today introduced the A81415, the industry's first ASIL-D-certified Power Management IC (PMIC) to integrate a wheel-speed sensor interface. The new device provides electromechanical braking (EMB) designers with a substantially simplified, single-chip power and sensing foundation for next-generation brake-by-wire systems.

Brake-by-wire is fast becoming a foundational chassis technology in software-defined vehicles. But while much of the automotive industry’s design focus is on centralizing compute platforms, the physical act of stopping a vehicle happens at the wheel. This location places a hard set of demands on corner module electronics to deliver fail-operational power and accurate wheel-speed data in tight spaces that are vibration-prone and thermally stressed – all while meeting the highest functional safety bar.

Today, designers are forced to stitch together generic safety PMICs, separate wheel-speed decoders, and clusters of discrete power components. In addition to adding cost and consuming valuable board space, that approach multiplies potential failure points at the exact location where reliability matters most.

One Device, Built for the Task
With an on-chip wheel-speed sensor interface (WSSI), the A81415 safety PMIC decodes standard 2-level, 2-level Pulse Width Modulation (PWM), and 3-level AK protocols (standard and high-resolution) without complicated analog circuitry or a separate decoder IC. By incorporating a fully integrated buck-boost pre-regulator, five Low-Dropout (LDO) regulators, and a single-inductor architecture that requires no external switches or diodes, the A81415 eliminates up to nine external components and unlocks up to $4 in semiconductor bill-of-materials (BOM) savings per vehicle, delivering meaningful cost advantages at OEM production scale This unprecedented level of integration opens up more than 50% of usable board space to provide the brake caliper with critical design headroom.

Because the physical layer of the wheel-speed data is handled internally by the PMIC and the decoded data is shared over a Serial Peripheral Interface (SPI), the A81415 trims latency in the safety-critical loop and frees MCU bandwidth for faster braking response. Low-noise power rails are explicitly tuned to power Allegro's XtremeSense™ TMR angle sensors and ensure the entire commutation and clamping-force signal chain is optimized as one coherent, high-resolution system from wheel to caliper.

The 12V-to-48V Fast Track for Corner Modules
True brake-by-wire operation requires components capable of surviving the harshest electrical environments. Built on Allegro's proprietary automotive grade-0 process and paired with the APM81815 pre-regulator and 48V gate drivers, the A81415 forms a complete, fail-operational chipset. This modular approach provides Tier 1 suppliers with a fast track to migrate proven 12V braking architectures directly to next generation 48V corner modules without redesign or bulky external transient protection.

“Intelligent chassis systems demand that sensing and power electronics at the wheel act as one,” said Peter Wells, Business Line Director, High Performance Power at Allegro MicroSystems. “Allegro combined our wheel-speed sensing leadership and high-reliability power management expertise into our new PMIC to give our customers a simpler, safer and highly scalable foundation for modern vehicle brake-by-wire.”

A81415 Features and Benefits:

Integrated wheel-speed sensing: On-chip WSSI decodes 2-level, PWM, AK, and high-definition protocols, eliminating a separate decoder IC.Cost and space savings: Eliminates up to nine external components, saving up to $4.00 in semiconductor BOM per vehicle and over 50% of PCB area.ASIL-D and AEC-Q100 qualified: Dual watchdogs and built-in fault handling meet the highest safety standards without requiring external protection circuitry.12V-to-48V scalable: Operates natively in 12V systems with a simple upgrade path to 48V corner modules when paired with the APM81815 pre-regulator. Availability
Attendees of electronica Shanghai are invited to visit the Allegro MicroSystems booth at N5.300 to learn more. For more information, samples, or evaluation support, visit www.allegromicro.com/a81415.

About Allegro MicroSystems   
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in “automotive-grade” technology and a partner in our customers' success. For additional information, visit allegromicro.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding the anticipated performance, customer benefits, cost savings, and market opportunities associated with our A81415 PMIC, and the adoption of brake-by-wire and 48V automotive architectures, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “will,” “expect,” “anticipate,” “plan,” “project,” “believe,” “estimate,” “potential,” or other similar expressions. No forward-looking statement is a guarantee of future performance, and you should avoid placing undue reliance on these statements.

Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: our ability to successfully develop and commercialize new products; customer adoption rates of emerging automotive technologies; the timing and success of customer design wins; our ability to compete effectively; and other risk factors identified in our Annual Report on Form 10-K for the year ended March 27, 2026, as updated by our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release, and except as required by law, we assume no obligation to update them.

      Media Contact:    
Andrew MacLellan  
Corporate Communications   
(617) 633-4909

[email protected]       Allegro Contact:    
Ram Sathappan
Vice President of Global Marketing and Applications

[email protected] A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/12550647-57b4-4e54-9067-d30578336d29

A81415 PMIC A81415 Power Management IC