Needham Raises PT on Allegro MicroSystems, Inc. (ALGM) Stock

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is among the 10 Unstoppable AI Stocks to Invest In Now.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the Unstoppable AI Stocks to Invest In Now. On February 19, Needham lifted its price objective on the company’s stock to $45 from $41, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, the firm remains optimistic about the company’s Analyst Day presentation. The presentation exhibited a 3 - 5 year target financial model, which included revenue growth of mid-teens as well as gross margins of more than 55%.

In a separate release, Jefferies lifted its price objective on Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock to $45 from $43, while keeping a “Buy” rating, as reported by The Fly. The analyst said that the company’s margin guidance was lower, but this was expected. That being said, the structural growth profile of Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s business continues to shift higher and is associated with new growth opportunities in AI data centers as well as Robotics.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is engaged in designing, developing, manufacturing, and marketing sensor integrated circuits (ICs) and application-specific power ICs. These are for motion control as well as energy-efficient systems.

While we acknowledge the potential of ALGM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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