New York, Jan 6, 2026, 14:01 EST — Regular session
- Allegro MicroSystems shares rise about 10% in Tuesday trading
- Wells Fargo adds ALGM to its Q1 2026 Tactical Ideas list with a $40 target
- Two fresh product launches target SiC power designs for AI data centers and EVs
Allegro MicroSystems (ALGM) shares jumped about 10% on Tuesday, with traders pointing to a bullish Wells Fargo call and a pair of fresh product announcements aimed at power systems for AI data centers and electric vehicles. The stock was up 10.5% at $31.43, after touching $32.33 earlier in the session.
The move matters because investors have been quick to chase signs that the long inventory overhang across parts of the chip supply chain is easing. Allegro sells sensors and application-specific power chips used in autos and industrial gear, where customer ordering can swing sharply as stock levels rise and fall.
Silicon carbide, or SiC, is used in high-voltage power systems because it can waste less energy as heat than traditional silicon. Gate-driver chips control the switching transistors, while galvanically isolated current sensors measure power flow without a direct electrical connection, helping designers meet safety and reliability needs.
Wells Fargo analyst Joe Quatrochi added Allegro to the bank’s Q1 2026 Tactical Ideas list, saying he expects fourth-quarter 2025 EPS — earnings per share — to show a “cont’d improvement in leading indicators as inv / sell-through dynamics normalize.” Sell-through refers to demand at the end customer. Wells has an Overweight rating and a $40 price target. TipRanks
On Monday, Allegro said it expanded its Power-Thru isolated gate-driver portfolio with the AHV85003/AHV85043 chipset, designed for high-voltage SiC power conversion in AI data centers, EVs and clean-energy systems. “We are redefining what engineers should expect from a gate driver,” said Vijay Mangtani, vice president and general manager of high voltage power products at Allegro. Allegro MicroSystems
In a separate release the same day, Allegro introduced the ACS37200 current sensor, which it said uses an ultra-low 50 micro-ohm (µΩ) conductor resistance to cut power loss and shrink system size in high-current designs. “Systems need to monitor, convert and deliver more power than ever before in the same or even smaller form factors,” said Matt Hein, business line director of current sensors at Allegro. Allegro MicroSystems
The product headlines landed as Wall Street warmed again to analog names. Microchip Technology raised its third-quarter net sales outlook on Monday, and “our bookings activity was very strong in the December quarter,” CEO Steve Sanghi said, adding to hopes the inventory correction is easing. Reuters
Broader markets were firmer, with investors positioning for this week’s jobs report for clues on the Federal Reserve’s next move on rates. Technology shares were among the gainers, Reuters reported. Reuters
But product launches can take quarters to translate into revenue, and tactical-idea calls can fade if guidance does not improve. Any slowdown in EV builds, weaker industrial orders, or sharper pricing pressure in power chips would test the rally.
