EL7.AI
StocksMedium•31 July 2026•
1 min read

Allegro MicroSystems Surges on AI Data Center Demand and EV Growth

Key Facts

1Allegro MicroSystems reported Q1 revenues of $259.24 million, a 27.5% increase from the prior year.
2Morgan Stanley raised its price target for ALGM to $52 while maintaining an Overweight rating.
3Sales in the AI data center segment more than doubled, reaching a record 17% of total company sales.

Amid the rapid expansion of artificial intelligence infrastructure, Allegro MicroSystems reported strong Q1 results that reflect its direct benefit from this technological shift. The company posted revenues of $259.24 million, representing a 27.5% increase from the prior year and exceeding analyst expectations. The AI data center segment emerged as a primary growth engine, with sales more than doubling to reach a record 17% of total company revenue.

These positive results were further bolstered by a 30% increase in automotive design wins, driven by the global shift toward vehicle electrification. According to reports, Morgan Stanley raised its price target for ALGM to $52 while maintaining an Overweight rating, reflecting confidence in the company's ability to capture market share in power integrated circuits and sensors. Per market data, the company's market capitalization stood at approximately $7.76 billion alongside these developments.

Looking ahead, the company provided a strong outlook for the second quarter based on sustained demand for power solutions in data centers and robotics. Recent data shows the U.S. Federal Reserve held interest rates at 3.75% during its July 29 meeting, a key factor influencing financing costs across the technology sector.