TacticScaleWhat Allegro Microsystems Does & How It Makes Money (ALGM)
Updated October 2026 · reflects Allegro Microsystems's latest reported financials
Chipmaker of magnetic sensors and power chips for cars and industry. It makes money selling sensor and power integrated circuits to original equipment manufacturers and distributors, mainly in automotive and industrial markets.
How Allegro Microsystems makes money
It makes money selling sensor and power integrated circuits to original equipment manufacturers and distributors, mainly in automotive and industrial markets. Sales go through its own sales force, third-party distributors, independent sales representatives and consignment.
What Allegro Microsystems does
Allegro MicroSystems, founded in 1990 and based in Manchester, New Hampshire, is a semiconductor company that focuses on two product groups: magnetic sensor ICs, which measure position, speed and electric current, and application-specific power ICs, including motor drivers, regulators, power management ICs, LED drivers and isolated gate drivers. Its chips handle the sensing, motion control and power management in complex electromechanical and power conversion systems. Most of its business comes from the automotive and industrial markets, and it is growing in advanced industrial areas such as AI data centers, robotics and energy infrastructure. It sells to OEMs and distributors through several channels and operates in the US, the rest of the Americas, Europe, Japan, Greater China, South Korea and other Asian markets.
Products & services
- Magnetic position sensor ICs
- Speed sensor ICs
- Electric current sensor ICs
- Motor driver ICs
- Power management and regulator ICs
- LED driver ICs and isolated gate drivers
What is Allegro Microsystems worth?
On an owner-earnings DCF, Allegro Microsystems's most-likely value is about $19 versus a recent price near $36 (45% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$7) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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