@0xobsidianenoch
Macro Monday: Allegro MicroSystems ($ALGM)
AI infrastructure is not only about GPUs.
Allegro sits at the intersection of sensing, power, motion, and electrification.
Q1 FY2027 snapshot:
• Revenue: $259.2M, +27% YoY
• Non-GAAP gross margin: 51.1%
• Non-GAAP operating margin: 19.4%
• Non-GAAP EPS: $0.23
• Data center: 17% of sales, a record
My 5–10 year thesis:
EVs, ADAS, robotics, industrial automation, and AI data centers all need sensors, current monitoring, power control, and motion data.
What I like:
• Faster revenue growth
• Rising data-center exposure
• Industrial strength
• 50%+ non-GAAP gross margin
What I am watching:
• Premium valuation
• Auto concentration
• Semiconductor cyclicality
• AI capex risk
• Free-cash-flow conversion
Allegro becomes more interesting when viewed as a supplier connecting AI to physical motion and electrical power.
Opportunity is real. Valuation demands execution.
NOT A RECOMMENDATION TO BUY, SELL, OR HOLD!
#ALGM #Semiconductors #AI
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