Allegro MicroSystems (ALGM), is key fabless designer that has a large power chip and sensor portfolio. Historically ALGM has been primarily in the auto and industrial end market. and now has more customers in data center as well as in robotics.
Learn about Tunneling Magneto-resistance (TMR) sensor technology—an upgrade from older Hall Effect sensors—that is crucial for high-voltage applications in Electric Vehicles (EVs), green energy, and the imminent rise of industrial automation and robots. We explain the physics behind TMR and why Allegro is a leader in this high-precision, high-cost, and high-potential market.
We also review the latest financial guidance, which shows a sequential revenue increase in a typically seasonally slow quarter, signaling a recovery in the auto and industrial chip cycle. Discover why Allegro is positioned as one of a "basket of power and sensor chips" for the physical AI and robotics market and where they fit in the competitive semiconductor landscape.
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Chapters:0:00:00 - Allegro's Place in the Semiconductor Supply Chain (Fabless Designer)0:01:21 - The Sanken Electric, Polar Semiconductor, and TSMC Connection0:02:10 - Market Focus: Automotive and Industrial 0:03:22 - Magnetic Sensor Technology Evolution (Hall Effect to TMR)0:03:55 - Understanding Magnetic Fields and Hall Effect Sensors0:06:05 - Moving to Magneto-Resistive (MR/GMR) Sensors0:07:07 - Tunneling Magnetoresistance (TMR) Sensors0:08:00 - The High Cost and Future Adoption of TMR0:09:05 - Allegro's 48-Volt Ready Power Architecture0:09:50 - End Markets: Automotive (ADAS, Powertrain) and Industrial (Robotics, Data Centers, Solar)0:10:20 - Data Center Market Opportunity Per Server Rack0:11:00 - The Content Opportunity in Robotics and Physical AI0:12:35 - Power and Sensor Chips in Every Robotic Joint0:13:20 - Q3 FY2026 (Calendar Q4 2025) Guidance Overview0:14:15 - Breaking the Seasonal Trend (Sequential Revenue Increase)0:14:50 - Valuation and Growth Cycle Positioning0:15:47 - Investment Conclusion
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Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
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Nick and Kasey own shares of Allegro Microsystems