Allegro MicroSystems (ALGM)

Current sensing and power ICs (Allegro) — the measurement layer inside AI server and rack power, plus an automotive base

AI exposure 18% — derived from reported segment revenue, not asserted.

Where it sits

Silicon Layer → Analog, Logic & Mixed-Signal ICs · figures rebased to Q1 FY2027, reported 2026-07-30

Allegro makes magnetic sensor ICs and application-specific power ICs, so all of it sits in Analog, Logic & Mixed-Signal ICs — placement rule 1 places by what a company makes, and the automotive majority at 63.8% is the same silicon sold to a different customer. It earns its place on a disclosed figure rather than a story: data-centre sales were a RECORD 17% OF TOTAL REVENUE in Q1 FY2027, up 32% sequentially, the 10-Q attributes Industrial and Other's 58.8% growth "primarily" to data-centre demand, and management guides fiscal 2027 data-centre sales to more than double. Added 2026-10.

Reported segments

Automotive — 63.8% of revenue
Industrial and Other — 36.2% of revenue

Allegro MicroSystems ($259.243M in Q1 FY2027, quarter ended June 26 2026, +27% year on year) makes magnetic sensor ICs and application-specific power ICs — what its 10-Q calls "the sensing, motion control, and power management functions of complex electromechanical or power conversion systems". Automotive is $165.349M = 63.8% and Industrial and Other $93.894M = 36.2%. The AI story sits inside Industrial: data-centre sales were a record 17% of total revenue, up 32% sequentially, and the 10-Q attributes the segment's 58.8% growth "primarily" to data-centre demand, with management guiding fiscal…

How the 18% is built

Automotive — 63.8% of revenue × 1% AI-driven (disclosed). Magnetic sensing and power ICs for e-mobility, ADAS and comfort systems — no meaningful AI-infrastructure content
Industrial and Other — 36.2% of revenue × 47% AI-driven (disclosed). Data centre is 17 points of total revenue, which is 47% of this segment, at essentially full AI relevance; the remaining 19.2 points are robotics, energy infrastructure and industrial transport at a low single-digit share

Investment read

Moat. Hall-effect and magnetoresistive sensing is a specialised analog discipline with long design-in cycles, and Allegro's position in high-accuracy current sensing transfers directly from vehicle powertrains to server and rack power delivery — the physics is the same problem at a different voltage.

Bottleneck / pricing power. Design-in time rather than supply. A current sensor is specified into a power architecture and stays for the life of the platform, so share moves at design cycles, not quarters.

Role in the AI stack. The current-sensing and power-management silicon inside AI server and rack power.

Connected companies

ON Semiconductor (ON) — ALGM competes with: Direct rivalry in automotive sensing and power ICs, established by onsemi's own attempt to buy the company — an unsolicited $35.10/share bid valuing Allegro at ~$6.9bn, which Allegro's board rejected…
Infineon Technologies (IFNNY) — ALGM competes with: The two largest suppliers of automotive magnetic sensing — Infineon's Hall and magnetoresistive families against Allegro's — and both now sell current sensors into server power.
Texas Instruments (TXN) — ALGM competes with: Hall-effect current sensing head to head, in vehicle powertrain and in the same AI server power-supply socket.
Analog Devices (ADI) — ALGM competes with: Magnetic position and current sensing for automotive and industrial, overlapping Allegro's core.
Synopsys (SNPS) — ALGM is supplied by: EDA tools and IP for Allegro's mixed-signal sensor and power IC design
Cadence Design Systems (CDNS) — ALGM is supplied by: EDA tools and IP for Allegro's mixed-signal sensor and power IC design
Vertiv Holdings (VRT) — ALGM supplies: current sensors into rack power distribution and UPS, and motor drivers into cooling fans — Allegro names server power supplies, power backup systems and cooling fans as its data-centre products
Flex (FLEX) — ALGM supplies: high-speed current sensors designed into the AI server power supplies and power shelves Flex Power builds

Others in Analog, Logic & Mixed-Signal ICs

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