NEW YORK, Feb 23, 2026, 09:24 EST — Premarket
- ALGM stuck near $38.93 in premarket action, right in line with its Friday close.
- Shares jumped 7.36% Friday as Needham raised its price target to $45.
- Traders are watching to see if the rebound holds this week. Chip stocks keep swinging, buffeted by macro news and an earnings calendar that’s far from finished.
Shares of Allegro MicroSystems were little changed at about $39 ahead of Monday’s open, holding the ground gained in last week’s sharp rally. The auto and industrial chip maker’s brighter long-term guidance seems to be keeping investors interested.
Why now? Analyst day sent the stock zigzagging, and the new price target puts Allegro’s margin ambitions front and center—just as chip stocks are twitchy about the slightest shifts in demand forecasts.
U.S. equity futures are shaky ahead of the open. For stocks that have just bounced back, there’s not much room left to absorb another headline miss.
Allegro closed Friday at $38.93, up 7.36%. Earlier, the stock had tumbled—falling 7.44% on Feb. 18, then losing another 6.04% the next day, according to Investing.com data.
Needham analyst N. Quinn Bolton maintained his “buy” rating and raised his price target on the stock to $45, up from $41, according to GuruFocus. Gurufocus
Needham raised its price target on Allegro after attending the company’s analyst event, Investing.com reported. Allegro laid out a 3-to-5 year plan, calling for revenue growth in the “mid-teens” and pushing its non-GAAP gross margin target beyond 55%. For context, gross margin is simply sales minus the cost to produce goods. Investing
Allegro, based in Manchester, New Hampshire, makes power and sensing chips that are key for both automotive and industrial clients. Demand from electric vehicles and data centers has been a major driver lately. CEO Mike Doogue told analysts on the latest results call that automotive sales jumped 28% from a year earlier, with e-mobility up a striking 46%.
The company is introducing a new batch of current-sensing products aimed at high-voltage power conversion, targeting sectors like data centers and electric vehicles. According to the company, the ACS37017 sensor delivers consistent accuracy, holding up over time and through temperature swings.
Allegro shares rebounded, mirroring the 1.07% advance posted by the Philadelphia Semiconductor Index on Friday. Broad gains in the chip sector helped push names higher, with company news unfolding against what remains a robust run for semis.
Still, all that optimism hinges on Allegro’s execution. Investors want proof the company can lift margins and deliver on the bigger targets it’s laid out. If auto production slows, or if price competition picks up again in power and sensing chips, that could derail the plan.
