EV Content and Data Center Expansion Strengthen Allegro Microsystems’ (ALGM) Long-Term Thesis

What happened: Conestoga Capital Advisors' Q3 2026 investor letter highlighted Allegro MicroSystems (NASDAQ:ALGM), a maker of sensor and power ICs for automotive and industrial customers, as a position the firm initiated. Key numbers: ALGM closed at $35.37 per share on October 28, 2026, with a market capitalization of $6.59 billion. Why it matters: Conestoga cited rising chip content per vehicle, lengthy qualification cycles that make ALGM's chips difficult to replace, and growing data center demand as support for long-term growth. Market: -12.5% today ($31.48), +17.0% YTD, 0.3x vol — as of 14:19 UTC Verified: Q3_2026 (Oct 29) EPS $0.26 vs $0.24 est, +6.3% beat; next print ~Jan 28

Conestoga Capital Advisors' Q3 2026 investor letter highlighted Allegro MicroSystems (NASDAQ:ALGM), a maker of sensor and power ICs for automotive and industrial customers, as a position the firm initiated.

Conestoga cited rising chip content per vehicle, lengthy qualification cycles that make ALGM's chips difficult to replace, and growing data center demand as support for long-term growth. Market: -12.5% today ($31.48), +17.0% YTD, 0.3x vol — as of 14:19 UTC Verified: Q3_2026 (Oct 29) EPS $0.26 vs $0.24 est, +6.3% beat; next print ~Jan 28