• Earlier this week, Allegro MicroSystems announced plans to release its second quarter fiscal 2026 financial results before the market opens on October 30, 2025, followed by a conference call with its CEO and CFO to discuss the results and business outlook.
• At the same time, new export controls from China on critical minerals have heightened supply chain uncertainty for companies like Allegro that rely on rare-earth materials used in high-tech manufacturing.
• We'll examine how the increased supply chain risk from China's export controls could influence Allegro MicroSystems' investment narrative.

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Allegro MicroSystems Investment Narrative Recap

For investors considering Allegro MicroSystems, the core thesis centers on the company's exposure to electrification trends in automotive and industrial sectors, underpinned by growth in electric vehicles and automation demands. The recent announcement of China's export controls on critical minerals could heighten near-term supply chain risks, but the degree to which this disrupts Allegro’s key short-term growth catalysts, such as automotive design wins and product launches, may not be material if the company has ample inventory or diversified sourcing.

Amidst these uncertainties, Allegro’s upcoming Q2 fiscal 2026 results on October 30, 2025, and the accompanying executive conference call remain the most relevant announcement for investors tracking near-term momentum. This event is likely to provide the most current insights on supply chain management, customer demand, and any early impacts from the export controls that may affect outlook or margin expectations.

In contrast, the greatest risk investors should watch for relates to...

Allegro MicroSystems' outlook anticipates revenue of $1.2 billion and earnings of $249.0 million by 2028. This is based on analysts' forecasts of a 17.3% annual revenue growth rate and a $317.6 million increase in earnings from current earnings of -$68.6 million.

Uncover how Allegro MicroSystems' forecasts yield a $37.83 fair value, a 46% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community have posted fair value estimates for Allegro ranging from US$23 to US$37.83 per share. While these opinions vary widely, supply chain risks tied to China's export controls could shape the company’s performance in ways that aren't fully captured by these pre-news forecasts.

Explore 3 other fair value estimates on Allegro MicroSystems - why the stock might be worth as much as 46% more than the current price!

Build Your Own Allegro MicroSystems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Allegro MicroSystems research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Allegro MicroSystems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allegro MicroSystems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.