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ALGM vs MCHP
Which Stock Would AI Choose? Allegro MicroSystems (ALGM) vs. Microchip Technology (MCHP) Stock Comparison
Key Takeaways
- ALGM has delivered substantially stronger year-to-date performance compared with MCHP, reflecting differentiated exposure to high-growth areas such as automotive electrification and AI data-center infrastructure.
- MCHP maintains a broader product portfolio across microcontrollers and analog solutions, supported by consistent profitability and a recent strategic acquisition in artificial-intelligence hardware.
- Recent market activity shows ALGM experiencing volatility following an all-time high in late June, while MCHP has seen notable price pressure over the past 30 days amid broader semiconductor sector rotation.
- Both companies operate primarily in the semiconductor sector with significant automotive and industrial end-market exposure, yet ALGM emphasizes magnetic sensors and power management while MCHP focuses on embedded control and connectivity solutions.
- Sentiment toward ALGM has been supported by multiple analyst price-target increases earlier in the year, whereas MCHP reported robust fiscal fourth-quarter results in May that included sequential revenue growth.
- Upcoming catalysts include ALGM’s first-quarter fiscal 2027 earnings release scheduled for late July.
Introduction
Allegro MicroSystems (ALGM) and Microchip Technology (MCHP) represent two distinct approaches within the semiconductor industry, each serving overlapping yet differentiated end markets. This comparison examines their business models, recent stock behavior, and relative positioning to assist investors and traders evaluating opportunities in the technology sector. Market participants focused on semiconductor cyclicality, automotive electrification trends, and data-center infrastructure growth may find the analysis relevant for assessing risk-adjusted exposure between a specialized sensor and power-IC provider and a diversified embedded-control supplier.
ALGM Overview and Recent Performance
Allegro MicroSystems designs, develops, and markets sensor integrated circuits (ICs) and application-specific analog power ICs primarily for automotive and industrial applications. Its solutions support motion control, electrification, and energy-efficient systems, with notable presence in advanced driver-assistance systems (ADAS), electric-vehicle powertrains, robotics, and AI data centers. In recent weeks, the stock advanced to an all-time high near the end of June amid semiconductor-sector momentum and analyst price-target upgrades, followed by profit-taking that contributed to an approximately 8% single-session decline in late July. Year-to-date returns have remained robust, significantly outpacing the broader market. Sentiment has been influenced by strong prior-quarter revenue growth and product announcements, including a new safety power-management IC for electromechanical braking, while upcoming first-quarter fiscal 2027 results represent a near-term focus for investors.
MCHP Overview and Recent Performance
Microchip Technology is a broadline semiconductor supplier specializing in microcontrollers, analog, mixed-signal, connectivity, and timing products that address embedded control needs across industrial, automotive, consumer, aerospace, and communications markets. The company has maintained a long track record of non-GAAP profitability and reported fiscal fourth-quarter 2026 net sales of $1.311 billion, reflecting 35.1% year-over-year growth. In recent market activity, shares have declined approximately 19% over the past 30 days following earlier strength that carried the stock to a 52-week high in May. Developments include the July announcement of a definitive agreement to acquire Hailo, an artificial-intelligence processor company, alongside continued emphasis on data-center solutions expected to grow substantially in calendar 2026. Broader sector dynamics and profit-taking appear to have weighed on near-term price action.
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Head-to-Head Comparison
Allegro MicroSystems operates with a focused portfolio centered on magnetic sensors and power-management ICs, giving it concentrated exposure to automotive electrification and industrial automation trends. Microchip Technology offers a wider array of embedded solutions, including microcontrollers and connectivity products, which supports greater diversification across end markets but potentially dilutes upside from any single secular driver. Recent momentum favors ALGM on a year-to-date basis, while MCHP has encountered sharper short-term price pressure. Risk factors for ALGM include valuation compression following its rapid advance and dependence on cyclical automotive and industrial demand; MCHP faces integration risks from its Hailo acquisition and sensitivity to broader microcontroller inventory cycles. Sector exposure overlaps in automotive and industrial verticals, yet ALGM’s emphasis on sensing and power positions it differently from MCHP’s embedded-control orientation. Market sentiment has been more constructive toward ALGM through multiple analyst upgrades, whereas MCHP benefits from demonstrated earnings resilience in its most recent reported quarter.
Tickeron AI Verdict
Based on observable trend consistency, relative stability metrics, and positioning around high-growth catalysts such as automotive electrification and data-center expansion, Tickeron’s AI would currently assign a modestly higher probability of favorable near-term relative performance to ALGM. The assessment reflects stronger recent price momentum and analyst attention, tempered by the recognition that both equities remain subject to semiconductor cyclicality and macroeconomic influences.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ALGM is a Hold and MCHP is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ALGM’s FA Score shows that 0 FA rating(s) are green whileMCHP’s FA Score has 0 green FA rating(s).
- ALGM’s FA Score: 0 green, 5 red.
- MCHP’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ALGM’s TA Score shows that 2 TA indicator(s) are bullish while MCHP’s TA Score has 4 bullish TA indicator(s).
- ALGM’s TA Score: 2 bullish, 8 bearish.
- MCHP’s TA Score: 4 bullish, 3 bearish.
Price Growth
ALGM (@Semiconductors) experienced а -3.75% price change this week, while MCHP (@Semiconductors) price change was +6.55% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +12.00%. For the same industry, the average monthly price growth was -5.76%, and the average quarterly price growth was +53.24%.
Reported Earning Dates
ALGM is expected to report earnings on Oct 29, 2026.
MCHP is expected to report earnings on Aug 06, 2026.
Industries' Descriptions
@Semiconductors (+12.00% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| ALGM | MCHP | ALGM / MCHP | |
| Capitalization | 7.99B | 43.8B | 18% |
| EBITDA | 101M | 1.18B | 9% |
| Gain YTD | 62.434 | 27.985 | 223% |
| P/E Ratio | 612.14 | 366.68 | 167% |
| Revenue | 946M | 4.71B | 20% |
| Total Cash | 162M | 240M | 68% |
| Total Debt | 304M | 5.54B | 5% |
MCHP | ||
|---|---|---|
OUTLOOK RATING 1..100 | 61 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 90 Overvalued | |
PROFIT vs RISK RATING 1..100 | 83 | |
SMR RATING 1..100 | 90 | |
PRICE GROWTH RATING 1..100 | 62 | |
P/E GROWTH RATING 1..100 | 72 | |
SEASONALITY SCORE 1..100 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
| ALGM | MCHP | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 89% | 1 day ago 68% |
| Stochastic ODDS (%) | 1 day ago 77% | 1 day ago 68% |
| Momentum ODDS (%) | 1 day ago 76% | N/A |
| MACD ODDS (%) | 1 day ago 77% | N/A |
| TrendWeek ODDS (%) | 1 day ago 78% | 1 day ago 68% |
| TrendMonth ODDS (%) | 1 day ago 83% | 1 day ago 76% |
| Advances ODDS (%) | 1 day ago 81% | 1 day ago 67% |
| Declines ODDS (%) | 7 days ago 80% | 8 days ago 74% |
| BollingerBands ODDS (%) | 6 days ago 74% | 1 day ago 86% |
| Aroon ODDS (%) | 1 day ago 86% | 1 day ago 78% |
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ALGM and
Correlation & Price change
A.I.dvisor indicates that over the last year, ALGM has been closely correlated with MCHP. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if ALGM jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To ALGM | 1D Price Change % | ||
|---|---|---|---|---|
| ALGM | 100% | +3.20% | ||
| MCHP - ALGM | 70% Closely correlated | +7.25% | ||
| MCHPP - ALGM | 70% Closely correlated | +6.54% | ||
| MPWR - ALGM | 69% Closely correlated | -0.69% | ||
| VSH - ALGM | 68% Closely correlated | +9.75% | ||
| LSCC - ALGM | 67% Closely correlated | +8.51% | ||
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MCHP and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCHP has been closely correlated with MCHPP. These tickers have moved in lockstep 97% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCHP jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To MCHP | 1D Price Change % | ||
|---|---|---|---|---|
| MCHP | 100% | +7.25% | ||
| MCHPP - MCHP | 97% Closely correlated | +6.54% | ||
| ADI - MCHP | 80% Closely correlated | +5.09% | ||
| TXN - MCHP | 80% Closely correlated | +5.42% | ||
| NXPI - MCHP | 80% Closely correlated | +5.99% | ||
| KLIC - MCHP | 75% Closely correlated | +4.09% | ||
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