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ALGM vs MPWR
Which Stock Would AI Choose? Allegro MicroSystems (ALGM) vs. Monolithic Power Systems (MPWR) Stock Comparison
Key Takeaways
- Different scale and focus: ALGM is an automotive-centric sensing and power chipmaker, while MPWR is a larger power-management leader increasingly tied to AI data centers.
- Growth drivers diverge: MPWR's Enterprise Data segment is growing rapidly, whereas ALGM's momentum is anchored in automotive content expansion plus an emerging data-center and robotics opportunity.
- Valuation gap is wide: MPWR trades at a much richer forward multiple, reflecting its scale, profitability, and AI exposure.
- Recent momentum favors MPWR: MPWR has delivered outsized share-price gains over the trailing year, while ALGM has corrected from its recent peak.
- Risk profiles differ: ALGM carries cyclical and margin headwinds, while MPWR faces execution and valuation-related risks amid high expectations.
Introduction
This stock comparison examines two semiconductor companies at very different points in their growth trajectories. Allegro MicroSystems (ALGM) is a mid-cap specialist in magnetic sensing and power integrated circuits (ICs), heavily weighted toward automotive applications. Monolithic Power Systems (MPWR) is a large-cap provider of high-performance power-management solutions now closely associated with artificial intelligence (AI) infrastructure. Both companies benefit from electrification and data-center investment, yet their market positioning, relative performance, and risk profiles differ sharply. This comparison is most relevant for investors evaluating how to allocate capital across the analog and power semiconductor landscape as AI spending reshapes demand.
ALGM Overview and Recent Performance
Allegro MicroSystems (ALGM) designs magnetic sensors and power ICs used in automotive electrification, industrial automation, and, increasingly, data-center and robotics applications. Automotive remains its dominant end market, representing roughly 71% of recent fiscal-year sales, with electric-vehicle (xEV) and advanced driver assistance system (ADAS) content a key growth engine.
In recent weeks, the company has reported a sequence of stronger revenue results, including year-over-year sales growth exceeding 20% and a notable acceleration in data-center revenue, which management has described as quadrupling over the latest fiscal year. Analysts have responded by raising price targets, citing expanding content opportunities in next-generation AI racks and robotics. Despite this, the shares have corrected materially from their peak as investors weigh persistent margin headwinds tied to commodity costs—particularly gold—against the improving top-line trajectory. Sentiment has remained constructive but mixed, reflecting both optimism about new design wins and caution around near-term profitability.
MPWR Overview and Recent Performance
Monolithic Power Systems (MPWR) provides power-management semiconductors and modules that regulate energy in a wide range of systems, including AI servers, networking equipment, automotive, industrial, and consumer devices. Its Enterprise Data segment—power solutions for AI and server applications—has become its largest end market.
Over recent market activity, MPWR has delivered standout relative performance, with shares climbing sharply over the trailing year and gaining more than 70% at one point during the current year. Recent quarterly results showed revenue up roughly 26% year over year, led by near-doubling Enterprise Data sales and strong Communications growth tied to optical modules and AI networking switches. Management also issued guidance implying an acceleration in growth, and Wall Street analysts raised price targets significantly following the release. The shares pulled back modestly after earnings, but the overall trend remains upward, supported by robust AI infrastructure demand and a diversified customer base.
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Head-to-Head Comparison
The clearest contrast between these two stocks is scale and market positioning. MPWR's market capitalization is roughly an order of magnitude larger than ALGM's, and its revenue base and profitability are correspondingly more substantial. MPWR's growth is concentrated in AI-driven power delivery, with Enterprise Data and Communications segments expanding rapidly, while ALGM's growth remains anchored in automotive content gains supplemented by a newer, fast-growing data-center and robotics opportunity.
On valuation, the divergence is stark. MPWR trades at a premium forward price-to-sales ratio well above its semiconductor peer group, reflecting strong execution but also elevated expectations. ALGM trades at a more modest valuation but faces cyclical automotive exposure and thinner operating margins. Risk factors also differ: ALGM contends with commodity cost inflation and a concentration in the cyclical auto market, whereas MPWR's primary risk is the sustainability of its AI-driven growth rate and its rich multiple. Sector exposure is another point of divergence—both benefit from semiconductor demand, but MPWR is more directly leveraged to AI infrastructure spending, while ALGM offers broader electrification and industrial exposure.
Tickeron AI Verdict
Based on observable trend consistency, earnings momentum, and relative positioning, Tickeron's AI would likely favor MPWR at present. The company has demonstrated more consistent upward price momentum, stronger and more diversified growth catalysts, and a clearer leadership position in the fast-growing AI power-delivery market. Its scale and profitability also provide a degree of stability that ALGM, with its automotive cyclicality and margin pressures, currently lacks. That said, MPWR's elevated valuation introduces meaningful downside risk if growth expectations reset, while ALGM's lower valuation and expanding data-center and robotics content could support favorable risk-reward under the right conditions. The assessment is probabilistic rather than definitive, reflecting the trade-offs inherent in comparing a high-momentum large-cap with an emerging mid-cap challenger.
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 Buy and MPWR is a Buy.
ALGM in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 14, 2026
ALGM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 31 of 35 cases where ALGM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ALGM's RSI Oscillator exited the oversold zone, 29 of 33 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 88%.
Following a +9.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where ALGM advanced for three days, in 258 of 317 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 49 of 60 cases where ALGM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 82%.
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ALGM as a result. In 66 of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 89%.
The Moving Average Convergence Divergence Histogram (MACD) for ALGM turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 40 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 85%.
ALGM moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ALGM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
The Aroon Indicator for ALGM entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. ALGM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 81 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 98 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ALGM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock worse than average.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.902) is normal, around the industry mean (6.106). ALGM's P/E Ratio (381.625) is considerably higher than the industry average of (17.186). ALGM's Projected Growth (PEG Ratio) (22.820) is slightly higher than the industry average of (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (6.485) is also within normal values, averaging (46.468).
MPWR sees its Stochastic Oscillator ascends from oversold territory
On October 28, 2026, the Stochastic Oscillator for MPWR moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 59 instances where the indicator left the oversold zone. In 51 of the 59 cases the stock moved higher in the following days. This puts the odds of a move higher at over 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on MPWR as a result. In 72 of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
Following a +6.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where MPWR advanced for three days, in 241 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
MPWR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 225 of 283 cases where MPWR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for MPWR moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 35 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 83%.
The Moving Average Convergence Divergence Histogram (MACD) for MPWR turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 30 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
MPWR moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MPWR crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 86%.
The 50-day moving average for MPWR moved below the 200-day moving average on October 20, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MPWR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 32 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating fairly steady price growth. MPWR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MPWR's P/B Ratio (15.285) is slightly higher than the industry average of (6.106). P/E Ratio (73.566) is within average values for comparable stocks, (17.186). Projected Growth (PEG Ratio) (1.014) is also within normal values, averaging (3.803). Dividend Yield (0.007) settles around the average of (0.012) among similar stocks. P/S Ratio (17.153) is also within normal values, averaging (46.468).
ALGM | MPWR | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 100 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 98 | 32 | |
SMR RATING 1..100 | 89 | 44 | |
PRICE GROWTH RATING 1..100 | 64 | 62 | |
P/E GROWTH RATING 1..100 | 81 | 4 | |
SEASONALITY SCORE 1..100 | n/a | 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.
MPWR's Valuation (86) in the Semiconductors industry is in the same range as ALGM (100) in the null industry. This means that MPWR’s stock grew similarly to ALGM’s over the last 12 months.
MPWR's Profit vs Risk Rating (32) in the Semiconductors industry is significantly better than the same rating for ALGM (98) in the null industry. This means that MPWR’s stock grew significantly faster than ALGM’s over the last 12 months.
MPWR's SMR Rating (44) in the Semiconductors industry is somewhat better than the same rating for ALGM (89) in the null industry. This means that MPWR’s stock grew somewhat faster than ALGM’s over the last 12 months.
MPWR's Price Growth Rating (62) in the Semiconductors industry is in the same range as ALGM (64) in the null industry. This means that MPWR’s stock grew similarly to ALGM’s over the last 12 months.
MPWR's P/E Growth Rating (4) in the Semiconductors industry is significantly better than the same rating for ALGM (81) in the null industry. This means that MPWR’s stock grew significantly faster than ALGM’s over the last 12 months.
| ALGM | MPWR | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 88% | 3 days ago 83% |
| Stochastic ODDS (%) | 3 days ago 82% | 3 days ago 86% |
| Momentum ODDS (%) | 3 days ago 89% | 3 days ago 74% |
| MACD ODDS (%) | 3 days ago 85% | 3 days ago 65% |
| TrendWeek ODDS (%) | 3 days ago 81% | 3 days ago 79% |
| TrendMonth ODDS (%) | 3 days ago 86% | 3 days ago 75% |
| Advances ODDS (%) | 5 days ago 81% | 6 days ago 75% |
| Declines ODDS (%) | 3 days ago 82% | 4 days ago 70% |
| BollingerBands ODDS (%) | 3 days ago 89% | 3 days ago 77% |
| Aroon ODDS (%) | 6 days ago 78% | 3 days ago 80% |
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 overvalued. 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 while MPWR’s FA Score has 2 green FA rating(s).
- ALGM’s FA Score: 0 green, 5 red.
- MPWR’s FA Score: 2 green, 3 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 3 TA indicator(s) are bullish while MPWR’s TA Score has 5 bullish TA indicator(s).
- ALGM’s TA Score: 3 bullish, 6 bearish.
- MPWR’s TA Score: 5 bullish, 6 bearish.
Price Growth
ALGM (@Semiconductors) experienced а -3.02% price change this week, while MPWR (@Semiconductors) price change was +6.27% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -0.34%. For the same industry, the average monthly price growth was -18.87%, and the average quarterly price growth was -16.09%.
Reported Earning Dates
ALGM is expected to report earnings on Feb 02, 2027.
MPWR is expected to report earnings on Feb 11, 2027.
Industries' Descriptions
@Semiconductors (-0.34% 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.
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ALGM and
Correlation & Price change
A.I.dvisor indicates that over the last year, ALGM has been closely correlated with MPWR. 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 MPWR could also see price increases.
| Ticker / NAME | Correlation To ALGM | 1D Price Change % | ||
|---|---|---|---|---|
| ALGM | 100% | -7.57% | ||
| MPWR - ALGM | 70% Closely correlated | +1.07% | ||
| LSCC - ALGM | 70% Closely correlated | -9.74% | ||
| MCHPP - ALGM | 68% Closely correlated | -4.37% | ||
| ADI - ALGM | 68% Closely correlated | -3.73% | ||
| MCHP - ALGM | 68% Closely correlated | -4.66% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| HYBL | 27.43 | -0.05 | -0.16% |
| State Street Blackstone High Income ETF (HYBL) | |||
| KDVD | 29.05 | -0.18 | -0.63% |
| Keeley Dividend ETF (KDVD) | |||
| SEPU | 31.40 | -0.39 | -1.22% |
| AllianzIM U.S. Equity Buffer15 Uncapped Sep ETF (SEPU) | |||
| DSI | 142.93 | -3.12 | -2.14% |
| iShares ESG MSCI KLD 400 ETF (DSI) | |||
| ERY | 7.29 | -0.29 | -3.83% |
| Direxion Daily Energy Bear 2X ETF (ERY) | |||