Allegro MicroSystems (ALGM) 53rd Annual Nasdaq Investor Conference summary

Recent business developments and leadership changes

• Celebrated five years as a public company, marking a period of strong automotive growth post-COVID.

• Underwent a CEO transition in February 2025, with a renewed focus on innovation and leveraging automotive expertise into industrial markets.

• Significant changes in senior leadership, including new SVPs of Sales and Products, to drive strategic direction.

• Enhanced internal models for inventory and entitlement, improving supply chain visibility and customer behavior management.

• Positioned at the end of a major inventory correction, with lessons learned and improved operational readiness.

Market environment and financial outlook

• December quarter guidance is up 4% sequentially, outperforming typical seasonality due to strong auto and data center demand.

• Automotive production expected to rise by 3 million units in 2025, with data center business rebounding to 8% of revenue.

• Distribution channel inventories are stabilizing, with under-shipment narrowing and inventory levels returning to target ranges.

• Automotive inventory remains lean in most regions, with distributors at 10-12 weeks on hand.

• Customers are willing to pay expedite fees and source from brokers, reflecting tight supply and cautious inventory strategies.

Automotive and electrification trends

• Content opportunity per vehicle is about $40 for ICE, $60-65 for hybrid/BEV (400V), and up to $100 for 800V BEV.

• Electrification and ADAS adoption are driving higher content per vehicle, with strong alignment to BEV and hybrid platforms.

• ADAS content is significant from level 1+ systems onward, with applications in steering and braking as vehicles become more autonomous.

• Company is well positioned for growth in regions with strong EV and ADAS adoption, especially China.