Dj Vp Briansky Sells 27873 Of Allegro Microsystems Inc >Algm

What Happened?

A number of stocks fell in the afternoon session after reports revealed that China is moving to substitute US technology by adding domestic AI chips to its government procurement list. 

This development is part of a broader "buy local" campaign aimed at reducing China's reliance on foreign technology, particularly from the United States, amid persistent trade and tech tensions. The Chinese government has updated its guidelines to include AI chips from homegrown companies like Huawei and Cambricon. This policy shift effectively steers government and state-affiliated buyers away from American semiconductor firms. For US chipmakers, this signals a potential loss of market share in one of the world's largest tech markets, raising concerns among investors about future revenue streams from the region.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Analog Semiconductors company Himax fell 3.5%. Is now the time to buy Himax? Access our full analysis report here, it’s free for active Edge members.
• Processors and Graphics Chips company Intel fell 3.5%. Is now the time to buy Intel? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Marvell Technology fell 3.8%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free for active Edge members.
• Processors and Graphics Chips company Allegro MicroSystems fell 3.1%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company IPG Photonics fell 3.2%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Marvell Technology (MRVL)

Marvell Technology’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 9.2% on the news that concerns surfaced about the loss of key custom chip design contracts with major hyperscale cloud providers. 

A report indicated that Microsoft is discussing future custom AI chip designs with competitor Broadcom, a role typically associated with Marvell’s custom silicon business.Compounding this fear, a Benchmark analyst downgraded the stock to "Hold" citing a "high degree of conviction" that Marvell has lost Amazon Web Services' (AWS) next-generation Trainium 3 and 4 chip designs to Taiwanese competitor Alchip. Since Marvell's AI-driven growth story is heavily reliant on these custom accelerator (XPU) programs, the potential loss of two critical customers prompted investors to sell, outweighing the generally bullish long-term sentiment from other analysts.

Marvell Technology is down 21.4% since the beginning of the year, and at $89.26 per share, it is trading 29.2% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $2,079.

What Happened?

Shares of chip designer Allegro MicroSystems jumped 4.4% in the morning session after a broad 'Buy' rating consensus emerged from Wall Street analysts. 

The positive sentiment was supported by multiple reports showing strong agreement on the company's prospects. For instance, one analysis of nine analysts revealed that 88% recommended either a 'Buy' or 'Strong Buy'. Another report covering 18 analysts noted a 'Buy' consensus of 83%. This widespread optimism was also reflected in price targets. Across the various analyses, the consensus price target was set around $39 per share, which indicated a belief among analysts that the stock had room to grow. Overall, the collective view from market experts was decidedly favorable, which appeared to boost investor confidence.

Is now the time to buy Allegro MicroSystems? Access our full analysis report here.

What Is The Market Telling Us

Allegro MicroSystems’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock dropped 3.9% on the news that markets continued to retreat, as investors re-evaluated the high valuations of stocks that benefited from the artificial intelligence boom. 

After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

Allegro MicroSystems is up 22.8% since the beginning of the year, but at $28.01 per share, it is still trading 25.3% below its 52-week high of $37.51 from July 2025. Investors who bought $1,000 worth of Allegro MicroSystems’s shares 5 years ago would now be looking at an investment worth $1,033.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at processors and graphics chips stocks, starting with Qorvo .

The biggest demand drivers for processors (CPUs) and graphics chips at the moment are secular trends related to 5G and Internet of Things, autonomous driving, and high performance computing in the data center space, specifically around AI and machine learning. Like all semiconductor companies, digital chip makers exhibit a degree of cyclicality, driven by supply and demand imbalances and exposure to PC and Smartphone product cycles.

The 8 processors and graphics chips stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.1% since the latest earnings results.

Best Q3: Qorvo

Formed by the merger of TriQuint and RF Micro Devices, Qorvo is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.

Qorvo reported revenues of $1.06 billion, up 1.1% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was an exceptional quarter for the company with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “In the September quarter, ACG supported our largest customer’s smartphone ramp while continuing to serve Android’s premium and flagship tiers. In HPA, we grew our D&A and infrastructure businesses while supporting a recently launched smartwatch with our power management ICs. In CSG, we consolidated our organizational structure to improve profitability and prioritize opportunities in automotive, industrial, enterprise, and other markets. In the December quarter, we expect year-over-year revenue growth and margin expansion, supported by strategic customers in mobile and D&A markets."

Qorvo delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 7% since reporting and currently trades at $88.18.

Is now the time to buy Qorvo? Access our full analysis of the earnings results here, it’s free for active Edge members.

Qualcomm

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Qualcomm reported revenues of $11.27 billion, up 10% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a significant improvement in its inventory levels and revenue guidance for next quarter exceeding analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $171.01.

Is now the time to buy Qualcomm? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Allegro MicroSystems

The result of a spinoff from Sanken in Japan, Allegro MicroSystems is a designer of power management chips and distance sensors used in electric vehicles and data centers.

Allegro MicroSystems reported revenues of $214.3 million, up 14.4% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a mixed quarter as it posted EPS in line with analysts’ estimates.

As expected, the stock is down 15.1% since the results and currently trades at $26.09.

Read our full analysis of Allegro MicroSystems’s results here.

Penguin Solutions

Based in the US, Penguin Solutions is a diversified semiconductor company offering memory, digital, and LED products.

Penguin Solutions reported revenues of $337.9 million, up 8.6% year on year. This number missed analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

Penguin Solutions had the weakest performance against analyst estimates among its peers. The stock is down 23.3% since reporting and currently trades at $20.80.

Read our full, actionable report on Penguin Solutions here, it’s free for active Edge members.

AMD

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

AMD reported revenues of $9.25 billion, up 35.6% year on year. This result surpassed analysts’ expectations by 5.6%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ expectations.

AMD scored the biggest analyst estimates beat among its peers. The stock is down 13.7% since reporting and currently trades at $215.80.

Read our full, actionable report on AMD here, it’s free for active Edge members.