Time to Buy the 25% Sell-Off in This Top EV Supplier Stock?
Electric vehicle (EV) chip supplier Allegro MicroSystems (NASDAQ: ALGM) has been a hot stock since its late 2020 initial public offering (IPO) -- but things have gotten a bit more bumpy for shareholders as of late. The market deemed a reduction in valuation was necessary following the update for the first quarter of fiscal 2024 (the three months ended June 2023), and a sizable acquisition of a privately held semiconductor design start-up didn't help much.
Shares are now down 25% from all-time highs. Is it time to buy shares of this top EV supplier?
Allegro is a chip designer focused on power chips and magnetic sensors (which take advantage of the magnetic field that flow of electricity creates, more on that later). It provides these designs for automotive and industrial customers, and a bit for some consumer electronics companies, but Allegro has been leaning into the auto market as EV growth has been massive the last few years and is poised to continue.
Source Fool.com
