Best Smidcap Ideas: Secular + Cyclical Growth Combo

研报英文原文证据摘录

Best Smidcap Ideas: Secular + Cyclical Growth Combo

TD Cowen Allegro Microsystems

Global Research June 22, 2026

Automotive: xEV And ADAS Content Drivers Help Support Growth In Uncertain Demand

Backdrop

Automotive (~70% of the business today) is the primary driver of Allegro results near term,

benefiting from both electrification and autonomy themes driving a HSD%+ growth premium

to vehicle production SAAR. While some investors may be of the impression that Allegro's auto

franchise is largely geared towards full battery electric vehicles due to significant current

sensing and power management content uplift, the company's growth opportunity is built

upon ADAS feature adoption as well; on a blended basis, Allegro estimates that vehicle content

has risen from ~$40 in FY21, to ~$60 today, and could reach ~$100 by FY31, driven by ADAS

adoption, electrification, industry transition to 48V power architectures, and E/E system designs

migration to zonal architectures.

Auto SAM Totals $7.8B Total - 18% CAGR In ~$5B High-Growth Sockets

Source: Allegro Microsystems

Within the overall content number, Allegro expects vehicle electrification to be a robust growth

driver over ICE content. Moving from a 12V ICE platform to a PHEV on 12V - 400V architectures,

the company benefits from a >3x content boost with added content from current sensors and

IGD content. The content uplift is similar to a full battery electric vehicle, which we underscore

as positive given potential LVP mix shift to plug-in hybrids as auto OEMs adjust roadmaps to

the current regulatory environment. On the ADAS side, electrohydraulic and electromechanical

braking, electric power steering, corner modules, and steer-by-wire applications were noted as

key vehicle features driving 2x to >3x ADAS content gen/gen.