Allegro MicroSystems (ALGM) Shares Rise 1.6% After BofA Raises Price Target to $39

Allegro MicroSystems (NASDAQ:ALGM) shares rose 1.6% to $33.50 on January 21, 2026, after BofA Securities increased its price target to $39 from $36, maintaining a "Buy" rating. The 8.33% hike reflects optimism around modest Q4 beats and Q1 upside for diversified analog semiconductor stocks. BofA cited broad industrial semiconductor recovery, favorable pricing trends, and strong AI-related demand as key drivers. Today’s move follows recent sector strength fueled by TSMC’s record Q4 revenue and raised capital spending, signaling sustained AI hardware demand. Peers like Nvidia, AMD, and ASML also gained. Despite the rally, ALGM remains 10.7% below its 52-week high of $37.51 set in July 2025 and is up 24.5% year-to-date. Over the past year, the stock has seen 32 moves exceeding 5%, underscoring its volatility. Five years ago, a $1,000 investment would now be worth $982.43.