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Allegro, Onto Innovation, Badger Meter highlighted for durable growth
The pitch ties Allegro’s outlook to a 15% year over year jump in automotive revenue and growing data center momentum, including expectations for data center revenue to more than double this fiscal year.
MarketBeat Ratings highlights three industrial and semiconductor-linked stocks it views as sitting at the intersection of stability and growth, citing durable end markets and balance sheet positioning amid ongoing secular demand trends.
In the spotlight for electric vehicle and chip-related exposure is Allegro MicroSystems, which the outlet describes as a supplier of magnetic sensing integrated circuits and power semiconductors shipping more than 2 billion devices annually. MarketBeat Ratings points to automotive revenue rising 15% year over year last quarter, with bookings and design wins up 30% over the same period, and says automotive accounted for 71% of total sales in the company’s latest fiscal year.
The preview also notes Allegro’s data center business showed 32% sequential sales growth, and it expects data center revenue to more than double in the current fiscal year. The overall thesis is that semiconductor-related inspection and process control needs, along with persistent water infrastructure demand drivers, can support multi-year growth opportunities, according to the outlet.
For Onto Innovation, MarketBeat Ratings emphasizes its role in inspection and metrology for semiconductor manufacturers, describing offerings used for optical inspection, defect review, and process control systems as chips become more complex. The piece also includes Badger Meter as another example of exposure to water infrastructure trends, positioning the trio as companies it believes can balance steadier fundamentals with growth potential.