10 Stocks Lead Monday’s Charge Amid Market Bloodbath

1. Allegro MicroSystems Inc. (NASDAQ:ALGM)

Allegro soared by 14.89 percent on Monday to finish at $25.62 apiece as investors gobbled up shares in the company following news that it is set to be acquired by its competitor ON Semiconductor.

Citing people privy to the matter, Bloomberg News reported that ON Semiconductor has been working with advisers in recent months for its planned acquisition of ALGM albeit the latter has not indicated if it would be open to a potential sale.

The report added that other potential companies could still emerge to compete with ON Semiconductor to expand their automotive capabilities.

On Monday, ALGM appointed Mike Doogue as its new president and chief executive officer, replacing Vineet Nargolwala.

While we acknowledge the potential of ALGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALGM but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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