11 Best Lidar Stocks to Buy According to Hedge Funds

4. Allegro MicroSystems, Inc. (NASDAQ:ALGM)

Number of Hedge Fund Holders: 14

The magnetic sensors and power semiconductors on which lidar systems rely to function properly are some of Allegro MicroSystems, Inc.’s (NASDAQ:ALGM) leading products. You will also find them in electric vehicles, energy-efficient devices, and industrial automation systems.

Just recently, the company launched two new current sensor integrated circuits (ICs). These sensors deliver higher isolation in a 40% smaller footprint compared to existing 16-pin packages. One of the sensors – the ACS37030MY – offers five times faster response time than existing solutions, and it targets wide bandgap GaN devices. Ram Sathappan, the company’s Vice President of Global Marketing and Applications, commented on the new products:

“We’re excited to introduce our latest current sensor ICs, as Allegro continues to push the boundaries of sensor IC technology. Our newest sensors establish new standards for precision and reliability, empowering customers to overcome design and efficiency standards, while also demonstrating how our technology is driving a smarter, more efficient future.”

Moves like these are the reason Allegro MicroSystems is able to deliver on its financial commitments. The company introduced a record number of new magnetic sensing and power products to the market in Q3 2025, which is why it reported solid financials. In the quarter, total net sales reached $177.9 million. More than half ($130.1 million) of the revenue came from selling components to companies that develop LiDAR systems. The company’s leadership believes the positive trend will hold, and it expects the new sales for Q4 fiscal 2025 to range from $180 million to $190 million. They also expect the non-GAAP diluted EPS to increase to between $0.03 and $0.07.