Louis Navellier’s 5 Stock Picks with Huge Upside Potential

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

Navellier & Associates Q3 Stake Value: $3.7 million

Upside Potential as of December 4: 43.70%

Average Price Target: $39.20

Number of Hedge Fund Holders: 24

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is another semiconductor company on our list. It is based in Manchester, New Hampshire.

At the end of the third quarter, 24 hedge funds were long Allegro MicroSystems, Inc. (NASDAQ:ALGM), with a total stake value of $111.3 million.

A Buy rating and a $44 price target were maintained on Allegro MicroSystems, Inc. (NASDAQ:ALGM) on November 3 by Quinn Bolton at Needham.

Here’s what Artisan Partners said about Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its first-quarter 2023 investor letter:

“Among our top contributors were Lattice Semiconductor, Monolithic Power Systems, Allegro MicroSystems, Inc. (NASDAQ:ALGM), HubSpot and Wingstop. A strong area of the portfolio was our semiconductor holdings as Lattice Semiconductor, Monolithic Power Systems and Allegro Microsystems each outperformed. This is an area of the market where we have historically found many compelling opportunities, and we believe it continues to be an attractive area for long-term capital. Our high-level thesis is that industry consolidation is driving profitability improvements which, combined with top-line demand growth drivers, are breeding many interesting profit cycles. Please read our latest semiconductor industry whitepaper to dive into our thoughts on the industry. After the strong performance in the quarter, we trimmed Lattice Semiconductor in order to manage the position size and also trimmed Monolithic Power Systems due to the company outgrowing our small-cap mandate.”