Wall Street Volatility Returns as Microsoft Shares Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy ALGM?
Source: Benzinga
- Microsoft Stock Plunge: Microsoft shares fell 12%, marking the largest single-day drop since March 2020, as investors expressed concerns over slowing Azure cloud growth and cautious guidance, resulting in a market cap loss of approximately $400 billion.
- Tech Sector Decline: The Nasdaq 100 dropped 1.6% and the S&P 500 fell 1%, reflecting weakened market confidence in tech stocks, particularly amid questions regarding the pace of AI monetization following Microsoft's results.
- IBM's Strong Performance: International Business Machines Corp. saw a 6% increase in stock price after reporting better-than-expected quarterly results and guidance, standing out as one of the few bright spots in a weak session for large-cap tech stocks.
- Commodity Market Fluctuations: Gold prices tumbled 3% to $5,250 and silver slid 4% to $112, while copper rose 2.5% to a record $6.20 per pound and WTI crude climbed 3.5% to $65 per barrel, indicating a divergence in commodity market trends.
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Analyst Views on ALGM
Wall Street analysts forecast ALGM stock price to rise
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 32.870
Low
35.00
Averages
39.14
High
49.00
Current: 32.870
Low
35.00
Averages
39.14
High
49.00
About ALGM
Allegro MicroSystems, Inc. is engaged in power and sensing semiconductor solutions for motion control and energy-efficient systems. The Company is a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (ICs) and application-specific power ICs, enabling the important emerging technologies in the automotive and industrial markets. Its sensor ICs enable its customers to measure motion, speed, position and current, while its power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light-emitting diode (LED) driver ICs and isolated gate drivers. Its product portfolio includes over 1,500 products across a range of high-performance analog mixed-signal semiconductors. The Company also offers tunneling magnetoresistance (TMR) sensor solutions that provide the highest magnetic sensitivity, lowest power consumption, and the smallest size by comparison to other magnetic technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Microsoft Stock Plunge: Microsoft shares fell 12%, marking the largest single-day drop since March 2020, as investors expressed concerns over slowing Azure cloud growth and cautious guidance, resulting in a market cap loss of approximately $400 billion.
- Tech Sector Decline: The Nasdaq 100 dropped 1.6% and the S&P 500 fell 1%, reflecting weakened market confidence in tech stocks, particularly amid questions regarding the pace of AI monetization following Microsoft's results.
- IBM's Strong Performance: International Business Machines Corp. saw a 6% increase in stock price after reporting better-than-expected quarterly results and guidance, standing out as one of the few bright spots in a weak session for large-cap tech stocks.
- Commodity Market Fluctuations: Gold prices tumbled 3% to $5,250 and silver slid 4% to $112, while copper rose 2.5% to a record $6.20 per pound and WTI crude climbed 3.5% to $65 per barrel, indicating a divergence in commodity market trends.
See More
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- Market Overreaction: Despite Nvidia's better-than-expected earnings report, its stock fell, leading to a significant drop in the Philadelphia Semiconductor Index, indicating cautious investor sentiment amid concerns over increasing competition in the AI sector.
- Increased Competitive Pressure: Analysts suggest that investor focus has shifted from Nvidia's stellar performance to broader concerns about competition and sustainability of investments in AI, resulting in declines for peers like Broadcom, Micron, and AMD.
- Broadcom's Stock Volatility: Broadcom has experienced 23 moves greater than 5% in the past year, with today's 5.2% drop indicating that the market considers this news significant, though it does not fundamentally alter perceptions of the business.
- Long-Term Investment Opportunities: Although Broadcom is down 9% year-to-date, investors who bought shares five years ago have seen a return of 573.4%, highlighting potential opportunities to invest in high-quality stocks amidst market volatility.
See More
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- Customer Base Expansion: Steyerl's appointment is expected to broaden Wolfspeed's customer base across key markets such as AI data centers, renewable energy, industrial power systems, and electric vehicles, indicating a strategic move to diversify market demand.
- Market Performance: Wolfspeed has a market capitalization of $862.10 million, with a staggering 184.52% stock price increase over the past 12 months, currently trading at $19.05, which is approximately 38.8% above its 52-week low, demonstrating strong market performance and investor confidence.
- Analyst Rating: In early February, Piper Sandler reiterated an Overweight rating on Wolfspeed, raising its price target from $6 to $20, reflecting optimistic expectations regarding the company's future growth potential.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
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- Rating Upgrade: Morgan Stanley upgraded Allegro MicroSystems from Equal-weight to Overweight and raised the price target from $45 to $51, reflecting confidence in the company's future growth potential.
- Automotive Semiconductor Growth: Analysts noted that Allegro's increasing semiconductor content in Battery Electric Vehicles and Internal Combustion Engine platforms is expected to drive sustained growth in the automotive semiconductor market in 2026/2027, showcasing the company's strong competitiveness in electrification and ADAS penetration.
- Industrial Sector Opportunities: With improving macro indicators, Allegro's involvement in emerging growth areas such as data centers, robotics, and grid management is anticipated to create additional growth potential, further strengthening its market position.
- Supply Chain Advantages: Analysts emphasized that Allegro's supply chain diversity, lean inventories, and disciplined operating expenditures provide ongoing margin support and resilience, indicating that future profitability is likely to improve further.
See More
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- Industry Benchmark Accuracy: Allegro's newly launched ACS37017 current sensor achieves a typical sensitivity error of 0.55%, meeting the high-fidelity feedback requirements for high-voltage power conversion systems, thereby enhancing overall efficiency in power electronics.
- High-Performance Portfolio: The introduction of the ACS37017 marks Allegro's strategic expansion in high-performance current sensors, complementing the ACS37100 and ACS37200, which set industry benchmarks in speed and power density, catering to diverse design needs.
- Simplified System Design: The ACS37017 integrates a stable, non-ratiometric voltage reference, eliminating the need for external precision voltage reference components, reducing material costs and board space while minimizing system noise and errors, thus enhancing signal clarity.
- Long-Term Stability: With Allegro's proprietary compensation architecture, the ACS37017 maintains highly stable performance despite temperature variations and component aging, ensuring the stability and efficiency of control loops throughout the entire lifespan.
See More
Wall Street Volatility Returns as Microsoft Shares Plunge
- Microsoft Stock Plunge: Microsoft shares fell 12%, marking the largest single-day drop since March 2020, as investors expressed concerns over slowing Azure cloud growth and cautious guidance, resulting in a market cap loss of approximately $400 billion.
- Tech Sector Decline: The Nasdaq 100 dropped 1.6% and the S&P 500 fell 1%, reflecting weakened market confidence in tech stocks, particularly amid questions regarding the pace of AI monetization following Microsoft's results.
- IBM's Strong Performance: International Business Machines Corp. saw a 6% increase in stock price after reporting better-than-expected quarterly results and guidance, standing out as one of the few bright spots in a weak session for large-cap tech stocks.
- Commodity Market Fluctuations: Gold prices tumbled 3% to $5,250 and silver slid 4% to $112, while copper rose 2.5% to a record $6.20 per pound and WTI crude climbed 3.5% to $65 per barrel, indicating a divergence in commodity market trends.
See More
