We recently published a list of 10 Stocks Lead Monday’s Charge Amid Market Bloodbath. In this article, we are going to take a look at where Allegro MicroSystems, Inc. (NASDAQ:ALGM) stands against other stocks that lead Monday’s charge amid market bloodbath.

The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s confirmation that tariffs on goods from Mexico and Canada are set to take effect on Tuesday.

The tech-heavy Nasdaq posted the biggest loss, down 2.64 percent, followed by S&P at 1.76 percent, and Dow Jones at 1.48 percent.

According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10-percent tariff on goods from China.

Despite the market decline, ten companies bucked an overall pessimistic sentiment, making it to the top gainers list mainly due to bullish ratings and earnings performance, among others. In this article, we have detailed the reasons behind their gains.

To come up with Monday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A technician operating a robotic arm on a production line of semiconductor chips.

Allegro MicroSystems, Inc. (NASDAQ:ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) 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 Allegro MicroSystems, Inc. (NASDAQ: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, Allegro MicroSystems, Inc. (NASDAQ:ALGM) appointed Mike Doogue as its new president and chief executive officer, replacing Vineet Nargolwala.

Overall, ALGM ranks 1st on our list of stocks that lead Monday’s charge amid market bloodbath. 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.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.