Astera Labs, Inc. (ALAB) reported earnings 30 days ago. What's next for the stock?
Astera Lab's sharp six-month rally, expanding AI-focused portfolio, and strong Q4 outlook fuel momentum despite rising competition and premium valuation.
Astera Labs' rapid revenue growth and expanding AI connectivity portfolio sharpen the debate over whether it offers more upside than Cisco Systems.
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Astera Labs rises on soaring hyperscaler demand as its Connectivity Platform powers next-gen AI data centers, but sustaining this momentum poses key challenges.
Astera Labs (ALAB) is upgraded to Strong Buy, benefiting from Nvidia's stellar Q3 earnings and AI ecosystem momentum. ALAB's growth is driven by rising GPU sales, expanding adoption of Scorpio switches, and sustained robust demand for PCIe-based retimers. Valuation is attractive, with forward revenue multiples compressed despite upward analyst revisions and strong management guidance for CY25 and CY26.
Astera Labs, Inc. ( ALAB ) Global Technology, Internet, Media & Telecommunications Conference 2025 November 19, 2025 10:00 AM EST Company Participants Nicholas Aberle - VP, Treasurer & Investor Relations Conference Call Participants Srinivas Pajjuri - RBC Capital Markets, Research Division Presentation Srinivas Pajjuri RBC Capital Markets, Research Division Thanks, everyone, for joining. I want to welcome everyone to RBC's TIMT Conference.
As traders position for year-end, the government shutdown is over, major market indices are filling gaps, and seasonal momentum looms.
ALAB's surging revenues and expanding AI platform lineup position it to power the next wave of hyperscale data center growth.
Revenue surged 104% YoY to $230.6 million, beating estimates by nearly 12%, with sequential growth holding steady at 20%. GAAP operating margin expanded to 24%, up from (7.9%) a year ago, while non-GAAP margin hit a record 41.7%. Scorpio P-Series contributed 10% of revenue, expected to double by year-end, with X-Series ramping in 2026 and higher ASP potential.
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ALAB's record Q3, soaring AI-driven sales and expanding partnerships highlight its strong growth momentum and profit scalability.