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Astera Labs, Inc. (ALAB)
:ALAB
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Astera Labs, Inc.
(NASDAQ:ALAB)
Rating:64Neutral
Price Target:
$130.00
▲(6.36%Upside)
Positive Factors
AI market prospects
AI spend is expected to continue, boosting the company's prospects.
Product development
Astera Labs is a rapidly growing share gainer in the connectivity chip market.
Revenue growth
The scale-up opportunity for Trainium 3 is estimated to bring significant revenue increases.
Negative Factors
Customer concentration
There are concerns about increased customer concentration from more AMZN impacting the company's valuation multiple.
Investor sentiment
Investor sentiment for AI has worsened amid higher macro uncertainty and supply chain risks.
Astera Labs, Inc. (ALAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.16B
Dividend YieldN/A
Average Volume (3M)5.10M
Price to Earnings (P/E)521.0
Beta (1Y)2.49
Revenue Growth200.19%
EPS GrowthN/A
CountryUS
Employees440
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)0.33
Shares Outstanding164,916,810
10 Day Avg. Volume5,720,554
30 Day Avg. Volume5,100,831
Financial Highlights & Ratios
PEG Ratio4.11
Price to Book (P/B)18.62
Price to Sales (P/S)0.00
P/FCF Ratio181.16
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue50.68
Enterprise Value/Gross Profit4.69K
Enterprise Value/Ebitda-101.53
Forecast
1Y Price Target
$104.83Price Target Upside-14.24% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Astera Labs, Inc. Business Overview & Revenue Model
Company DescriptionAstera Labs, Inc. (ALAB) is a leading semiconductor company that specializes in developing purpose-built connectivity solutions for data-centric systems. The company operates within the technology sector, focusing on enabling seamless data flow between processors, accelerators, and memory. Their core products include purpose-built chips, boards, and software that optimize connectivity in data centers, artificial intelligence, and machine learning applications.
How the Company Makes MoneyAstera Labs generates revenue through the sale of its semiconductor products and solutions, which are specifically designed to enhance data connectivity in complex computing environments. The company's key revenue streams include the sale of high-speed connectivity chips and modules that facilitate efficient data transfer and communication within data centers and cloud infrastructures. Additionally, Astera Labs may engage in strategic partnerships with major technology companies to integrate its solutions into larger systems, further driving sales and market penetration. The company's earnings are significantly influenced by the growing demand for advanced data processing and storage solutions in sectors such as AI, machine learning, and cloud computing.
Astera Labs, Inc. Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 71.29%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
Astera Labs reported strong revenue growth and product expansion, with positive guidance for future quarters. However, geopolitical issues and macroeconomic uncertainties pose potential challenges. The highlights outweigh the lowlights, indicating a positive sentiment overall.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Astera Labs reported Q1 2025 revenue of $159.4 million, up 13% from the prior quarter and 144% higher than Q1 2024.
Expansion of Product Lines
The company expanded its PCIe 6 connectivity portfolio to include gearboxes and optical connectivity technology, enhancing their Aries and Scorpio product families.
Board of Directors Expansion
Appointment of Dr. Craig Barratt to the Board of Directors, bringing significant experience to support the company's strategic goals.
Positive Financial Outlook
Astera Labs provided Q2 guidance with expected revenue growth of 7% to 10% and non-GAAP gross margins of approximately 74%.
Negative Updates
Impact of China Trade Restrictions
The company experienced a modest impact on revenue due to restrictions on shipments of retimers to China, affecting demand for third-party merchant GPU systems.
Macroeconomic Uncertainties
Concerns over tariffs and changing export restrictions, which could impact demand across the AI and cloud infrastructure markets.
Company Guidance
In the Astera Labs Q1 2025 earnings call, the company exceeded its guidance with quarterly revenues of $159.4 million, marking a 13% increase from the previous quarter and a 144% increase year-over-year. Non-GAAP gross margins were at 74.9%, and non-GAAP operating margin was 33.7%. The company anticipates Q2 revenues between $170 million and $175 million. They expect non-GAAP gross margins to remain around 74%, with non-GAAP operating expenses estimated between $73 million and $75 million. Astera Labs remains optimistic about long-term growth, driven by increasing contributions from its Scorpio product line, which is projected to comprise at least 10% of total revenue for 2025. The company is also focusing on expanding its PCIe 6 connectivity portfolio and anticipates significant growth opportunities with the adoption of the UALink protocol.Astera Labs, Inc. Financial Statement Overview
Summary
Astera Labs has demonstrated impressive revenue growth and maintains a strong balance sheet with low leverage. However, ongoing losses and negative profit margins are major concerns, despite the positive turn in free cash flow.Income Statement
Astera Labs has shown a strong revenue growth of 242% from 2023 to 2024. Despite the impressive revenue growth, the company is still not profitable with negative net and EBIT margins, indicating ongoing operational challenges.65
Positive
Balance Sheet
The balance sheet is robust with a high equity ratio of 91.5% and low debt, evidenced by a debt-to-equity ratio of 0.001. However, the negative ROE of -8.65% highlights inefficiencies in generating profits from shareholders' equity.70
Positive
Cash Flow
Astera Labs has improved its cash flow situation significantly, with free cash flow turning positive in 2024. The operating cash flow to net income ratio is strong at -1.64, indicating effective cash management despite net losses.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 396.29M | 115.79M | 79.87M |
| Gross Profit | 302.70M | 79.83M | 58.68M |
| EBITDA | -112.91M | -27.72M | -59.39M |
| Net Income | -83.42M | -26.26M | -58.34M |
Balance Sheet | |||
| Total Assets | 1.05B | 196.29M | 211.73M |
| Cash, Cash Equivalents and Short-Term Investments | 914.30M | 149.31M | 163.14M |
| Total Debt | 1.29M | 2.93M | 1.96M |
| Total Liabilities | 89.71M | 38.87M | 41.90M |
| Stockholders Equity | 964.80M | 157.43M | 169.84M |
Cash Flow | |||
| Free Cash Flow | 102.43M | -15.48M | -39.77M |
| Operating Cash Flow | 136.68M | -12.72M | -35.90M |
| Investing Cash Flow | -757.57M | -17.77M | -90.59M |
| Financing Cash Flow | 655.84M | -502.00K | 151.67M |
Astera Labs, Inc. Technical Analysis
Positive
122.23
Price Trends
95.81
Positive
80.67
Positive
90.36
Positive
Market Momentum
7.70
Negative
70.41
Negative
88.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAB, the sentiment is Positive. The current price of 122.23 is above the 20-day moving average (MA) of 100.05, above the 50-day MA of 95.81, and above the 200-day MA of 90.36, indicating a bullish trend. The MACD of 7.70 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 88.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALAB.
Astera Labs, Inc. Risk Analysis
Astera Labs, Inc. disclosed 65 risk factors in its most recent earnings report. Astera Labs, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astera Labs, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $23.17B | 39.48 | 7.85% | ― | -18.28% | -70.98% | |
70 Outperform | $10.21B | 138.48 | -7.70% | ― | 32.63% | -233.25% | |
70 Outperform | $10.74B | 27.94 | 6.70% | 3.91% | -12.90% | -51.90% | |
64 Neutral | $20.16B | 521.01 | 4.47% | ― | 200.19% | ― | |
64 Neutral | $4.38B | ― | -14.77% | ― | 2.16% | -55.38% | |
56 Neutral | $6.23B | 21.98 | -28.61% | 4.90% | 10.73% | -32.66% | |
52 Neutral | $4.93B | ― | -12.78% | ― | 65.85% | 7.92% |
* General Sector Average
Performance Comparison
ALAB
Astera Labs, Inc.
122.23
76.22
165.66%
MTSI
MACOM Technology Solutions Holdings
137.67
38.13
38.31%
ON
ON Semiconductor
56.92
-21.35
-27.28%
SLAB
Silicon Laboratories
134.50
14.68
12.25%
SWKS
Skyworks Solutions
71.53
-41.84
-36.91%
SITM
SiTime Corporation
190.16
45.98
31.89%
Astera Labs, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Astera Labs Holds 2025 Annual Stockholders Meeting
Positive
Jun 10, 2025
Astera Labs, Inc. conducted its 2025 Annual Stockholders Meeting on June 5, 2025, where 144,451,882 shares were voted. During the meeting, stockholders elected three Class I directors to the board and ratified PricewaterhouseCoopers LLP as the company’s independent auditor for the fiscal year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.
The most recent analyst rating on (ALAB) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Astera Labs, Inc. stock, see the ALAB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.