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Astera Labs, Inc. (ALAB)
NASDAQ:ALAB
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Astera Labs, Inc.
(NASDAQ:ALAB)
Rating:75Outperform
Price Target:
$210.00
▼(-9.83% Downside)
Positive Factors
Revenue Growth
Astera Labs' significant revenue growth indicates strong demand for its products, enhancing its market position and supporting long-term business expansion.
Product Innovation
The rapid success of the Scorpio P-Series demonstrates Astera Labs' ability to innovate and meet market needs, securing a competitive edge in the semiconductor industry.
Strategic Partnerships
Expanding partnerships with industry leaders like NVIDIA enhances Astera Labs' market reach and integration into cutting-edge technologies, fostering sustainable growth.
Negative Factors
Profitability Concerns
Despite revenue growth, negative profit margins highlight inefficiencies that could hinder long-term financial stability if not addressed.
High R&D Expenses
Elevated R&D expenses, while necessary for innovation, may pressure short-term profitability and require careful management to balance growth and financial health.
Increased Tax Rate
A higher tax rate could impact net income, reducing available capital for reinvestment and potentially affecting long-term growth strategies.
Astera Labs, Inc. (ALAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.29B
Dividend YieldN/A
Average Volume (3M)6.02M
Price to Earnings (P/E)403.9
Beta (1Y)2.57
Revenue Growth163.80%
EPS GrowthN/A
CountryUS
Employees440
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)0.44
Shares Outstanding166,219,150
10 Day Avg. Volume5,101,430
30 Day Avg. Volume6,024,268
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.39
Enterprise Value/Revenue24.89
Enterprise Value/Gross Profit32.95
Enterprise Value/Ebitda323.06
Forecast
1Y Price Target
$176.71Price Target Upside-24.13% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering16
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:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlights Astera Labs' significant revenue growth and strategic product ramp-ups, particularly with the Scorpio P-Series. Strong financial metrics and strategic partnerships further bolster the positive sentiment. However, increased R&D expenses and a higher projected tax rate present some challenges.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Astera Labs delivered quarterly revenue of $191.9 million, up 20% from the previous quarter and 150% higher than the revenue in Q2 of 2024.
Scorpio P-Series Milestone
The Scorpio P-Series switches ramped into volume production, exceeding 10% of total revenue and becoming the fastest-ramping product line in Astera Labs' history.
Strong Financial Performance
Non-GAAP gross margin was 76%, up 110 basis points from the previous quarter, and non-GAAP operating margin was 39.2%, up 550 basis points.
Strategic Partnerships Expansion
Astera Labs broadened collaborations with NVIDIA and announced a partnership with Alchip Technologies to advance AI rack-scale infrastructure.
Q3 Revenue Guidance
Astera Labs expects Q3 revenues to be between $203 million and $210 million, up 6% to 9% from Q2 levels.
Negative Updates
High R&D Expenses
Non-GAAP operating expenses for Q2 were $70.7 million, with R&D expenses at $48.9 million, reflecting continued scaling of the R&D organization.
Increased Non-GAAP Tax Rate
The non-GAAP tax rate for Q3 is expected to be approximately 20%, reflecting changes in tax law, with a full-year non-GAAP tax rate of approximately 15%.
Company Guidance
In the second quarter of fiscal year 2025, Astera Labs reported a significant financial performance, with quarterly revenue reaching $191.9 million, marking a 20% increase from the previous quarter and a 150% rise compared to the same period last year. The growth was primarily driven by the company's signal conditioning and switch fabric product lines. The Scorpio P-Series switches, supporting PCIe 6 scale-out applications, emerged as a key revenue driver, comprising over 10% of total revenue and becoming the fastest-ramping product line in Astera Labs' history. The company also achieved a non-GAAP gross margin of 76%, reflecting an improvement of 110 basis points from the prior quarter. Non-GAAP operating expenses totaled $70.7 million, with R&D expenses accounting for $48.9 million. For the third quarter, Astera Labs provided guidance with expected revenue in the range of $203 million to $210 million, driven by growth in the Aries, Taurus, and Scorpio product lines, and anticipated non-GAAP gross margins of approximately 75%. The company also forecasted a non-GAAP tax rate of 20% for the third quarter, reflecting recent tax law changes.Astera Labs, Inc. Financial Statement Overview
Summary
Astera Labs is experiencing rapid revenue growth and maintains a solid balance sheet with low leverage. However, profitability remains a concern with negative profit margins and return on equity. The positive shift in free cash flow is a favorable indicator, suggesting potential for improved financial health.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 605.55M | 396.29M | 115.79M | 79.87M |
| Gross Profit | 457.30M | 302.70M | 79.83M | 58.68M |
| EBITDA | 46.65M | -112.91M | -27.72M | -59.39M |
| Net Income | 100.16M | -83.42M | -26.26M | -58.34M |
Balance Sheet | ||||
| Total Assets | 1.27B | 1.05B | 196.29M | 211.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 914.30M | 149.31M | 163.14M |
| Total Debt | 32.31M | 1.29M | 2.93M | 1.96M |
| Total Liabilities | 135.69M | 89.71M | 38.87M | 41.90M |
| Stockholders Equity | 1.14B | 964.80M | 157.43M | 169.84M |
Cash Flow | ||||
| Free Cash Flow | 210.37M | 102.43M | -15.48M | -39.77M |
| Operating Cash Flow | 249.08M | 136.68M | -12.72M | -35.90M |
| Investing Cash Flow | -518.48M | -757.57M | -17.77M | -90.59M |
| Financing Cash Flow | 11.73M | 655.84M | -502.00K | 151.67M |
Astera Labs, Inc. Technical Analysis
Positive
232.90
Price Trends
150.47
Positive
117.46
Positive
106.71
Positive
Market Momentum
18.61
Negative
77.42
Negative
93.51
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 232.9 is above the 20-day moving average (MA) of 189.51, above the 50-day MA of 150.47, and above the 200-day MA of 106.71, indicating a bullish trend. The MACD of 18.61 indicates Negative momentum. The RSI at 77.42 is Negative, neither overbought nor oversold. The STOCH value of 93.51 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 (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $55.28B | 25.91 | 23.11% | 1.82% | -7.53% | -21.88% | |
75 Outperform | $38.29B | 403.95 | 10.11% | ― | 163.80% | ― | |
69 Neutral | $19.68B | 44.91 | 5.72% | ― | -17.93% | -75.83% | |
67 Neutral | $23.22B | 37.60 | 3.72% | 1.19% | -22.97% | -78.58% | |
58 Neutral | $57.85B | ― | -0.75% | 0.36% | 37.05% | 89.40% | |
55 Neutral | $6.69B | 3.58 | -15.92% | 6.09% | 10.91% | 8.39% | |
54 Neutral | $34.94B | 84.25 | -2.24% | 2.80% | -35.70% | -113.08% |
* General Sector Average
Performance Comparison
ALAB
Astera Labs, Inc.
232.90
189.45
436.02%
MRVL
Marvell
66.59
-7.65
-10.30%
MCHP
Microchip
65.02
-10.38
-13.77%
NXPI
NXP Semiconductors
223.21
-3.50
-1.54%
ON
ON Semiconductor
49.02
-22.70
-31.65%
STM
STMicroelectronics
26.15
-2.11
-7.47%
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.
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.