Astera Labs, Inc. (ALAB)
NASDAQ:ALAB
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Astera Labs, Inc.
(NASDAQ:ALAB)
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Rating:82Outperform
Price Target:
$270.00
▲(55.13% Upside)
Action:Reiterated
Date:05/09/26
The score is driven by strong current financial performance (high margins, improving growth, solid cash generation, and minimal debt) and supportive technical momentum. This is tempered by a premium valuation (high P/E with no dividend support) and execution risk highlighted on the earnings call (near-term margin pressure and initiatives still in early ramp/qualification).
Positive Factors
High Profitability
Sustained high gross and operating margins provide durable internal funding for R&D and qualification efforts, enabling reinvestment without relying on external financing. Strong margin structure also creates resilience to component cost moves and supports long‑term free cash generation if revenue scales.
Negative Factors
Execution & Timing Risk
Material revenue from Scorpio, optics and custom CXL designs is timing‑dependent. Delays or slower customer qualification would push multi‑year revenue assumptions out, increasing the risk that investments and incremental opex fail to convert into sustained higher margins within the planned timeframe.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and operating margins provide durable internal funding for R&D and qualification efforts, enabling reinvestment without relying on external financing. Strong margin structure also creates resilience to component cost moves and supports long‑term free cash generation if revenue scales.
Read all positive factors
Astera Labs, Inc. (ALAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.95B
Dividend YieldN/A
Average Volume (3M)5.87M
Price to Earnings (P/E)58.2
Beta (1Y)2.49
Revenue Growth104.18%
EPS Growth533.56%
CountryUS
Employees440
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.59
Shares Outstanding171,407,940
10 Day Avg. Volume5,963,467
30 Day Avg. Volume5,868,130
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)20.30
Price to Sales (P/S)32.47
P/FCF Ratio98.25
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue49.06
Enterprise Value/Gross Profit64.56
Enterprise Value/Ebitda191.28
Forecast
1Y Price Target
$244.44Price Target Upside40.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)2.95
Revenue Forecast (FY)$1.53B
Astera Labs, Inc. Business Overview & Revenue Model
Company Description
Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, wh...
How the Company Makes Money
Astera Labs makes money primarily by selling semiconductor products that provide high-speed connectivity and signal conditioning inside servers and AI systems. Its main revenue stream is product revenue from shipping its connectivity chips (e.g., ...
Astera Labs, Inc. Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: very strong top‑line growth (Q1 revenue +93% YoY), healthy margins (Q1 non‑GAAP gross margin 76.4% and EPS beat), solid cash balance, and clear product momentum across PCIe Gen6, Scorpio fabric switches and early CXL traction. Management reiterated strong Q2 guidance (15%–18% sequential growth). Key investments (R&D, XScale acquisition) and strategic transitions into optics, UALink and custom solutions position the company for higher dollar content per accelerator, but several major growth initiatives are still in early ramp or qualification stages (optics, some custom wins) and near‑term margins will be impacted by a one‑time 200 bps non‑cash item and elevated operating spend. Overall upside is sizable but timing and execution risk remain.Positive Updates
Record Revenue Growth
Q1 revenue of $308.4M, up 14% sequentially and up 93% year‑over‑year, driven by broad‑based growth across signal conditioning and switch fabric portfolios.
Negative Updates
Rising Operating Expenses
Q1 non‑GAAP operating expenses of $123.9M (R&D $96.2M, S&M $12.0M, G&A $15.7M) driven by continued R&D, acquisition integration and new design centers; Q2 op expense guide increases to $128M–$131M.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue Growth
Q1 revenue of $308.4M, up 14% sequentially and up 93% year‑over‑year, driven by broad‑based growth across signal conditioning and switch fabric portfolios.
Read all positive updates
Company Guidance
For Q2 FY2026 Astera Labs guided revenue of $355–$365 million (up ~15–18% sequentially from Q1’s $308.4M, which was +14% QoQ and +93% YoY), non‑GAAP gross margin of ~73% (Q1 was 76.4%; guidance includes an estimated 200 bps one‑time non‑cash impact), non‑GAAP operating expenses of $128–$131M (Q1 was $123.9M; Q1 R&D $96.2M, S&M $12.0M, G&A $15.7M), interest income of ~$11M (Q1 $11.6M), a non‑GAAP tax rate of ~12% (Q1 11%), ~184M diluted shares (Q1 181.2M), and non‑GAAP diluted EPS of $0.68–$0.70 (Q1 $0.61); the company also noted cash, cash equivalents and marketable securities of $1.18B at quarter end and accelerating Scorpio X 320‑lane shipments into Q2 with full production in 2026.Astera Labs, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.00B | 852.52M | 396.29M | 115.79M | 79.87M |
| Gross Profit | 760.99M | 645.26M | 302.70M | 79.83M | 58.68M |
| EBITDA | 256.83M | 224.98M | -112.91M | -27.72M | -59.39M |
| Net Income | 267.63M | 219.13M | -83.42M | -26.26M | -58.34M |
Balance Sheet | |||||
| Total Assets | 1.66B | 1.53B | 1.05B | 196.29M | 211.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 1.19B | 914.30M | 149.31M | 163.14M |
| Total Debt | 0.00 | 35.15M | 1.29M | 2.93M | 1.60M |
| Total Liabilities | 165.27M | 168.19M | 89.71M | 38.87M | 297.02M |
| Stockholders Equity | 1.49B | 1.36B | 964.80M | 157.43M | -85.29M |
Cash Flow | |||||
| Free Cash Flow | 342.81M | 281.76M | 102.43M | -15.48M | -39.77M |
| Operating Cash Flow | 383.40M | 319.31M | 136.68M | -12.72M | -35.90M |
| Investing Cash Flow | -331.54M | -241.47M | -757.57M | -17.77M | -90.59M |
| Financing Cash Flow | 9.50M | 9.80M | 655.84M | -502.00K | 151.67M |
Astera Labs, Inc. Technical Analysis
Positive
174.05
Price Trends
163.11
Positive
157.81
Positive
168.54
Positive
Market Momentum
18.18
Negative
68.23
Neutral
73.30
Neutral
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 174.05 is below the 20-day moving average (MA) of 208.10, above the 50-day MA of 163.11, and above the 200-day MA of 168.54, indicating a bullish trend. The MACD of 18.18 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 73.30 is Neutral, 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 64 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $36.95B | 58.25 | 20.33% | ― | 104.18% | 533.56% | |
77 Outperform | $73.64B | 10.55 | 26.14% | 1.79% | 2.37% | 13.28% | |
75 Outperform | $147.91B | 42.24 | 19.38% | 0.28% | 42.09% | ― | |
72 Outperform | $42.89B | -183.45 | 7.45% | ― | -9.04% | -4.21% | |
65 Neutral | $54.24B | 215.94 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $50.20B | 173.03 | 3.05% | 2.79% | 7.08% | ― |
* Technology Sector Average
ALAB
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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.