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Astera Labs, Inc.
(NASDAQ:ALAB)
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Rating:69Neutral
Price Target:
$396.00
▲(35.81% Upside)
Action:Downgraded
Date:08/05/26
ALAB scores well on fundamentals and near-term outlook: strong margins, rapid scaling, a debt-free balance sheet, and notably bullish Q3 guidance with Scorpio X ramping to volume production. The overall score is held back by very expensive valuation (P/E ~196) and mixed technical signals (negative MACD and only neutral momentum indicators), which increase downside risk if growth or ramp execution falls short.
Positive Factors
High margins and profitability
Sustained high gross and net margins reflect strong pricing power and operating leverage in connectivity silicon. For data-center focused semiconductors, durable margins support reinvestment in R&D and absorb cyclical ASP pressure, underpinning long-term cash generation and profitability if adoption persists.
Negative Factors
Customer/program concentration
Heavy reliance on a handful of large hyperscaler programs concentrates execution risk: schedule slips, specification changes, or customer reprioritization could materially impact revenue timing. Until broader multi-customer ramps occur, top-line growth remains sensitive to single-program outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained high gross and net margins reflect strong pricing power and operating leverage in connectivity silicon. For data-center focused semiconductors, durable margins support reinvestment in R&D and absorb cyclical ASP pressure, underpinning long-term cash generation and profitability if adoption persists.
Read all positive factors
Astera Labs, Inc. Key Performance Indicators (KPIs)
Astera Labs, Inc. (ALAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.35B
Dividend YieldN/A
Average Volume (3M)5.33M
Price to Earnings (P/E)195.7
Beta (1Y)2.69
Revenue Growth104.18%
EPS Growth533.56%
CountryUS
Employees756
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.17
Shares Outstanding171,407,940
10 Day Avg. Volume4,187,444
30 Day Avg. Volume5,333,801
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$418.86Price Target Upside43.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.07
Revenue Forecast (FY)$1.56B
Astera Labs, Inc. Business Overview & Revenue Model
Company Description
Astera Labs, Inc. develops, produces, and markets semiconductor-based connectivity solutions for cloud computing and artificial intelligence infrastructure. Its core offering, the Intelligent Connectivity Platform, comprises a comprehensive portfo...
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:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: record revenue, rapid transition to PCIe 6, Scorpio X entering volume production ahead of schedule, record Aries performance, meaningful product-roadmap expansion (CXL, optics), and robust profitability and cash. The primary concerns are execution and concentration risk around the Scorpio ramp, elevated near-term operating expenses, and margin variability driven by product mix. Overall, the highlights materially outweigh the lowlights.Positive Updates
Record Revenue and Strong Top-Line Growth
Q2 revenue of $392.4 million, up 27% sequentially and up 104% year-over-year, driven by broad-based strength across product portfolio.
Negative Updates
Increased Operating Expenses and Ongoing Investment
Q2 non-GAAP operating expenses were $135.8M, up 10% sequentially as the company invests in roadmap and scaling; Q3 OpEx guidance is $156M–$160M, indicating continued elevated spend to support product ramps.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q2 revenue of $392.4 million, up 27% sequentially and up 104% year-over-year, driven by broad-based strength across product portfolio.
Read all positive updates
Company Guidance
Management guided Q3 non‑GAAP revenue of $540–$560 million (midpoint implying roughly 40% sequential growth from Q2’s $392.4M) and said Scorpio will become the largest product family as Scorpio X moves to volume production. They expect Q3 non‑GAAP gross margin of ~72% (Q2 was 73.7%), non‑GAAP operating expenses of $156–160M, non‑GAAP operating margin of ~43% (up ~400 bps sequentially), interest & other income of ~$12M, a non‑GAAP tax rate of ~12%, diluted share count of ~185M, and non‑GAAP diluted EPS of $1.16–$1.21. Management also highlighted $1.25B of cash on hand and said the guidance is driven by the Scorpio X ramp, continued Aries PCIe‑6 strength, and pre‑production Taurus 100G/lane shipments.Astera Labs, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.20B | 852.52M | 396.29M | 115.79M | 79.87M |
| Gross Profit | 903.00M | 645.26M | 302.70M | 79.83M | 58.68M |
| EBITDA | 334.00M | 224.98M | -78.62M | -21.17M | -56.77M |
| Net Income | 369.49M | 219.13M | -83.42M | -26.26M | -58.34M |
Balance Sheet | |||||
| Total Assets | 1.93B | 1.53B | 1.05B | 196.29M | 211.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.19B | 914.30M | 149.31M | 163.14M |
| Total Debt | 0.00 | 35.15M | 1.29M | 2.93M | 1.60M |
| Total Liabilities | 205.80M | 168.19M | 89.71M | 38.87M | 297.02M |
| Stockholders Equity | 1.73B | 1.36B | 964.80M | 157.43M | -85.29M |
Cash Flow | |||||
| Free Cash Flow | 276.68M | 281.76M | 102.43M | -15.48M | -39.77M |
| Operating Cash Flow | 335.71M | 319.31M | 136.68M | -12.72M | -35.90M |
| Investing Cash Flow | -399.40M | -241.47M | -757.57M | -17.77M | -90.59M |
| Financing Cash Flow | 11.81M | 9.80M | 655.84M | -502.00K | 151.67M |
Astera Labs, Inc. Technical Analysis
Neutral
291.58
Price Trends
357.39
Negative
265.56
Positive
210.15
Positive
Market Momentum
-13.16
Negative
47.83
Neutral
77.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAB, the sentiment is Neutral. The current price of 291.58 is below the 20-day moving average (MA) of 325.56, below the 50-day MA of 357.39, and above the 200-day MA of 210.15, indicating a neutral trend. The MACD of -13.16 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $57.79B | 19.45 | 28.05% | 1.51% | 2.37% | 13.28% | |
69 Neutral | $53.35B | 195.74 | 20.33% | ― | 104.18% | 533.56% | |
68 Neutral | $164.26B | 63.82 | 16.84% | 0.12% | 34.07% | ― | |
67 Neutral | $31.76B | 57.88 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $40.34B | 279.71 | 3.05% | 2.31% | 7.08% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $47.01B | 99.45 | 2.66% | 0.70% | 10.06% | -27.68% |
* Technology Sector Average
ALAB
Astera Labs, Inc.
331.50
160.61
93.98%
MRVL
Marvell
210.54
134.85
178.17%
MCHP
Microchip
74.36
9.89
15.34%
NXPI
NXP Semiconductors
231.78
29.47
14.56%
ON
ON Semiconductor
78.33
30.74
64.59%
STM
STMicroelectronics
53.28
28.67
116.51%
Astera Labs, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Astera Labs Shareholders Approve Directors and Governance Measures
Positive
Jun 8, 2026
Astera Labs, Inc. held its 2026 Annual Stockholders Meeting on June 4, 2026, with 141,439,565 of 171,281,952 eligible common shares represented in person or by proxy. Shareholders elected all three Class II director nominees, Sanjay Gajendra, Crai...
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.