Astera Labs, Inc. (ALAB)
NASDAQ:ALAB
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Astera Labs, Inc.
(NASDAQ:ALAB)
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Rating:79Outperform
Price Target:
$363.00
▲(108.56% Upside)
Action:Reiterated
Date:06/09/26
The score is driven primarily by strong current financial performance (high margins, improving growth, strong cash generation, and a debt-light balance sheet) and supportive technical momentum (price well above key moving averages). The main constraint is valuation (very high P/E with no dividend support), with the earnings call adding moderate support via strong guidance but tempered by margin and execution/timing risks.
Positive Factors
High gross margins and operating profitability
Sustained very high gross and operating margins indicate durable product differentiation and pricing power in signal‑conditioning and fabric products. High structural margins fund R&D and go‑to‑market investment while insulating earnings from modest volume swings over the next 2–6 months.
Negative Factors
Execution and timing risk on major ramps
Significant portions of expected upside depend on multi‑quarter qualification and production ramps. Delays or slower customer qualification for Scorpio, optics or custom CXL/NVLink integrations would compress near‑term growth and defer higher‑content revenue, making results sensitive to execution.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and operating profitability
Sustained very high gross and operating margins indicate durable product differentiation and pricing power in signal‑conditioning and fabric products. High structural margins fund R&D and go‑to‑market investment while insulating earnings from modest volume swings over the next 2–6 months.
Read all positive factors
Astera Labs, Inc. (ALAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.93B
Dividend YieldN/A
Average Volume (3M)6.17M
Price to Earnings (P/E)234.2
Beta (1Y)2.56
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. Volume5,690,248
30 Day Avg. Volume6,171,071
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 Cap0.93
Enterprise Value/Revenue58.53
Enterprise Value/Gross Profit77.03
Enterprise Value/Ebitda209.88
Forecast
1Y Price Target
$255.00Price Target Upside46.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)2.97
Revenue Forecast (FY)$1.55B
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: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 | 279.30M | 224.98M | -78.62M | -21.17M | -56.77M |
| 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
236.77
Positive
185.75
Positive
182.13
Positive
Market Momentum
36.25
Positive
66.63
Neutral
68.67
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 319.44, below the 50-day MA of 236.77, and below the 200-day MA of 182.13, indicating a bullish trend. The MACD of 36.25 indicates Positive momentum. The RSI at 66.63 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $62.93B | 234.22 | 20.33% | ― | 104.18% | 533.56% | |
78 Outperform | $244.68B | 97.64 | 16.84% | 0.28% | 34.07% | ― | |
72 Outperform | $45.77B | 80.23 | 7.45% | ― | -9.04% | -4.21% | |
70 Outperform | $76.97B | 29.04 | 26.14% | 1.79% | 2.37% | 13.28% | |
62 Neutral | $51.63B | 255.06 | 3.05% | 2.79% | 7.08% | ― | |
62 Neutral | $70.13B | 471.67 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ALAB
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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.