Astera Labs, Inc. (ALAB) AI Stock Analysis

• Market Cap: $24.38B
• Dividend Yield: N/A
• Average Volume (3M): 6.21M
• Price to Earnings (P/E): 128.5
• Beta (1Y): 2.55
• Revenue Growth: 136.51%
• EPS Growth: N/A
• Country: US
• Employees: 440
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.49
• Shares Outstanding: 168,903,610
• 10 Day Avg. Volume: 6,493,434
• 30 Day Avg. Volume: 6,213,562
• PEG Ratio: 21.14
• Price to Book (P/B): 18.02
• Price to Sales (P/S): 43.87
• P/FCF Ratio: 169.73
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 47.39
• Enterprise Value/Gross Profit: 62.84
• Enterprise Value/Ebitda: 199.72
• 1Y Price Target: $205.83
• Price Target Upside: 42.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): $823.68M

• Rating: 64 Neutral
• Price Target: $155.00 ▲(7.39% Upside)

Astera Labs' overall stock score is driven by strong financial performance and a positive earnings call, highlighting significant revenue growth and strategic expansion. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Positive Factors

Revenue Growth

Astera Labs' impressive revenue growth indicates strong demand for its semiconductor solutions, enhancing its market position in data-centric applications.

Strategic Acquisitions

The acquisition of Xscale Photonics positions Astera Labs to advance its photonic capabilities, supporting long-term growth in optical interconnect solutions.

Operating Margin Improvement

Improved operating margins reflect efficient cost management and strong product demand, contributing to sustainable profitability.

Negative Factors

Profitability Concerns

Negative profit margins highlight ongoing operational challenges, which could hinder long-term financial stability and shareholder returns.

Potential Margin Pressure

Expanding product lines may lead to margin pressures, impacting profitability as the company scales its hardware offerings.

Balance of Copper and Optical Solutions

The delayed transition to optical solutions could slow market capture, affecting competitiveness in the evolving semiconductor landscape.

Astera Labs, Inc. Business Overview & Revenue Model

Company Description

Astera Labs, Inc. is a leading provider of analog semiconductor solutions focused on data-centric applications. The company specializes in high-performance optical interconnects, data center solutions, and advanced integrated circuits that enhance data transmission and processing efficiency. Astera Labs primarily serves the telecommunications, data center, and cloud computing sectors with its innovative products designed to meet the growing demands for bandwidth and low-latency communication.

How the Company Makes Money

Astera Labs generates revenue primarily through the sale of its semiconductor products, including integrated circuits and optical interconnect solutions. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and system integrators in the telecommunications and cloud computing industries. Key revenue streams include licensing agreements for its proprietary technology, product sales of semiconductor devices, and long-term contracts with major technology firms. Additionally, strategic partnerships with industry leaders and collaborations on research and development projects contribute to the company's earnings by expanding its market reach and enhancing its product offerings.

Astera Labs, Inc. Financial Statement Overview

Summary

Astera Labs demonstrates robust revenue growth and a strong balance sheet with low leverage. However, profitability is a concern due to negative profit margins and return on equity. The positive shift in free cash flow is encouraging, indicating 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	723.04M	396.29M	115.79M	79.87M
Gross Profit	545.23M	302.70M	79.83M	58.68M
EBITDA	171.56M	-112.91M	-27.72M	-59.39M
Net Income	198.87M	-83.42M	-26.26M	-58.34M
Balance Sheet
Total Assets	1.40B	1.05B	196.29M	211.73M
Cash, Cash Equivalents and Short-Term Investments	1.13B	914.30M	149.31M	163.14M
Total Debt	0.00	1.29M	2.93M	1.60M
Total Liabilities	129.45M	89.71M	38.87M	297.02M
Stockholders Equity	1.27B	964.80M	157.43M	-85.29M
Cash Flow
Free Cash Flow	229.44M	102.43M	-15.48M	-39.77M
Operating Cash Flow	263.74M	136.68M	-12.72M	-35.90M
Investing Cash Flow	-260.11M	-757.57M	-17.77M	-90.59M
Financing Cash Flow	11.73M	655.84M	-502.00K	151.67M

Astera Labs, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAB, the sentiment is Negative. The current price of 144.34 is below the 20-day moving average (MA) of 166.73, below the 50-day MA of 193.50, and above the 200-day MA of 122.67, indicating a neutral trend. The MACD of -8.80 indicates Positive momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAB.

Astera Labs, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ON	68 Neutral	$18.88B	61.23	3.87%	―	-16.13%	-81.06%
MRVL	67 Neutral	$74.53B	―	-0.75%	0.28%	37.05%	89.40%
NXPI	65 Neutral	$49.61B	24.21	21.19%	2.06%	-6.81%	-23.16%
ALAB	64 Neutral	$24.38B	128.51	18.40%	―	136.51%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	59 Neutral	$21.06B	41.03	3.00%	1.48%	-17.33%	-76.71%
MCHP	52 Neutral	$28.90B	―	-2.85%	3.07%	-23.36%	-131.15%

Astera Labs, Inc. Corporate Events

Astera Labs’ Earnings Call: Strong Growth and Strategic Moves

Astera Labs’ recent earnings call revealed a positive sentiment, highlighting the company’s robust growth in revenue and operating margins. The expansion of its workforce and strategic acquisitions further demonstrate Astera Labs’ commitment to enhancing its future capabilities. While challenges exist, particularly in balancing copper and optical solutions and potential future margin pressures, the company’s current performance and strategic positioning remain strong.

Astera Labs Reports Strong Q3 2025 Financial Performance

Astera Labs, Inc., a prominent player in the semiconductor industry, specializes in providing connectivity solutions for AI infrastructure, leveraging open standards to enhance rack-scale performance. The company recently reported a record quarterly revenue of $230.6 million for the third quarter of fiscal year 2025, marking a significant 20% increase from the previous quarter and a 104% rise year-over-year. This growth was primarily fueled by the ramp-up of new AI platforms and expanded design wins for their Scorpio fabric switch across multiple hyperscaler platforms.

Astera Labs Acquires aiXscale to Boost AI Infrastructure

Astera Labs, Inc. announced on October 22, 2025, that it has entered into a definitive agreement to acquire aiXscale Photonics GmbH. This acquisition aims to enhance Astera Labs’ capabilities in developing photonic scale-up solutions by integrating aiXscale’s fiber-chip coupling technologies with its own connectivity and signal processing portfolio. The move is expected to support the evolution to AI Infrastructure 2.0, which requires advanced optical connectivity to meet the bandwidth demands of scale-up systems. The acquisition is anticipated to bring critical talent and technology to Astera Labs, potentially redefining AI infrastructure connectivity and impacting stakeholders by accelerating the deployment of rack-scale solutions.

The most recent analyst rating on (ALAB) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Astera Labs, Inc. stock, see the ALAB Stock Forecast page.