Astera Labs (NASDAQ: ALAB) stock is up 20.18% in premarket trading on Wednesday, reaching $162.89 following the company’s impressive second-quarter earnings results that significantly exceeded market expectations.
Record quarterly performance
The semiconductor connectivity solutions provider reported record quarterly revenue of $191.9 million for Q2 2025, marking a substantial 150% year-over-year increase and a 20% quarter-over-quarter rise.
The company achieved non-GAAP diluted earnings per share of $0.44, significantly surpassing the forecasted $0.11, while net income reached $51.2 million compared to a net loss of $7.5 million in the same period last year.
CEO Jitendra Mohan attributed the strong financial performance to the successful ramping of the PCIe 6 product portfolio into volume production for customized rack-scale AI systems, alongside new design wins for Scorpio Fabric Switches and robust demand for the signal conditioning portfolio.
Wall Street predicts targets as high as $215
Following the impressive quarterly results, Evercore ISI responded by more than doubling its price target on Astera Labs to $215 from $104 while maintaining an Outperform rating. The research firm described the quarter as a “Big Beat, Big Raise” performance, suggesting the company is hitting its stride in the artificial intelligence product cycle.
Evercore highlighted three key growth drivers: the Scorpio P Series ramp exceeding expectations with the company’s lead customer, the X Series addition potentially increasing content per accelerator to over $1,000, and robust customer interest across various production stages. The firm noted that more than 10 unique customers are engaged with Astera Labs’ newer products.
Against a backdrop of accelerating cloud capital expenditure, which Evercore projects will grow 72% in 2025 compared to 56% in 2024, the research firm believes Astera Labs is positioned to exceed expectations given its multi-pronged product cycle over the next one to two years.
Compiled analyst data from TipRanks positions Astera Labs as a Strong Buy with 12 Buy ratings, 2 Hold ratings, and 0 Sell ratings.
While the average 12-month price target is $116.58, representing a -28.44% downside from the current price of $162.89, price targets range widely, with the highest target at $200.00 and the lowest at $75.00.
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