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ALAB (Astera Labs)

Buy ALAB. Fundamentals are accelerating (revenue $79.9M in 2022 to $852M last FY; Q2 revenue +104% YoY to $392M; gross margin 73.3%; net income $153M). The market setup is also turning: rebound from ~$245 to ~$310, trying to clear the 50-day EMA and the 50% Fibonacci level, with a double-bottom reversal and a near-term breakout target around $367.

Key Risk: A major customer cuts spend or delays data-center buildouts, breaking the growth and forcing guidance down.

Semiconductor momentum basket

Buy a semis momentum ETF (e.g., SOXX) alongside ALAB. The article notes ALAB’s rebound is coinciding with other top semiconductor names; if ALAB breaks out, it typically pulls in “AI/data-center infrastructure” flows and lifts correlated winners in the same supply chain.

Key Risk: A broad risk-off move in semiconductors (rates spike or AI/data-center demand fears) overwhelms stock-specific strength.

Astera Labs stock has remained under pressure in the past few months, moving from the year-to-date high of $498 to the current $300. It has crawled back this month, and this recovery will likely continue in the coming months as demand for its products continues rising. 

Astera Labs is a top American company started in 2017 by former Texas Instruments engineers who noted that, while processors in data centers were getting faster, the technologies linking them were not keeping pace.

The three engineers have built products that address these issues and is benefiting from the ongoing data center rollout in the United States and other countries. It counts Amazon as its biggest client, with 86% of its revenue coming from its three largest clients. 

This client concentration is a major risk as losing one client would have a significant impact on its business. However, it also creates an opportunity to add more companies in the data center industry.

Astera Labs business has been growing at a significant rate in the past few years. Its revenue jumped from $79.9 million in 2022 to $852 million in the last financial year. Its recent results showed that its revenue rose by 104% YoY in the second quarter to $392 million.

In other words, the company’s revenue in Q2 was $2 million lower than what it made in the whole of 2024. This growth is expected to continue as its Scorpio fabric switches becomes the largest product family, passing its Aries family. 

Its revenue growth coincided with that of its profits. Its gross margin rose to 73.3%, while its net income jumped to $153 million. The management expects that Astera Labs’ business will continue thriving in the coming months. Its quarterly revenue is expected to be between $540 million and $560 million. 

Analysts, on the other hand, expect that its third quarter will be $550 million, representing a 138% annual growth. For the year, revenue is expected to jump to $1.86 billion, followed by $2.19 billion.

This growth explains why many analysts are bullish on Astera Labs despite its stretched valuation. Northland Securities analysts see the stock rising from the current $310 to $350, while TD Cowen sees it hitting $375. Roth Capital sees the shares rising to $450. 

ALAB stock chart | Source: TradingView

The daily chart shows that the ALAB stock has rebounded from the July low of $245 to the current $310. This rebound has coincided with that of other top names in the semiconductor industry. 

The stock is now attempting to move above the 50-day Exponential Moving Average and the 50% Fibonacci Retracement level. There are signs that it has formed a double bottom pattern, which is a bullish reversal pattern.

Therefore, the stock will likely have a strong bullish breakout in the near term. The initial target will be at $367, its highest level on August 4 this year.

It has been about a month since the last earnings report for Astera Labs, Inc. (ALAB - Free Report) . Shares have lost about 13.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Astera Labs, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Astera Labs Q2 Earnings Beat on PCIe 6 and Scorpio StrengthAstera Labs reported second-quarter 2026 non-GAAP earnings of 80 cents per share, up 81.8% year over year. The figure beat the Zacks Consensus Estimate by 15.94%.

Revenues surged 104.4% year over year to $392.4 million, surpassing the Zacks Consensus Estimate by 8.93%. Broad-based demand across AI fabrics and signal-conditioning products drove the upside, while PCIe 6 offerings generated more than half of quarterly revenues.

ALAB Posts Broad-Based Portfolio GrowthThe top line increased 27% sequentially, reflecting strength across the company’s product portfolio. Management cited expanding design activity across customers and product categories as AI infrastructure deployments require greater connectivity bandwidth and more complex switching architectures.

Aries generated record quarterly revenues on solid adoption of PCIe 6 retimers across scale-up and scale-out applications. Demand also benefited from continued PCIe 5 deployments, particularly for inference workloads and higher attach rates associated with newer AI server platforms.

Astera Labs Scales Scorpio X-SeriesThe Scorpio product family delivered significant growth as the X-Series began shipping in initial production volumes across multiple lane configurations. The high-radix Scorpio X-Series entered volume production and is expected to scale materially during the second half of 2026.

Management expects Scorpio to become the company’s largest product family in the third quarter, one quarter earlier than previously projected. The transition will be led by the 320-lane Scorpio X-Series fabric switch, which supports larger accelerator clusters and includes hardware-based Hypercast and in-network compute capabilities.

ALAB Expands Taurus and CXL OpportunitiesTaurus revenues grew strongly on increased unit shipments across AI and general-purpose computing platforms. The company also delivered preproduction volumes of 100-gigabit-per-lane Taurus Smart Cable Modules for 800-gigabit active electrical cables.

Astera Labs expanded the Taurus portfolio with 3.2-terabit Smart Retimers and Smart Redrivers supporting 200-gigabit-per-lane Ethernet and UALink connectivity. Management expects the new offerings to double the Taurus market opportunity to more than $4 billion by 2030.

The company also reported renewed momentum for its Leo CXL memory controllers. ALAB secured a new standard Leo design win with a U.S. hyperscaler and expects standard and custom products to enter volume production at two U.S. hyperscalers in 2027.

Astera Labs’ Margin and Expense DetailsNon-GAAP gross margin was 73.7% in the second quarter of 2026, contracting 230 basis points year over year. The margin performance reflected a broader product mix as Astera Labs scaled its AI fabric and signal-conditioning portfolios.

Non-GAAP operating expenses totaled $135.8 million, rising 10% sequentially as Astera Labs continued investing in its product roadmap. Research and development expenses surged 103.7% year over year to $135.9 million. Sales and marketing expenses increased 41.7% year over year to $26.4 million, while general and administrative expenses rose 76.2% year over year to $36 million.

In the second quarter of 2026, non-GAAP operating margin expanded 290 basis points sequentially to 39.1%.

Astera Labs Maintains Strong Liquidity and Operating CashAstera Labs ended June 30, 2026, with $1.25 billion in cash, cash equivalents, and marketable securities, up $68.5 million from the prior quarter.

Cash provided by operating activities was $87.7 million, supporting continued investments in technology development and portfolio expansion.

Astera Labs Issues Strong Q3 OutlookFor the third quarter of 2026, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of approximately 40%, driven by the Scorpio X-Series production ramp, continued Aries PCIe 6 retimer strength and preproduction Taurus shipments for 800-gigabit Ethernet applications.

Non-GAAP gross margin is projected to be approximately 72%. Non-GAAP operating expenses are expected to be between $156 million and $160 million, with the operating margin forecasted to be roughly 43%.

Management projects non-GAAP earnings between $1.16 and $1.21 per share. The outlook assumes interest and other income of approximately $12 million, a 12% non-GAAP tax rate and about 185 million shares outstanding.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 71.68% due to these changes.

VGM ScoresCurrently, Astera Labs, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Astera Labs, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerAstera Labs, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, EverQuote (EVER - Free Report) , has gained 8.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

EverQuote reported revenues of $195.09 million in the last reported quarter, representing a year-over-year change of +24.6%. EPS of $0.65 for the same period compares with $0.39 a year ago.

EverQuote is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of +34%. Over the last 30 days, the Zacks Consensus Estimate has changed +24.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for EverQuote. Also, the stock has a VGM Score of A.

Astera's Q2 revenue grew 104% YoY, while Q3 guidance implies roughly 40% sequential growth as Scorpio accelerates. Scorpio should become Astera's largest product family one quarter early, with future content exceeding $1,000 per XPU. UALink, optics, Leo, and COSMOS could compound Astera's content opportunity across switching, memory connectivity, and workload orchestration.

The Alger Mid Cap 40 ETF outperformed the Russell Midcap Growth Index during the second quarter of 2026. Astera Labs, Nebius Group, and Western Digital Corporation were among the top contributors to performance. Insmed Incorporated, IREN Limited, and Erasca, Inc. were among the top detractors from performance.

Atreides Management LP purchased a new stake in Astera Labs, Inc. (NASDAQ:ALAB – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 1,216,795 shares of the company’s stock, valued at approximately $587,736,000. Astera Labs accounts for about 4.1% of Atreides Management LP’s holdings, making the stock its 5th biggest holding. Atreides Management LP owned 0.70% of Astera Labs as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Keating Financial Advisory Services Inc. acquired a new stake in shares of Astera Labs during the 2nd quarter worth approximately $25,000. Johnson Financial Group Inc. acquired a new position in shares of Astera Labs during the 2nd quarter valued at $43,000. Bell Investment Advisors Inc acquired a new position in shares of Astera Labs during the 2nd quarter valued at $43,000. Reflection Asset Management bought a new position in Astera Labs during the fourth quarter worth $25,000. Finally, Trifecta Capital Advisors LLC bought a new position in Astera Labs during the second quarter worth $79,000. 60.47% of the stock is currently owned by institutional investors.

Insiders Place Their Bets In related news, Director Manuel Alba sold 136,974 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $442.01, for a total transaction of $60,543,877.74. Following the transaction, the director directly owned 1,287,524 shares of the company’s stock, valued at approximately $569,098,483.24. This trade represents a 9.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Sanjay Gajendra sold 90,630 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the completion of the sale, the chief operating officer owned 1,119,038 shares of the company’s stock, valued at approximately $380,864,583.30. The trade was a 7.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 419,244 shares of company stock worth $163,135,169. 10.40% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In ALAB has been the subject of several research reports. Rothschild & Co Redburn assumed coverage on Astera Labs in a research note on Friday, May 1st. They issued a “neutral” rating and a $153.00 target price for the company. Stifel Nicolaus raised their price target on shares of Astera Labs from $260.00 to $460.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings reiterated a “hold (c)” rating on shares of Astera Labs in a report on Tuesday, August 18th. Morgan Stanley boosted their target price on shares of Astera Labs to $335.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. raised their price target on shares of Astera Labs from $205.00 to $280.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $333.00. Check Out Our Latest Analysis on ALAB

Astera Labs Price Performance Astera Labs stock opened at $290.30 on Thursday. The firm has a market capitalization of $50.36 billion, a P/E ratio of 143.71 and a beta of 3.84. Astera Labs, Inc. has a one year low of $97.89 and a one year high of $499.48. The business has a fifty day moving average price of $347.19 and a 200-day moving average price of $248.42.

Astera Labs (NASDAQ:ALAB – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $0.11. The firm had revenue of $392.40 million for the quarter, compared to the consensus estimate of $360.85 million. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The company’s revenue for the quarter was up 104.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.44 earnings per share. Astera Labs has set its Q3 2026 guidance at 1.160-1.210 EPS. Sell-side analysts expect that Astera Labs, Inc. will post 2.7 earnings per share for the current fiscal year.

Astera Labs Profile (Free Report)

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

See Also Five stocks we like better than Astera Labs Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise Alcoa’s Gallium Project Opens a New Door Beyond Aluminum Oura’s $16 Billion IPO Could Put a New Price on Wearable Tech Can Tesla’s Flying Roadster Distract From Its Real Risks? Want to see what other hedge funds are holding ALAB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Astera Labs, Inc. (NASDAQ:ALAB – Free Report).

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The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Astera Labs, Inc. (ALAB - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Astera Labs, Inc. is one of 614 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ALAB's full-year earnings has moved 43.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ALAB has returned 82.8% so far this year. At the same time, Computer and Technology stocks have gained an average of 17.9%. This means that Astera Labs, Inc. is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, Avnet (AVT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 90.3%.

Over the past three months, Avnet's consensus EPS estimate for the current year has increased 43.1%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Astera Labs, Inc. belongs to the Internet - Software industry, a group that includes 174 individual stocks and currently sits at #77 in the Zacks Industry Rank. Stocks in this group have lost about 0.4% so far this year, so ALAB is performing better this group in terms of year-to-date returns.

Avnet, however, belongs to the Electronics - Parts Distribution industry. Currently, this 4-stock industry is ranked #5. The industry has moved +64% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on Astera Labs, Inc. and Avnet as they attempt to continue their solid performance.

EP Wealth Advisors LLC acquired a new stake in shares of Astera Labs, Inc. (NASDAQ:ALAB – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 4,891 shares of the company’s stock, valued at approximately $2,363,000.

Several other institutional investors have also bought and sold shares of ALAB. Rakuten Securities Inc. bought a new stake in shares of Astera Labs in the 2nd quarter worth about $2,700,000. Ieq Capital LLC purchased a new stake in shares of Astera Labs during the 2nd quarter valued at about $695,000. Callan Family Office LLC bought a new position in shares of Astera Labs in the 2nd quarter valued at about $1,367,000. Keating Financial Advisory Services Inc. bought a new position in shares of Astera Labs in the 2nd quarter valued at about $25,000. Finally, Allworth Financial LP bought a new position in shares of Astera Labs in the 2nd quarter valued at about $1,276,000. Institutional investors own 60.47% of the company’s stock.

Astera Labs Trading Down 1.9% Shares of NASDAQ:ALAB opened at $284.97 on Friday. Astera Labs, Inc. has a 12 month low of $97.89 and a 12 month high of $499.48. The company has a market capitalization of $49.44 billion, a price-to-earnings ratio of 141.07 and a beta of 3.84. The firm’s 50-day moving average is $352.70 and its 200 day moving average is $244.92.

Astera Labs (NASDAQ:ALAB – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $0.11. The business had revenue of $392.40 million during the quarter, compared to the consensus estimate of $360.85 million. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The firm’s quarterly revenue was up 104.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.44 earnings per share. Astera Labs has set its Q3 2026 guidance at 1.160-1.210 EPS. As a group, equities analysts forecast that Astera Labs, Inc. will post 2.7 EPS for the current fiscal year. Analyst Ratings Changes Several brokerages have weighed in on ALAB. Barclays boosted their price objective on Astera Labs from $200.00 to $325.00 and gave the stock an “equal weight” rating in a research note on Monday, July 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Astera Labs in a research note on Tuesday. Rothschild & Co Redburn assumed coverage on Astera Labs in a report on Friday, May 1st. They issued a “neutral” rating and a $153.00 target price for the company. Royal Bank Of Canada boosted their target price on Astera Labs from $425.00 to $500.00 and gave the company an “outperform” rating in a research report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. increased their price target on Astera Labs from $205.00 to $280.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $333.00.

Check Out Our Latest Stock Analysis on Astera Labs

Insider Transactions at Astera Labs In other Astera Labs news, CEO Jitendra Mohan sold 90,630 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $340.35, for a total value of $30,845,920.50. Following the transaction, the chief executive officer owned 1,266,665 shares of the company’s stock, valued at $431,109,432.75. This represents a 6.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Philip Mazzara sold 6,801 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $340.50, for a total value of $2,315,740.50. Following the completion of the sale, the general counsel owned 96,542 shares in the company, valued at approximately $32,872,551. The trade was a 6.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 419,244 shares of company stock valued at $163,135,169. Company insiders own 10.40% of the company’s stock.

Astera Labs Company Profile (Free Report)

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

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V centru pozornosti zůstává AI. Polovodičové tituly dokážou během jediného dne přidat nebo odepsat deset procent a SanDisk letos vzrostl už o více než 400 %. Přesto Palo Mokoš dál hledá příležitosti právě v technologickém sektoru.

Obsah:
00:25 Aktuální trendy na trzích
04:25 Příležitosti v technologiích
06:00 Co hledat v Evropě
06:47 Přijde zářijová korekce?

Hlavním tématem akciových trhů podle makléře Pala Mokoše zůstává umělá inteligence. Vedle AI ale sledují také situaci kolem Íránu a především otázku, kdy se definitivně otevře Hormuzský průliv a obnoví se běžný tok ropy. Na ceně ropy je přitom vidět, že obchodníci stále věří v možnost uklidnění situace. Americká ropa WTI se podle Mokoše pohybuje kolem 85 dolarů za barel, tedy výrazně pod úrovněmi kolem 100 až 110 dolarů, kde byla na začátku konfliktu.

Deset procent za den není výjimkou

Zatímco indexy S&P 500 a Dow Jones se podle Mokoše dostaly na nová maxima, Nasdaq za nimi zaostává a v posledních dnech přišel i výprodej. Nejvíce se přitom prodávají právě akcie spojené s AI, od polovodičů přes výrobce paměťových čipů až po samotné AI společnosti. „Dělají třeba 10 % za den nahoru nebo dolů,“ upozorňuje Mokoš.

Důvodem je podle něj kombinace obav z možného vytvoření AI bubliny, technických faktorů a především vysokých valuací některých titulů. Jako příklad uvádí SanDisk, jehož akcie letos vzrostly o více než 400 %. Po takovém růstu přirozeně přichází tlak na realizaci zisků. „Je tam strach investorů, kteří tam mají hezky nasbírané zisky z toho, že by o to mohli přijít,“ říká. Výsledkem je podle něj téměř stádové chování investorů, kdy akcie během jediného dne výrazně rostou nebo klesají podle aktuální nálady.

Mokoš dál sází na technologie

Přestože je technologický sektor velmi volatilní, Mokoš z něj zatím neutíká. Naopak zmiňuje dva konkrétní tituly, které podle něj mají stále zajímavou technickou strukturu - Marvell Technologies a Astera Labs. „Mně se líbí tyhle dva zase především z technických důvodů. Drží si zatím ten svůj rostoucí trend, nejsou zlomené nebo otočené směrem dolů, navzdory tomu, že zkorigovaly,“ vysvětluje.

Zároveň ale přidává důležité varování. Aktuální prostředí podle něj rozhodně není vhodné pro každého investora. „To opravdu už není v poslední době pro nějaké slabé povahy,“ říká Mokoš.

Ani mimo technologie podle něj není příliš snadné najít atraktivní alternativu. Tradiční dividendové tituly typu Verizon nebo Pfizer ho v současnosti příliš nelákají. „Ta akce je opravdu pořád v těch technologiích, v tom technologickém sektoru,“ říká.

Evropa nespí

Příležitosti ale Mokoš vidí i v Evropě, která letos překonává Spojené státy. Zajímavý titul tentokrát našel mimo technologický sektor. Jde o německý Nordex, výrobce a provozovatel větrných turbín. „Tam se mi líbí právě ten technický vývoj, relativně stabilní růstový trend, kde došlo ke korekci. Takže ten titul může být zase zajímavý k nějakému návratu, nějakému růstu,“ říká Mokoš.

Na zářijovou korekci letos nesází

Tradiční otázkou na přelomu léta a podzimu je, zda září přinese korekci akciových trhů. Mokoš je letos v tomto směru nezvykle opatrný. Důvodem jsou jeho vlastní zkušenosti z předchozích dvou let.
„Poslední dva roky jsem se nechal hodně ovlivnit právě tím sezónním efektem a dostal jsem na trhu pořádně  za uši ve smyslu toho, že jsem čekal pokles,“ přiznává. V obou případech přitom září přineslo velmi silný růst.

Letos proto nechce předem sázet na žádný scénář jen na základě kalendáře. „Nechám se překvapit. Uvidím, jak ten trh se bude chovat, co bude naznačovat, co bude indikovat,“ říká. A aktuálně podle něj trh velký zářijový výplach nenaznačuje.

Astera Labs is evolving from a point-product vendor to an AI fabric platform, driving higher content per accelerator and platform stickiness. I rate ALAB a buy with 15-20% upside, justified by rapid revenue inflection, a new product mix led by Scorpio, and expanding operating margins. ALAB's debt-free, cash-compounding model and 74% gross margins create a structural moat, reducing risk and enabling strategic flexibility.

Astera Labs Inc. (NASDAQ:ALAB) stock climbed Monday after Northland Capital Markets upgraded the semiconductor company from Market Perform to Outperform and set a $350 price forecast.

The upgrade gave investors a fresh reason to buy the stock. Astera Labs also outpaced the broader technology sector. The Nasdaq gained 0.25%, while the S&P 500 fell 0.10%. The technology sector rose 0.41%.

Strong Second-Quarter ResultsThe upgrade follows the company’s better-than-expected second-quarter results on Aug. 5.

It reported adjusted earnings of 80 cents per share, beating the Street estimate of 69 cents. Revenue reached $392.4 million, topping the $360.72 million consensus estimate.

Third-Quarter Outlook Tops EstimatesThe semiconductor company also issued a strong third-quarter outlook. It expects adjusted earnings of $1.16 to $1.21 per share. That compares with the Street estimate of 81 cents.

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Astera Labs forecast revenue of $540 million to $560 million. Analysts had expected $416.53 million.

Astera Labs Technical AnalysisALAB remains in a longer-term uptrend. The stock trades 53.2% above its 200-day simple moving average of $216.62 and 17.9% above its 100-day SMA of $281.56.

Shares are also 6% above the 20-day SMA of $313.17. However, the stock remains 6.4% below its 50-day SMA of $354.51. A move above that level could strengthen the intermediate trend.

The relative strength index stands at 50.60, signaling neutral momentum.

The moving-average picture remains mixed. The 20-day SMA is below the 50-day SMA, pointing to near-term pressure. However, the 50-day SMA remains above the 200-day SMA after a golden cross in May, supporting the longer-term bullish trend.

Immediate resistance sits near $342.50, while support is around $289.50.

ALAB Stock Price Activity: Astera Labs shares were up 5.34% at $338.78 at the time of publication Monday, according to Benzinga Pro data.

Photo via Shutterstock

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Shares of Astera Labs, Inc. (ALAB - Free Report) have gained 1% over the past four weeks to close the last trading session at $322.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $421.06 indicates a potential upside of 30.5%.

The average comprises 17 short-term price targets ranging from a low of $310.00 to a high of $500.00, with a standard deviation of $53.18. While the lowest estimate indicates a decline of 4% from the current price level, the most optimistic estimate points to a 54.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

But, for ALAB, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in ALABThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, eight estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 43.9%.

Moreover, ALAB currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much ALAB could gain, the direction of price movement it implies does appear to be a good guide.

Key Takeaways Astera Labs posted record Q2 revenues of $392.4M, up 104%, with PCIe 6 above 50% of revenues. Scorpio X-Series is set to become ALAB's largest product family by the third quarter, ahead of schedule. ALAB expects Q3 revenues of $540M-$560M, driven by Scorpio, Aries and preproduction Taurus shipments. Astera Labs (ALAB - Free Report) is benefiting from surging demand for PCIe (Peripheral Component Interconnect Express) solutions, particularly as AI infrastructure investments accelerate globally.  In the second quarter of 2026, Astera Labs reported record revenues of $392.4 million, up 104% year over year, with PCIe 6 products representing more than 50% of total revenues. This growth is driven by the adoption of their Scorpio AI Fabric Switches and Aries Retimers, which are critical for high-speed, low-latency connectivity in hyperscale data centers and AI clusters.

The company’s diversified product portfolio is a key strength. Scorpio X-Series, now in volume production, is set to become ALAB’s largest product family by the third quarter of 2026, ahead of schedule. Aries signal conditioning products also delivered record revenues, driven by the transition to PCIe 6 and the increasing complexity of AI system deployments. Taurus, another product line, is ramping up with 800-gig deployments and next-generation 200-gig per lane solutions, expanding ALAB’s market reach.

Staying ahead of competitors like Marvell Technology (MRVL - Free Report) and Credo Technology Group (CRDO - Free Report) , ALAB needs to maintain its pace of innovation and execution. The company’s roadmap includes next-generation PCIe and UALink protocols, optical connectivity solutions and custom silicon for specialized AI workloads.

ALAB’s COSMOS software platform, which enables dynamic traffic shaping and real-time performance management, adds a layer of differentiation by making its hardware solutions more integrated and stickier for customers. The company is also investing in optical interconnects, with plans to deliver near-packaged optics and co-packaged optics solutions in 2027 and beyond, unlocking new multi-billion-dollar market opportunities.

ALAB’s strong financial performance, robust product pipeline and strategic focus on high-growth connectivity markets position it well to stay ahead of MRVL and CRDO. For the third quarter of 2026, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of approximately 40%, driven by the Scorpio X-Series production increase, continued Aries PCIe 6 retimer strength and preproduction Taurus shipments for 800-gigabit Ethernet applications.

ALAB Faces Stiff CompetitionALAB is facing stiff competition from other industry players like Marvell Technology and Credo Technology Group. Both Marvell Technology and Credo Technology are making strong efforts in the connectivity space.

Marvell Technology’s expanding portfolio has been noteworthy. In June 2026, the company introduced the Teralynx T100, the industry’s first 102.4 Tbps AI-optimized switch silicon, delivering up to 25% lower power consumption and ultra-low latency to improve efficiency and scalability in large AI data center networks.

Credo Technology’s expanding portfolio has been noteworthy. In May 2026, the company completed the acquisition of DustPhotonics, adding industry-leading silicon photonics technology to strengthen its optical interconnect portfolio across 800G, 1.6T and 3.2T solutions. The acquisition enhances Credo Technology’s vertically integrated AI connectivity stack and is expected to be a significant growth driver in fiscal 2027, supported by increasing hyperscale AI adoption.

ALAB’s Share Price Performance, Valuation, and EstimatesALAB shares have surged 87.6% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 17.7%. The Zacks Internet - Software industry has decreased 1.8% in the same time frame.

ALAB Stock’s Performance
Image Source: Zacks Investment Research

ALAB stock is trading at a premium, with a forward 12-month Price/Sales of 20.81X compared with the  Internet - Software industry’s 4.09X. ALAB has a Value Score of F.

ALAB’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $ 3.09 per share, which has increased 4.04% over the past 30 days. This suggests 67.93% year-over-year growth.

ALAB’s Zacks RankAstera Labs currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has ASE Technology Hldg (ASX - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

ASE Technology Hldg is a member of the Computer and Technology sector. This group includes 614 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ASE Technology Hldg is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ASX's full-year earnings has moved 15.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ASX has gained about 140.1% so far this year. At the same time, Computer and Technology stocks have gained an average of 16.8%. This shows that ASE Technology Hldg is outperforming its peers so far this year.

Astera Labs, Inc. (ALAB - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 87.5%.

In Astera Labs, Inc.'s case, the consensus EPS estimate for the current year increased 43.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, ASE Technology Hldg belongs to the Electronics - Semiconductors industry, a group that includes 49 individual stocks and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 31% so far this year, meaning that ASX is performing better in terms of year-to-date returns.

In contrast, Astera Labs, Inc. falls under the Internet - Software industry. Currently, this industry has 174 stocks and is ranked #94. Since the beginning of the year, the industry has moved -1.4%.

Investors with an interest in Computer and Technology stocks should continue to track ASE Technology Hldg and Astera Labs, Inc.. These stocks will be looking to continue their solid performance.

Key Takeaways Astera Labs stock dips 12% after Q2 earnings despite strong year-to-date gains and AI product demand. ALAB expects Q3 revenues of $540M-$560M, driven by Scorpio X-Series and continued Aries strength. Astera Labs faces premium valuation, higher expenses and tougher AI infrastructure competition. Astera Labs (ALAB - Free Report) shares have lost 12% since it reported second-quarter 2026 results on Aug. 4, 2026.  The company’s second-quarter earnings suffered from higher operating expenses due to continued investment in its product roadmap. Challenging macroeconomic uncertainties and stiff competition remain headwinds.

Click here to check the details of ALAB’s second-quarter 2026 results.

However, Astera Labs shares have gained 91.4% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 18.6% and the Zacks Internet - Software industry’s decline of 4.3% over the same time frame. The outperformance can be attributed to the strong demand for their AI connectivity products, especially the Scorpio and Aries portfolios.

ALAB Stock Performance
Image Source: Zacks Investment Research

ALAB Benefits From Strong Demand for PCIe SolutionALAB is rapidly expanding its portfolio to address the growing demands of AI infrastructure and connectivity solutions. Its product portfolio, including Scorpio, Aries, and Taurus, has been a key catalyst. In the second quarter of 2026, PCIe 6 products, including the Scorpio AI Fabric Switches and Aries Retimers, accounted for more than 50% of total revenues, highlighting the market leadership of ALAB’s Gen 6 portfolio.

The Scorpio product family delivered significant growth in the second quarter of 2026, as the X-Series began shipping in initial production volumes across multiple lane configurations. The high-radix Scorpio X-Series entered volume production and is expected to scale materially during the second half of 2026. Management expects Scorpio to become the company’s largest product family in the third quarter, one quarter earlier than previously projected. The transition will be led by the 320-lane Scorpio X-Series fabric switch, which supports larger accelerator clusters and includes hardware-based Hypercast and in-network compute capabilities.

In the second quarter of 2026, Taurus revenues grew strongly on increased unit shipments across AI and general-purpose computing platforms. The company also delivered preproduction volumes of 100-gigabit-per-lane Taurus Smart Cable Modules for 800-gigabit active electrical cables.

Astera Labs expanded its Taurus signal conditioning portfolio with 3.2T Smart Retimers and Smart Redrivers for 224G Ethernet and UALink connectivity, strengthening AI infrastructure capabilities. The new OCP-compatible design enables Smart Swap flexibility, while Unified COSMOS software adds advanced telemetry, diagnostics and intelligent link management across high-speed interconnects.

ALAB Offers Strong Q3 GuidanceAster Labs is benefiting from strong demand for its Aries, Taurus, and Scorpio product families, all of which are expected to drive growth in the third quarter of 2026.

For the third quarter of 2026, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of approximately 40%, driven by the Scorpio X-Series production ramp, continued Aries PCIe 6 retimer strength and preproduction Taurus shipments for 800-gigabit Ethernet applications. The Zacks Consensus Estimate for third-quarter revenues is pegged at $405.29 million, representing year-over-year growth of 75.78%.

Management projects non-GAAP earnings between $1.16 and $1.21 per share in the third quarter of 2026. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at 77 cents per share, which has been unchanged over the past 30 days. The figure implies a year-over-year increase of 57.14%.

ALAB Faces Stiff CompetitionDespite an expanding portfolio and strong partner base, ALAB is facing stiff competition from other industry players like Marvell Technology (MRVL - Free Report) , Cisco Systems (CSCO - Free Report) and Credo Technology (CRDO - Free Report) . These companies are all expanding their footprints in the AI infrastructure space.

Marvell Technology’s expanding portfolio has been noteworthy. In June 2026, Marvell Technology introduced the Teralynx T100, the industry’s first 102.4 Tbps AI-optimized switch silicon, delivering up to 25% lower power consumption and ultra-low latency to improve efficiency and scalability in large AI data center networks.

Cisco Systems has been integrating AI into its product portfolios across networking, security, collaboration and observability. Strong demand for Cisco Systems’ products in developing AI infrastructure has been a game-changer for the company. In the third quarter of fiscal 2026, AI infrastructure orders taken from hyperscalers totaled $1.9 billion in the reported quarter compared with $600 million in the year-ago quarter. Cisco Systems raised its fiscal 2026 hyperscaler AI infrastructure order outlook from $5 billion to $9 billion, and increased expected AI infrastructure revenues from $3 billion to $4 billion.

Credo Technology’s expanding portfolio has been noteworthy. In May 2026, Credo Technology completed its acquisition of DustPhotonics, adding industry-leading silicon photonics technology to strengthen its optical interconnect portfolio across 800G, 1.6T and 3.2T solutions. The acquisition enhances Credo Technology’s vertically integrated AI connectivity stack and is expected to be a significant growth driver in fiscal 2027, supported by increasing hyperscale AI adoption.

ALAB Shares Trade at a PremiumAstera Labs’ stock is trading at a premium, as suggested by the Value Score of F.

In terms of the forward 12-month Price/Sales, ALAB is trading at 28.94X, higher than the Computer & Technology sector’s 6.65X.

ALAB Valuation
Image Source: Zacks Investment Research

ConclusionAstera Labs is well positioned to benefit from strong AI infrastructure spending, supported by the rapid adoption of its Scorpio, Aries, and Taurus product families. However, its stretched valuation, rising operating expenses and intensifying competition remain concerns.

Astera Labs currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Microchip will showcase an end-to-end PCIe Gen 6 storage architecture with Micron's 9650 NVMe SSDs.The platform offers higher bandwidth, lower latency and scalable connectivity for AI, HPC and cloud workloads.Microchip's broader portfolio may shorten development cycles and improve interoperability. Microchip Technology (MCHP - Free Report) announced on Tuesday (Aug. 4) that it will showcase an end-to-end PCIe Gen 6 storage architecture, which combines its Switchtec PCIe Gen 6 switches with Micron’s (MU - Free Report) 9650 NVMe solid-state drives (SSDs). The architecture will strengthen MCHP’s prospects in the rapidly expanding AI and enterprise data-center market. The collaboration with Micron expands MCHP’s opportunity across hyperscalers, enterprise-server manufacturers, storage vendors and semiconductor companies building CPU- and GPU-based platforms. It also strengthens Microchip’s competitive prowess against Broadcom (AVGO - Free Report) and Astera Labs (ALAB - Free Report) .

The combination of Microchip’s Switchtec PCIe Gen 6 switches with Micron’s high-performance 9650 NVMe SSDs offers greater bandwidth, lower latency and scalable storage connectivity for AI, high-performance computing (HPC) and cloud workloads. Micron’s 9650 is positioned as the first PCIe Gen 6 data-center SSD and offers as much as twice the performance of PCIe Gen 5 drives. Pairing these drives with MCHP’s Switchtec switches allows multiple high-speed storage devices to connect efficiently with processors, accelerators and memory resources. This is particularly relevant in disaggregated computing architectures, where data must move rapidly among increasingly distributed compute and storage components.

The combination also highlights the performance advantages of Microchip’s latest Switchtec platform. The company’s PCIe Gen 6 switches are manufactured using a 3-nanometer process, support configurations of up to 160 lanes and are designed to deliver lower power consumption in high-density AI systems. Microchip offers Switchtec switches along with storage controllers, memory controllers, retimers, power-management devices and timing products, which reflects the company’s focus on offering a broader system-level solution rather than competing with a stand-alone switching component.

This broader portfolio could give Microchip an important competitive advantage. Customers adopting PCIe Gen 6 must address switching, signal integrity, storage control, timing, power and management-software requirements simultaneously. MCHP can potentially supply several of these elements, supported by its ChipLink tools, unified management software and cross-product visibility. Such integration can shorten customer development cycles, improve interoperability and raise the amount of Microchip content in each platform. It also supports MCHP’s Total System Solutions strategy, under which an anchor-product design win can lead to the attachment of several complementary Microchip products.

MCHP Faces Tough CompetitionBroadcom competes with Microchip in PCIe switches, PCIe retimers, networking, and storage connectivity, while Astera Labs offers PCIe Gen 6 fabric switches, PCIe retimers and CXL memory connectivity.

Broadcom is rapidly strengthening its position across AI infrastructure, creating competitive pressure for Microchip in high-performance data centers. The company expects AI semiconductor revenue to reach $56 billion in FY2026, up approximately 180% year over year, with revenue projected to exceed $100 billion in FY2027, driven by custom AI accelerators (XPUs) and networking solutions for six major hyperscale AI customers.

Astera Labs’ close alignment with hyperscale cloud providers and GPU platform roadmaps position it to capture an increasing share of next-generation AI server designs. One of the company's biggest competitive strengths is its Scorpio AI Fabric Switch portfolio. Astera Labs said Scorpio X-Series has entered volume production and is expected to become its largest product family in the third quarter, one quarter earlier than previously expected. The company is already shipping multiple Scorpio X configurations into hyperscale AI platforms and expects deployments to expand across additional customers by year-end.

MCHP’s Share Price Performance, Valuation & EstimatesShares of Microchip have appreciated 21.8% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 18.6%.

MCHP Stock’s Price Performance
Image Source: Zacks Investment Research

The MCHP stock is trading at a premium, with a forward 12-month price/earnings of 23.44X compared with the broader sector’s 21.96X. Microchip has a Value Score of D.

MCHP’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Microchip’s fiscal 2027 earnings is currently pegged at $3.14 per share, up by a nickel over the past 30 days, suggesting 91.46% growth from fiscal 2026’s reported figure.
 

Microchip currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Astera Labs' Q2 revenues reached a record $392.4M, up 27% sequentially and 104% year over year.PCIe 6 products topped 50% of Q2 revenues as Scorpio and Aries drove broad-based portfolio growth.Q3 revenues are forecasted at $540M-$560M as Scorpio X-Series ramps into volume production. Astera Labs, Inc. (ALAB - Free Report) centered its second-quarter 2026 earnings call on an earlier-than-expected production ramp for Scorpio fabric switches and a sharp third-quarter revenue step-up.

Management also widened the growth narrative beyond switching, pointing to sustained Aries demand, new CXL wins, optical connectivity and custom silicon as additional drivers for 2027 and beyond.

ALAB Sets Up a Sharp Q3 Step-UpChief financial officer Desmond Lynch guided third-quarter revenues to $540-$560 million. The midpoint represents 40% sequential growth, led by Scorpio X-Series volume production.

Lynch said continued Aries PCIe 6 strength and preproduction Taurus shipments for 800-gig Ethernet would also support the quarter. Scorpio is expected to become Astera Labs’ largest product family one quarter earlier than previously anticipated.

Second-quarter revenues rose 27% sequentially and 104% year over year to $392.4 million. Non-GAAP earnings of 80 cents per share beat the Zacks Consensus Estimate of 69 cents, while revenues exceeded the $360.2 million consensus mark.

Astera Labs, Inc. Price, Consensus and EPS Surprise

Astera Labs Expands the Product EngineChief executive officer Jitendra Mohan said PCIe 6 products generated more than half of total revenue, up from one-third in the first quarter. Scorpio and record Aries sales drove that shift.

President and chief operating officer Sanjay Gajendra said Aries benefited from continued PCIe 5 demand in inference systems and higher attach rates for PCIe 6. He expects that cycle to continue into later protocol generations.

Mohan also highlighted Taurus growth and said new 200-gig-per-lane signal conditioners could double the portfolio’s market opportunity to more than $4 billion by 2030.

ALAB Converts Growth Into Operating LeverageLynch reported a 73.7% non-GAAP gross margin, slightly above the company’s 73% guidance. Non-GAAP operating margin reached 39.1%, up 290 basis points sequentially.

Third-quarter gross margin is expected to ease to about 72% as the product mix broadens. Even so, Lynch projected a non-GAAP operating margin of roughly 43%, up 400 basis points sequentially.

In response to a Barclays analyst, Lynch said Scorpio’s average margin profile is broadly consistent with corporate gross margins, though use cases and lane utilization create variation. He maintained a long-term gross-margin target of 78%.

Astera Labs Builds Its 2027 Opportunity SetMohan said Astera Labs plans to support 2027 XPU platforms with UALink switches and copper and optical signal-conditioning products. Management expects the protocol transition to increase content per accelerator.

Gajendra said standard and custom Leo CXL memory controllers are scheduled for volume shipments to two U.S. hyperscalers in 2027. The company is targeting memory expansion, accelerator attachment and general-purpose computing applications.

Gajendra outlined initial fiber-attach and near-packaged-optics production for 2027, followed by co-packaged optical Scorpio switches from 2028. Initial custom-connectivity shipments are also planned for 2027.

ALAB Q&A Highlights Customer Diversity and Pipeline StrengthA JPMorgan analyst asked whether Scorpio X would overtake Scorpio P during the third quarter. Gajendra confirmed that the lead high-volume program should make X-Series the larger contributor.

A BNP Paribas analyst asked about customer breadth beyond the lead hyperscaler. Gajendra said more than 10 customers are engaged with Scorpio X, with multiple programs in preproduction or qualification and further ramps targeted around year-end and early 2027.

A Citigroup analyst asked about content per accelerator. Gajendra said the high-radix Scorpio X opportunity already exceeds $1,000 per XPU and that broader connectivity content can reach multiple thousands of dollars as optical links and higher attach rates expand.

Astera Labs Keeps Execution at the ForefrontManagement’s posture remained centered on converting design activity into production while funding a broader product roadmap. The near-term test is the scale and timing of the Scorpio X ramp embedded in third-quarter guidance.

The longer-term focus is diversification across customers, protocols and connectivity media. Astera Labs is pairing that expansion with continued investment while targeting stronger operating leverage as revenue grows.

ALAB Rank and Style Scores Show a Mixed SetupALAB carries a Zacks Rank #3 (Hold), a Value Score of F, a Growth Score of A, a Momentum Score of F and a VGM Score of C. The profile combines strong growth characteristics with weak value and momentum readings and a middle-range composite score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Style Scores are designed to complement the Zacks Rank, with A or B scores carrying the strongest historical signal when paired with a Zacks Rank #1 or Zacks Rank #2 (Buy). ALAB’s current combination is mixed, and its Zacks Rank can change as earnings estimates are revised after the newly reported results.

Astera Labs reported quarterly adjusted earnings of 80 cents per share, which beat the Street’s 69 cent estimate, according to Benzinga Pro data. Quarterly revenue came in at $392.4 million, which beat the consensus estimate of $360.72 million.

"Astera Labs delivered outstanding Q2 2026 results, with record revenue of $392.4 million, up 27% sequentially and 104% year-over-year, driven by broad-based strength across our portfolio, including record quarterly revenue for our Aries product line," said Jitendra Mohan, Astera Labs’ CEO.

Astera Labs said it seed third-quarter adjusted EPS of $1.16-$1.21, versus market estimates of 81 cents. The company sees sales of $540.000 million-$560.000 million, versus expectations of $416.526 million.

Astera Labs shares fell 1.8% to $355.00 in pre-market trading.

These analysts made changes to their price targets on Astera Labs following earnings announcement.

Jefferies analyst Blayne Curtis maintained the stock with a Buy and raised the price target from $270 to $450. Needham analyst N. Quinn Bolton maintained the stock with a Buy and raised the price target from $260 to $425. Considering buying ALAB stock? Here’s what analysts think:

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Astera Labs, Inc. (ALAB) Q2 2026 Earnings Call August 4, 2026 4:30 PM EDT

Company Participants

Leslie Green - Investor Contact
Jitendra Mohan - Co-Founder, CEO & Executive Director
Sanjay Gajendra - Co-Founder, President, COO & Director
Desmond Lynch - Chief Financial Officer

Conference Call Participants

Harlan Sur - JPMorgan Chase & Co, Research Division
Blayne Curtis - Jefferies LLC, Research Division
Joseph Moore - Morgan Stanley, Research Division
Tore Svanberg - Stifel, Nicolaus & Company, Incorporated, Research Division
Natalia Winkler - UBS Investment Bank, Research Division
Sean O'Loughlin - TD Cowen, Research Division
Papa Sylla - Citigroup Inc., Research Division
Robert Smith - Barclays Bank PLC, Research Division
Ananda Baruah - Loop Capital Markets LLC, Research Division
Sujeeva De Silva - ROTH Capital Partners, LLC, Research Division
Jeffrey Koche - Raymond James & Associates, Inc., Research Division
Karl Ackerman - BNP Paribas, Research Division

Presentation

Operator

Good afternoon. My name is Holly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Astera Labs Q2 2026 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Leslie Green, Investor Relations for Astera Labs. Leslie, you may begin.

Leslie Green
Investor Contact

Thank you, Holly, and good afternoon, everyone, and welcome to the Astera Labs Second Quarter 2026 Earnings Conference Call. Joining us on the call today is Jitendra Mohan, Chief Executive Officer and Co-Founder; Sanjay Gajendra, President and Chief Operating Officer and Co-Founder; and Desmond Lynch, Chief Financial Officer.

Before we get started, I would like to remind everyone that certain comments made in this call today may include forward-looking statements regarding, among other things, expected future financial results, strategies and plans future operations and the markets in which we operate. These forward-looking statements reflect management's current beliefs, expectations and assumptions about future events, which are inherently subject to risks and uncertainties that are

ALAB stock is moving. Watch the price action here. Astera Labs Q2 Details Astera Labs reported quarterly adjusted earnings of 80 cents per share, which beat the Street’s 69 cent estimate, according to Benzinga Pro data.

Quarterly revenue came in at $392.4 million, which beat the consensus estimate of $360.72 million.

Non-GAAP gross margin was 73.7%, and non-GAAP operating margin was 39.1% for the quarter.

“Astera Labs delivered outstanding Q2 2026 results, with record revenue of $392.4 million, up 27% sequentially and 104% year-over-year, driven by broad-based strength across our portfolio, including record quarterly revenue for our Aries product line,” said Jitendra Mohan, Astera Labs’ CEO.

ALAB Stock Price Activity: According to data from Benzinga Pro, Astera Labs stock was up 5.07% to $380.01 in Tuesday’s extended trading.  

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Record quarterly revenue of $392.4 million, up 27% QoQ and up 104% year-over-yearQ2 revenue strength reflects diversified growth across AI fabrics and signal conditioningQ3 revenue inflection to be driven by Scorpio™ X-Series 320-lane fabric switch production ramp SAN JOSE, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced preliminary financial results for the second quarter of fiscal year 2026, ended June 30, 2026.

“Astera Labs delivered outstanding Q2 2026 results, with record revenue of $392.4 million, up 27% sequentially and 104% year-over-year, driven by broad-based strength across our portfolio, including record quarterly revenue for our Aries product line,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. “We expect momentum to accelerate in Q3 as Scorpio fabric switches become our largest product family, one quarter ahead of our prior expectations. This milestone will mark our evolution into a complete AI fabric infrastructure provider. New design wins across a broadening set of customers coupled with our expansion into optical interconnects and custom solutions further expand our growth opportunity in 2027 and beyond.”

Second Quarter of Fiscal 2026 Financial Highlights
GAAP Financial Results:  

Revenue of $392.4 million, up 27% sequentially and up 104% year-over-yearGAAP gross margin of 73.3%GAAP operating income of $89.2 millionGAAP operating margin of 22.7%GAAP net income of $153.1 millionGAAP diluted net income per share of $0.83 Non-GAAP Financial Results (1):

Non-GAAP gross margin of 73.7%Non-GAAP operating income of $153.5 millionNon-GAAP operating margin of 39.1%Non-GAAP net income of $145.8 millionNon-GAAP diluted net income per share of $0.80 ____________________
(1) See “Reconciliation of GAAP to Non-GAAP Financial Measures” table included below.

Q2 2026 and Recent Business Highlights

Expanded Taurus signal conditioning portfolio to include 3.2T Smart Retimers and Smart Redrivers for 224G Ethernet and UALink connectivity, purpose-built for AI infrastructure. The new Taurus Smart Signal Conditioners are the industry’s first OCP standard footprint compatible design to enable Smart Swap, which will give architects the flexibility to choose between low-power Smart Redrivers and long-reach Smart Retimers without board re-design. The expanded portfolio leverages Astera Labs’ Unified COSMOS software capabilities and will integrate telemetry, diagnostics, and intelligent link management to deliver advanced observability across high-speed interconnects.Showcased comprehensive portfolio updates at Computex 2026 in Taiwan highlighting current AI rack-scale connectivity strategy and the first public demonstration of the Scorpio X-Series 320 Lane Smart Fabric Switch. Additional demonstrations included ultra-low latency optical connectivity, NVIDIA MGX-based reference designs, 200G/lane technology with SerDes diagnostics, COSMOS-enabled rack-level validation, and production ready systems from Astera Labs and ecosystem partners.Demonstrated ecosystem partnership and compatibility at AMD Advancing AI 2026 with multiple exhibits highlighting Astera Labs’ solutions to resolve data movement bottlenecks across PCIe, CXL, and Ethernet. Joint architectures included AMD Instinct platforms operating with Scorpio P-Series 320L for fabric optimization, Leo CXL memory controller for smart memory tiering, and Taurus 1.6T Smart Ethernet Retimers for scale-out connectivity, all with full-stack interop validated from end to end.Announced significant expansion of Astera Labs’ Taiwan operations and Cloud-Scale Interop Lab, deepening the company’s presence within one of the world’s most important semiconductor ecosystems. Astera Labs’ expanded Taiwan footprint positions the company to bring together broader engineering, cross-functional support, and closer business coordination with key AI platform providers including AMD, Arm, Intel, and NVIDIA. Third Quarter of Fiscal 2026 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

Revenue within a range of $540 million to $560 millionGAAP gross margin of approximately 72%GAAP operating expenses within a range of approximately $232 million to $236 millionGAAP tax rate of approximately 4%GAAP diluted net income per share of approximately $0.87 to $0.92 on weighted-average diluted shares outstanding of approximately 185 million Non-GAAP Financial Outlook(2):

Non-GAAP gross margin of approximately 72%Non-GAAP operating expenses within a range of approximately $156 million to $160 millionNon-GAAP tax rate of approximately 12%Non-GAAP diluted net income per share of approximately $1.16 to $1.21 on weighted-average diluted shares outstanding of approximately 185 million ____________________
(2) See “Reconciliation of GAAP to Non-GAAP Outlook” table included below.

Earnings Webcast and Conference Call
Astera Labs will host a conference call to review its financial results for the second quarter of 2026 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-833-461-5787 and using conference ID 622 676 657. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.

Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures, including those concerning our financial outlook, to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. The timing and impact of any adjustments to arrive at the corresponding GAAP financial measures concerning our financial outlook are inherently dependent on future events that are typically uncertain or that may be outside of our control. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, and non-GAAP diluted net income per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, and non-GAAP diluted net income per share provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense
We exclude non-cash stock-based compensation expense from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.

Acquisition-related costs
We exclude acquisition-related costs incurred in connection with our acquisitions, which we generally would have not otherwise incurred in the periods presented as part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees. We believe that providing the non-GAAP measures excluding these costs assists our investors because such costs are not reflective of our ongoing operating results.

Income tax effect
This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.

Other
We exclude other adjustments, including non-cash fair value adjustments related to equity investments without readily determinable fair values. These investments are measured at cost and adjusted for observable price changes or impairment on a nonrecurring basis only upon the occurrence of certain events. Accordingly, these adjustments are not indicative of our core operating performance. 

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on Astera Labs' current expectations. The words “accelerating,” “advance,” “ahead,” “aim,” “anticipate,” “beginning,” “believe," “capabilities,” “coming,” “commence,” “committed,” “confidence,” “continue,” “could,” “deliver,” “designed,” “drive,” “early stages,” “enable,” “estimates," “expanding,” “expect," “forecasting,” “forthcoming,” “forward,” “future,” “goal,” “going forward,” “growth,” “guidance,” “intend," “interest,” “long-term,” “look,” “may,” “mission,” “momentum,” “multi-year,” “next,” “on track,” “opportunity,” “outlook,” “paths,” “planning,” “poised,” “positions,” “potential,” “progressing,” “project,” “proliferate,” “proposed,” “prospects,” “provide,” “pursuing,” “ramp,” “represent,” “roadmap,” “should,” “strategy,” “targeted,” “track,” “trajectory,” “trends,” “upcoming,” “upside,” “ultimately,” “vision,” “well positioned,” “will,” “would,” and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs as of August 4, 2026, and are subject to various assumptions, beliefs, risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include, but are not limited to, statements regarding market trends, dynamics and expectations (including cloud and AI infrastructure and connectivity market trends and the industry’s build out); our and our ultimate customers’ future demand, product purchases, deployment of systems incorporating our products, business, operating results, cash flow, financial position, outlook and guidance (and any underlying drivers), including for the third quarter of fiscal 2026; our business strategy, plans and market, revenue or other forms of opportunities, our absolute or relative market share or growth profile or rate and our timing and ability to further build upon our revenue base, expand our product offerings, portfolio and features or performance, increase and service our market opportunity (including the timing and extent of such market opportunities), remain at the forefront of an AI infrastructure transformation, and scale or expand our connectivity platform; our objectives or strategies for future operations (such as our optical and custom solutions businesses), organizational investments and changes, and the drivers, timing and impacts associated therewith; our production, development, shipping/shipments and delivery of (including timing and customers), activity, applications and demand for, availability of, as well as absolute and relative revenue, growth (including the drivers), ramping and roadmap (e.g., optical) for, existing, new, growing or enhanced (whether technologically or otherwise) products or software, including the high volume deployment of Scorpio X-Series solutions, production volume deployment of Scorpio X-Series 320-L, additional growth catalysts across our Scorpio P-Series, Aries, Taurus and Leo portfolios, and the comparative capabilities, performance and results of those products or software for our customers; the benefits, timing, impact, proliferation and customer adoption of different connectivity standards and demands; the design wins at and diversification, activity, engagements and expectations of our customers; the plans and potential success of our announced and ongoing collaborations, partnerships and strategic relationships, including our warrant agreement with Amazon; the ability of UALink 2.0 to provide for a purpose-built AI compute fabric capable of scaling with industry needs over time and the timing of any initial programs; our competitive positioning and the impacts thereof; our R&D, technology and strategic IP plans; our expanded global footprint with our new Israel Design Center, and the anticipated effects and benefits associated with the design center; the strategies associated with, investments in and size of our team, as well as the associated impacts; and maximize and future industry and macroeconomic conditions, events and trends such as in cloud and AI infrastructure as well as our preparedness and solutions for them. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic and/or geopolitical environment, including economic uncertainty and volatility in the capital markets; risks that demand for our products and the supply chain may be adversely affected, including by the imposition of tariffs by the United States or any other jurisdiction and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and in Israel, Iran and the Middle East), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs' products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 20, 2026, and in subsequent Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not unduly rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

About Astera Labs
Astera Labs (Nasdaq: ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI. Astera Labs' Intelligent Connectivity Platform integrates CXL®, Ethernet, NVLink Fusion, PCIe®, and UALink™ semiconductor-based technologies with the company's COSMOS software suite to unify diverse components into cohesive, flexible systems that deliver end-to-end scale-up and scale-out connectivity. The company's custom connectivity solutions business complements its standards-based portfolio, enabling customers to deploy tailored architectures to meet their unique infrastructure requirements. Discover more at www.asteralabs.com.

  ASTERA LABS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands)

   As of June 30,
2026 December 31,
2025Assets   Current assets   Cash and cash equivalents$111,453  $167,611Marketable securities 1,141,505   1,021,205Accounts receivable, net 192,469   83,202Inventory 113,781   58,979Prepaid expenses and other current assets 92,687   31,033Total current assets 1,651,895   1,362,030Property and equipment, net 119,284   92,038Goodwill 91,557   19,015Other assets 68,765   58,740Total assets$1,931,501  $1,531,823    Liabilities and Stockholders’ EquityCurrent liabilities   Accounts payable$53,930  $42,362Accrued expenses and other current liabilities 110,377   90,680Total current liabilities 164,307   133,042Other liabilities 41,490   35,147Total liabilities 205,797   168,189    Stockholders’ equity   Common stock 17   17Additional paid-in capital 1,485,320   1,348,969Accumulated other comprehensive (loss) income (3,369)  4,310Retained earnings 243,736   10,338Total stockholders’ equity 1,725,704   1,363,634Total liabilities and stockholders’ equity$1,931,501  $1,531,823        ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)

     Three Months Ended Six Months Ended June 30,
2026 March 31,
2026 June 30,
2025 June 30,
2026 June 30,
2025Revenue$392,400 $308,361 $191,925 $700,761 $351,367Cost of revenue 104,833  73,220  46,362  178,053  86,393Gross profit 287,567  235,141  145,563  522,708  264,974          Operating expenses         Research and development 135,898  125,634  66,724  261,532  131,278Sales and marketing 26,372  21,899  18,609  48,271  40,311General and administrative 36,049  25,775  20,456  61,824  42,326Total operating expenses 198,319  173,308  105,789  371,627  213,915Operating income 89,248  61,833  39,774  151,081  51,059Interest and other income 13,577  11,581  10,885  25,158  21,317Income before income taxes 102,825  73,414  50,659  176,239  72,376Income tax benefit 50,263  6,896  560  57,159  10,662Net income$153,088 $80,310 $51,219 $233,398 $83,038          Net income per share attributable to common stockholders:    Basic$0.89 $0.47 $0.31 $1.36 $0.51Diluted$0.83 $0.44 $0.29 $1.28 $0.47Weighted-average shares used in calculating net income per share attributable to common stockholders:         Basic 172,378  170,726  165,428  171,557  164,316Diluted 183,340  181,157  178,100  182,254  178,281                ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

   Six Months Ended
June 30,  2026   2025 Cash flows from operating activities   Net income$233,398  $83,038 Adjustments to reconcile net income to net cash provided by operating activities   Stock-based compensation 112,905   77,920 Depreciation and amortization 7,639   2,517 Non-cash operating lease expense 2,718   1,522 Warrants contra revenue 12,313   2,136 Accretion of discounts on marketable securities (2,180)  (4,489)Other, net (2,961)  734 Changes in operating assets and liabilities:   Accounts receivable, net (109,461)  14,491 Inventory (53,127)  (14,577)Prepaid expenses and other assets (41,422)  (18,474)Accounts payable 2,811   4,607 Accrued expenses and other liabilities (357)  (3,555)Net cash provided by operating activities 162,276   145,870 Cash flows from investing activities   Purchases of property and equipment (28,054)  (6,562)Purchases of marketable securities (359,732)  (404,682)Sales and maturities of marketable securities 233,933   343,611 Payments for business combinations, net of cash acquired (69,214)  — Other investing activities (2,500)  — Net cash used in investing activities (225,567)  (67,633)Cash flows from financing activities   Proceeds from exercises of stock options 836   778 Proceeds from employee stock purchase plan 6,294   4,345 Net cash provided by financing activities 7,130   5,123 Net (decrease) increase in cash, cash equivalents, and restricted cash (56,161)  83,360 Cash, cash equivalents, and restricted cash   Beginning of the period 167,684   80,044 End of the period$111,523  $163,404          ASTERA LABS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
(In thousands, except percentages and per share amounts)

     Three Months Ended Six Months Ended June 30,
2026 March 31,
2026 June 30,
2025 June 30,
2026 June 30,
2025GAAP gross profit$287,567  $235,141  $145,563  $522,708  $264,974 Stock-based compensation expense 1,692   499   353   2,191   315 Non-GAAP gross profit$289,259  $235,640  $145,916  $524,899  $265,289           GAAP gross margin 73.3%  76.3%  75.8%  74.6%  75.4%Stock-based compensation expense 0.4   0.2   0.2   0.3   0.1 Non-GAAP gross margin(1) 73.7%  76.4%  76.0%  74.9%  75.5%          GAAP operating income$89,248  $61,833  $39,774  $151,081  $51,059 Stock-based compensation expense 63,992   48,913   35,474   112,905   77,920 Acquisition-related costs(2) 232   983   —   1,213   — Non-GAAP operating income$153,472  $111,729  $75,248  $265,199  $128,979           GAAP operating margin 22.7%  20.1%  20.7%  21.6%  14.5%Stock-based compensation expense 16.3   15.9   18.5   16.1   22.2 Acquisition-related costs(2) 0.1   0.3   —   0.2   — Non-GAAP operating margin(1) 39.1%  36.2%  39.2%  37.8%  36.7%          GAAP net income$153,088  $80,310  $51,219  $233,398  $83,038 Stock-based compensation expense 63,992   48,913   35,474   112,905   77,920 Acquisition-related costs(2) 232   983   —   1,213   — Other(3) (1,500)  —   —   (1,500)  — Income tax effect(4) (69,996)  (20,137)  (8,670)  (90,133)  (23,308)Non-GAAP net income$145,816  $110,069  $78,023  $255,883  $137,650           Net income per share attributable to common stockholders:    GAAP - basic$0.89  $0.47  $0.31  $1.36  $0.51 GAAP - diluted$0.83  $0.44  $0.29  $1.28  $0.47 Non-GAAP - diluted$0.80  $0.61  $0.44  $1.40  $0.77           Weighted average shares used to compute net income per share attributable to common stockholders:GAAP - basic 172,378   170,726   165,428   171,557   164,316 GAAP - diluted 183,340   181,157   178,100   182,254   178,281                      ____________________
(1) Total may not sum due to rounding.
(2) Acquisition-related costs included certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees.
(3) Other included non-cash and nonrecurring fair value adjustments on equity investments without readily determinable fair values.
(4) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, the non-GAAP tax expense rate was approximately 12%, 11%, and 9%, respectively. For the six months ended June 30, 2026 and 2025, the non-GAAP tax expense rate was approximately 11% and 8%, respectively.   

ASTERA LABS, INC.,RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK (Unaudited)
(In millions, except percentages and per share amounts)

   Outlook for
Three Months Ending
September 30, 2026 Low HighGAAP gross margin 72%  72%Stock-based compensation expense —   — Non-GAAP gross margin 72%  72%    GAAP operating expense$232  $236 Stock-based compensation expense (76)  (76)Non-GAAP operating expense$156  $160     GAAP tax rate 4%  4%Income tax effect 8   8 Non-GAAP tax rate 12%  12%    GAAP net income per share - diluted$0.87  $0.92 Stock-based compensation expense 0.40   0.40 Income tax effect (0.11)  (0.11)Non-GAAP net income per share - diluted$1.16  $1.21          ASTERA LABS, INC.SUPPLEMENTAL FINANCIAL INFORMATION

STOCK-BASED COMPENSATION EXPENSE (Unaudited)
(In thousands)

     Three Months Ended Six Months Ended June 30,
2026 March 31,
2026 June 30,
2025 June 30,
2026 June 30,
2025Cost of revenue$1,692 $499 $353 $2,191 $315Research and development 36,413  29,404  17,852  65,817  37,038Sales and marketing 11,419  9,892  9,194  21,311  21,513General and administrative 14,468  9,118  8,075  23,586  19,054Total stock-based compensation expense$63,992 $48,913 $35,474 $112,905 $77,920                               IR CONTACT: Leslie Green
[email protected]

Astera Labs Q2 earnings are likely to gain from strong AI connectivity momentum, but margin pressure, rich valuation, and rising competition could keep investors cautious.

In the latest trading session, Astera Labs, Inc. (ALAB - Free Report) closed at $249.74, marking a -4.03% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.52%. On the other hand, the Dow registered a loss of 2.19%, and the technology-centric Nasdaq decreased by 1.74%.

Prior to today's trading, shares of the company had lost 46.12% lagged the Computer and Technology sector's loss of 3.5% and the S&P 500's gain of 1.92%.

Market participants will be closely following the financial results of Astera Labs, Inc. in its upcoming release. The company plans to announce its earnings on August 4, 2026. It is anticipated that the company will report an EPS of $0.69, marking a 56.82% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $360.24 million, showing a 87.7% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.97 per share and a revenue of $1.53 billion, indicating changes of +61.41% and +79.64%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Astera Labs, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.01% lower. Right now, Astera Labs, Inc. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Astera Labs, Inc. is currently being traded at a Forward P/E ratio of 87.66. This expresses a premium compared to the average Forward P/E of 20.42 of its industry.

Meanwhile, ALAB's PEG ratio is currently 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.14.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 41% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Despite recent volatility, the artificial intelligence (AI) infrastructure market remains red hot. Shares of Astera Labs (ALAB -7.92%) have rocketed 70% higher this year. However, the stock has pulled back ahead of the company's second-quarter earnings report on Aug. 4. That dip might look like a buying opportunity, but there are enough risk factors to keep me cautious. Here's why I'm bullish on Astera Labs long-term -- but would wait until after earnings to start a position.

Image source: Getty Images.

Favorable outlook for AI spending Astera Labs serves as the connectivity backbone for AI servers in data centers. While it doesn't disclose specific customer names, it serves major hyperscalers -- and those companies continue to spend aggressively on AI compute.

Alphabet, for example, just raised its full-year capital expenditure guidance to around $200 billion and plans further spending increases in 2027. This is extremely bullish for the AI infrastructure supply chain, including Astera Labs.

Astera reported first-quarter revenue of $308 million, up 14% quarter over quarter and 93% year over year. Management guided for second-quarter revenue to come in between $355 million and $365 million, representing another significant increase.

AI servers are packing more chips into each rack, increasing the need for high-bandwidth connectivity and creating more opportunities for Astera to sell in each deployment. Management is clearly focused on attaching as much dollar content as possible to every AI accelerator in a rack, which should also help support healthy margins.

Looking ahead, Astera is expected to ramp up its new 320-lane Scorpio X fabric switches in the second half of 2026 as hyperscalers build larger AI chip clusters that demand higher-bandwidth connectivity.

Today's Change

(

-7.92

%) $

-22.37

Current Price

$

260.15

Risks to watch The stock has already run up this year, and its current 93x forward price-to-earnings multiple already prices in a lot of momentum. That alone makes me cautious, and it adds to other business risks.

Customer concentration stands out. Astera Labs sells to highly profitable hyperscaler businesses, but reliance on a handful of buyers could pressure growth if data center spending stalls. In 2025, one customer accounted for more than 70% of revenue.

Competition is also intensifying. Connectivity and networking are increasingly crowded areas, with much larger semiconductor companies such as Broadcom and Marvell Technology investing in these opportunities. Astera can still win, but it's operating next to giants with deeper resources and broader product portfolios.

That's why I would rather wait until after the results, when we'll know whether guidance supports the current valuation. What could make the stock attractive after earnings -- beyond the headline numbers -- is clear progress in diversifying the customer base and building momentum in selling more products to each customer.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Marvell Technology. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.

Astera stock is showing upward movement. What’s pushing ALAB stock higher? Earnings Preview & HistoryAstera reports earnings on August 4. The company is expected to report second-quarter earnings per share of 69 cents along with revenue of $360.45 million. For the prior quarter, the company reported earnings per share of 61 cents, beating the consensus estimate of 54 cents. Astera Labs also posted revenue of $308.36 million, exceeding the consensus estimate of $292.23 million.

What To WatchA Longer-Term Uptrend in Repair ModeAt around $302, Astera is trading 19.3% below its 20-day SMA ($374.17) and 13.7% below its 50-day SMA ($350.04), which keeps the near-term trend tilted toward "repair mode" rather than a clean uptrend. At the same time, it’s still 20.3% above the 100-day SMA ($250.97) and 46.7% above the 200-day SMA ($205.87), so the bigger-picture trend is still pointing up.

MACD is the key momentum check right now: it’s below its signal line and the histogram is negative, which suggests upside pressure is cooling versus the prior upswing. In plain terms, when MACD sits below its signal line, rallies often need follow-through buying to prove momentum is returning rather than fading.

The longer-term structure still has bullish markers, including the golden cross in May (50-day SMA above the 200-day SMA), but the stock has to rebuild short-term trend support after the recent swing high in June. The 12-month gain of 135.05% also helps explain why pullbacks can be sharp—there’s a lot of prior upside to digest when momentum cools.

Key Support: $289.50 — a nearby level where buyers previously stepped in, and a break below it would put more focus on the 100-day trend area. Analyst Consensus & Recent Actions The stock carries a Buy rating with an average price forecast of $292.14. Recent analyst moves include:

Barclays: Equal-Weight (Raises Target to $325.00) (July 20) TD Cowen: Hold (Raises Target to $425.00) (July 13) UBS: Neutral (Raises Target to $205.00) (June 29) Astera Shares Edge HigherALAB Price Action: At the time of publication, Astera shares are trading 1.88% higher at $297.06, according to data from Benzinga Pro.

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Posted by Defense World Staff on Jul 26th, 2026

Astera Labs, Inc. (NASDAQ:ALAB – Get Free Report)’s share price dropped 6.9% during trading on Friday . The company traded as low as $304.15 and last traded at $304.5240. Approximately 396,418 shares were traded during trading, a decline of 93% from the average daily volume of 5,525,582 shares. The stock had previously closed at $326.97.

Analyst Ratings Changes Several analysts recently weighed in on the stock. Royal Bank Of Canada lifted their price target on shares of Astera Labs from $250.00 to $270.00 and gave the company an “outperform” rating in a report on Wednesday, May 6th. TD Cowen raised their target price on shares of Astera Labs from $225.00 to $425.00 and gave the stock a “hold” rating in a research report on Monday, July 13th. UBS Group raised their target price on shares of Astera Labs from $205.00 to $400.00 and gave the stock a “neutral” rating in a research report on Monday, June 29th. Northland Securities cut shares of Astera Labs from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 26th. Finally, Morgan Stanley increased their price target on shares of Astera Labs from $210.00 to $240.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Twelve research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $282.00.

Read Our Latest Research Report on ALAB

Astera Labs Stock Performance The stock’s 50-day moving average price is $358.95 and its two-hundred day moving average price is $225.66. The stock has a market capitalization of $49.98 billion, a PE ratio of 197.01, a P/E/G ratio of 3.38 and a beta of 3.66.

Astera Labs (NASDAQ:ALAB – Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.07. Astera Labs had a net margin of 26.72% and a return on equity of 18.49%. The company had revenue of $308.36 million during the quarter, compared to analysts’ expectations of $292.19 million. During the same period last year, the company posted $0.33 EPS. Astera Labs’s revenue was up 93.5% on a year-over-year basis. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. On average, analysts predict that Astera Labs, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling In related news, Director Manuel Alba sold 8,491 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $458.38, for a total value of $3,892,104.58. Following the sale, the director owned 286,863 shares in the company, valued at $131,492,261.94. This represents a 2.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jack R. Lazar sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $355.17, for a total value of $3,551,700.00. Following the transaction, the director directly owned 75,688 shares of the company’s stock, valued at approximately $26,882,106.96. This trade represents a 11.67% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,676,845 shares of company stock worth $444,928,806 over the last three months. Corporate insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On Astera Labs Institutional investors and hedge funds have recently modified their holdings of the stock. Eurizon Capital SGR S.p.A. purchased a new position in shares of Astera Labs in the fourth quarter worth $18,708,000. Nordea Investment Management AB purchased a new stake in shares of Astera Labs during the fourth quarter valued at $2,028,000. Swedbank AB boosted its position in shares of Astera Labs by 76.8% during the fourth quarter. Swedbank AB now owns 78,140 shares of the company’s stock valued at $12,999,000 after buying an additional 33,940 shares during the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new stake in Astera Labs in the 4th quarter worth about $499,000. Finally, Revere Asset Management Inc bought a new stake in Astera Labs in the 4th quarter worth about $589,000. 60.47% of the stock is currently owned by institutional investors.

About Astera Labs (Get Free Report)

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

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