Astera Labs (ALAB) stock is surging today, and Wall Street sentiment is rising with it. The AI and cloud infrastructure company recently reported record earnings for Q3 2024, and analysts are taking notice. ALAB stock has been rising steadily all month, in part because of a new line of fabric switches that it will be supplying to Nvidia (NVDA). This uniquely positions Astera to continue riding the AI wave to new heights as Nvidia continues expanding its popular AI infrastructure.
What’s Happening with Astera Labs Stock Today?
The earnings-driven momentum hasn’t slowed down for Astera Labs today. As of this writing, ALAB stock is up 30% for the day, and its current trajectory suggests that shares will continue trending upward. While shares didn’t experience much momentum over the past week, they have surged 112% over the past three months. This suggests that Astera Labs is a stock to watch as the AI arms race moves into 2025.
Now that Astera Labs achieved a record revenue of $113.1 million, up 47% from the previous quarter and a year-over-year gain of 206%, Wall Street analysts are rushing to raise their price targets. Here’s a breakdown of the trend of bullish predictions. All analysts mentioned maintain Buy ratings.
- Blayne Curtis of Jefferies (JEF) increased his price target from $65 t0 $100 per share, implying an upside potential of 11%.
- Mark Lipacis of Evercore ISI increased his price target from $80 to $110 per share, implying an upside potential of 23%.
- Ross Seymore of Deutsche Bank (DB) increased his price target from $60 to $100 per share, implying an upside potential of 11%.
- Sujeeva De Silva of Roth MKM increased his price target from $80 to $105 per share, implying an upside potential of 17%.
- Gus Richard of Northland Securities increased his price target from $85 to $100 per share, implying an upside potential of 11%.
Is Astera Labs Stock a Strong Buy?
Overall, Wall Street is highly bullish on Astera Labs. Analysts have a Strong Buy consensus rating on ALAB stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. After a 40% rally in its share price over the past year, the average ALAB price target of $97.36 per share implies 8.2% upside potential.
