Astera Labs Shares Surge 18% on Strong Q1 Results and Upbeat Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: seekingalpha
- Significant Revenue Growth: Astera Labs reported Q1 revenue of $308.4 million, reflecting a 14% sequential increase and a remarkable 93% year-over-year growth, driven by strong demand for its PCIe 6 portfolio, as noted by CEO Jitendra Mohan, which is expected to enhance the company's market share.
- Optimistic Future Outlook: The company expects Q2 revenue between $355 million and $365 million, with non-GAAP EPS projected at $0.68 to $0.70, which analysts believe is at least 16% above Wall Street expectations, underscoring Astera Labs' pivotal role in the AI connectivity sector.
- Market Share Expansion: Management indicated that its silicon, optics, and software are now integrated into nearly 90% of global AI compute servers and clusters, with a total addressable market exceeding $20 billion across Scorpio and UALink/PCIe, further solidifying its market position.
- Risks and Challenges: Despite the stock rally, analysts caution that slowing AI capital expenditures, Amazon-related risks, and Astera Labs' high forward earnings valuation of 72x remain potential risk factors that could impact future stock performance.
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Analyst Views on ALAB
Wall Street analysts forecast ALAB stock price to fall
19 Analyst Rating
14 Buy
5 Hold
0 Sell
Moderate Buy
Current: 349.170
Low
155.00
Averages
206.18
High
250.00
Current: 349.170
Low
155.00
Averages
206.18
High
250.00
About ALAB
Astera Labs, Inc. is a global semiconductor company. The Company provides semiconductor-based connectivity solutions for cloud and artificial intelligence (AI) infrastructure. It has developed and deployed its Intelligent Connectivity Platform built from the ground up for cloud and AI infrastructure. Its Intelligent Connectivity Platform provides its customers with the ability to deploy and operate high-performance cloud and AI infrastructure at scale, addressing an increasingly diverse set of requirements. It provides its connectivity products in various form factors, including Integrated Circuits (ICs), boards, and modules. Its PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the potential of accelerated computing at cloud-scale. The Company’s products include Aries products, which include its COSMOS software suite; Taurus products, which are hardware modules based on its Taurus ICs; Leo products; and Scorpio products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Marvell Growth Outlook: Marvell expects fiscal 2027 revenue to grow over 30% year-over-year to nearly $11 billion, with a further 40% increase projected for fiscal 2028, highlighting its robust growth potential in custom AI chips and optical interconnect technologies.
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